Electrical Equipment & Parts · NASDAQ
Current Price
$13.64
Intrinsic Value
Use the calculator below to estimate
Run a full DCF analysis on FuelCell Energy, Inc. with auto-filled fundamentals, adjustable assumptions, and sensitivity heatmap.
FuelCell Energy, Inc., together with its subsidiaries, designs, manufactures, sells, installs, operates, and services stationary fuel cell power plants for distributed baseload power generation. It offers SureSource1500, a 1.4-megawatt (MW) platform; SureSource 3000, a 2.8 MW platform; SureSource 4000, a 3.7 MW platform; SureSource 250, a 250- kilowatt (kW) platform; SureSource 400, a 400-kW platform; and SureSource Hydrogen, a 2.3 MW platform that is designed to produce up to 1,200 kilograms of hydrogen per day for multi-megawatt utility, microgrid, and distributed hydrogen applications, as well as on-site heat and chilling applications. It also provides SureSource Capture system that separates and concentrates carbon dioxide from the flue gases of natural gas, biomass, or coal-fired power plants, as well as industrial facilities; solid oxide fuel cell/solid oxide electrolysis cell stack technology. The company's SureSource power plants generate clean electricity, usable heat, water, and hydrogen. In addition, it provides engineering, procurement, and construction services; project financing services; and real-time monitoring and remote operation, online support system, preventative maintenance, parts and supplies, on-site and classroom training, and power plant refurbishment/recycling services, as well as technical services in the areas of plant operation and performance, and fuel processing. It serves various markets, including utilities and independent power producers, industrial and process applications, education and health care, data centers and communication, wastewater treatment, government, microgrids, food and beverage, and commercial and hospitality. The company primarily operates in the United States, South Korea, England, Germany, and Switzerland. FuelCell Energy, Inc. was founded in 1969 and is headquartered in Danbury, Connecticut.
ROIC (TTM)
-12.1%
ROE (TTM)
-26.5%
FCF Yield
-18.22%
Based on trailing twelve-month data, FCEL shows a free cash flow per share of N/A and a ROIC of -12.1%, key inputs for stock valuation using the DCF method. The P/FCF ratio of N/A and FCF yield of -18.22% are important context metrics when evaluating FCEL's stock valuation relative to peers.
The intrinsic value of FCEL depends on assumptions about future growth rate, discount rate (WACC), and terminal value. A DCF model discounts projected free cash flows back to present value — small changes in WACC can shift the estimate by 20% or more, which is why sensitivity analysis is essential.
Whether FCEL is undervalued depends on comparing the DCF-derived intrinsic value to the current market price of $13.64. A positive margin of safety (intrinsic value above market price) suggests potential undervaluation, but the degree of confidence depends on the reliability of your growth and discount rate assumptions.
To perform a DCF valuation on FuelCell Energy, Inc.: (1) Start with the trailing free cash flow per share as the base, (2) project future FCF growth over 5-10 years based on Electrical Equipment & Parts industry trends and company fundamentals, (3) apply a discount rate (WACC) reflecting FCEL's risk profile, and (4) add a terminal value for cash flows beyond the projection period.
DCF (Discounted Cash Flow) estimates what a company is worth today based on its future cash generation. For FuelCell Energy, Inc., this means projecting how much free cash flow the Electrical Equipment & Parts will produce over the next 5-10 years, then discounting those amounts to today's dollars. FCEL's ROIC of -12.1% suggests the company may face challenges generating returns above its cost of capital.
WACC (Weighted Average Cost of Capital) is the discount rate in a DCF model — it reflects the minimum return investors require. For FCEL, the capital structure and equity risk premium determine WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%.
