Current Price
$54.59
Intrinsic Value
$29.48
-85.2% margin of safety
COMPETITIVE MOAT
↑Integrated System Ecosystem
Enphase offers a comprehensive suite of solar products, including microinverters, batteries, and software. This integrated approach creates a sticky ecosystem for installers and homeowners, making it harder to switch to competitors.
↑Strong Installer Relationships
The company has cultivated deep relationships with solar installers who rely on Enphase's reliable products and training. This loyalty provides a significant distribution advantage and brand recognition within the installation community.
↑Technological Innovation
Enphase consistently invests in R&D, leading to advanced microinverter technology and energy management solutions. This focus on innovation helps maintain a competitive edge and appeal to customers seeking cutting-edge performance.
INVESTMENT RISKS
↓Intense Market Competition
The solar industry is highly competitive with numerous players, including large established companies and emerging startups. This can lead to price pressures and a constant need to innovate to maintain market share.
↓Sensitivity to Interest Rates
Higher interest rates can increase the cost of financing for solar installations, potentially dampening consumer demand. This macroeconomic factor can directly impact Enphase's sales volume and growth prospects.
↓Regulatory and Policy Shifts
Changes in government incentives, tax credits, or net metering policies can significantly affect the economics of solar energy. Unfavorable policy shifts could reduce demand for Enphase's products.
Base case
ENPH base case valuation
A base case discounted cash flow model for ENPH estimates an intrinsic value of about $29.48 per share, against a current price of $54.59. The model assumes 3.9% annual free cash flow growth, a 10.0% discount rate, and a 30x exit multiple.
Intrinsic Value
$29.48
Margin of safety
-85.2%
Expected annual return
-11.6%
Base case assumptions: 3.9% annual growth, 10.0% discount rate, 30x exit multiple, 5 year projection. Data as of 2026-06-12.
This base case uses default assumptions and is not financial advice. The intrinsic value changes significantly when the growth rate or discount rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the ENPH valuation
Adjust the growth rate, discount rate, and exit multiple to see how the intrinsic value and margin of safety for Enphase Energy, Inc. respond.
Open DCF Calculator for ENPHCompany Overview
Enphase Energy, Inc., along with its subsidiaries, is dedicated to developing, manufacturing, and distributing home energy solutions for the global solar photovoltaic industry. Their core offering is a semiconductor-based microinverter, designed to convert energy at the individual solar module level. This technology seamlessly integrates with their proprietary networking and software, providing advanced energy monitoring and control capabilities. The company's product portfolio also includes AC battery storage systems, the Envoy communications gateway, the cloud-based Enlighten monitoring service, and various related accessories. Enphase sells its offerings through multiple channels, reaching solar distributors, large installers directly, original equipment manufacturers (OEMs), strategic partners, and individual homeowners, as well as through its legacy product upgrade program and online store. Established in 2006, Enphase Energy, Inc. is headquartered in Fremont, California.
Financial Metrics — ENPH Stock Valuation Data
Revenue/Share (TTM)
$10.66
FCF/Share (TTM)
$1.10
ROIC (TTM)
4.0%
ROE (TTM)
13.3%
P/FCF
49.6x
EV/EBITDA
35.2x
FCF Yield
2.02%
Debt/Equity
0.53x
Based on trailing twelve-month data, ENPH shows a free cash flow per share of $1.10 and a ROIC of 4.0%, key inputs for stock valuation using the DCF method. The P/FCF ratio of 49.6x and FCF yield of 2.02% are important context metrics when evaluating ENPH's stock valuation relative to peers.
Frequently Asked Questions
What is the intrinsic value of ENPH?
Enphase Energy, Inc. currently generates $1.10 in free cash flow per share. At the current price of $54.59, a DCF model would discount these cash flows at an appropriate WACC and apply a terminal growth rate to arrive at an intrinsic value. The result depends heavily on your growth and discount rate assumptions — a 1% change in WACC typically shifts the fair value estimate by 10-15%. In MiniValuator the model uses a single discount rate that you can edit directly, 10% by default, rather than a computed WACC.
Is ENPH undervalued?
ENPH trades at a P/FCF ratio of 49.6x with a free cash flow yield of 2.02%. This elevated P/FCF suggests the market is pricing in significant future growth. However, whether ENPH is truly undervalued requires comparing the DCF intrinsic value to the current market price and evaluating whether the margin of safety is sufficient for your risk tolerance.
How do I value ENPH stock using DCF?
To perform a DCF valuation on Enphase Energy, Inc.: (1) Start with the trailing free cash flow per share ($1.10) as the base, (2) project future FCF growth over 5-10 years based on Solar industry trends and company fundamentals, (3) apply a discount rate (WACC) reflecting ENPH's risk profile — with a debt-to-equity of 0.53x, capital structure is an important factor, and (4) add a terminal value for cash flows beyond the projection period.
What is DCF valuation and how does it apply to ENPH?
DCF (Discounted Cash Flow) estimates what a company is worth today based on its future cash generation. For Enphase Energy, Inc., this means projecting how much free cash flow the company will produce over the next 5-10 years, shaped by Solar trends, then discounting those amounts to today's dollars. ENPH's ROIC of 4.0% suggests the company may face challenges generating returns above its cost of capital.
How does WACC affect ENPH stock valuation?
WACC (Weighted Average Cost of Capital) is the discount rate in a DCF model — it reflects the minimum return investors require. For ENPH, with a debt-to-equity ratio of 0.53x, the capital structure directly influences WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%. At an EV/EBITDA of 35.2x, the market's implied discount rate can be reverse-engineered for comparison. In MiniValuator you set this discount rate yourself as a single editable number, 10% by default, instead of computing a formal WACC.
Learn More
- See ENPH PE Valuation → — Earnings-based stock valuation using PE ratio analysis
- DCF Methodology — Step-by-step guide to discounted cash flow analysis
- PE Methodology — Guide to PE ratio stock valuation
- WACC — Understanding the discount rate used in DCF
- Margin of Safety — How to evaluate downside protection
- Intrinsic Value — How to evaluate stock fair value
- How to Calculate Intrinsic Value — Complete guide for investors
Related Valuations
All Energy valuationsDCF and P/E value ENPH with different methods and assumptions, so the two conclusions can differ. Compare the P/E fair value.
Price as of 2026-06-12. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.