SolarEdge Technologies, Inc. (SEDG) Stock Valuation — PE Analysis
Solar · NASDAQ
Current Price
$33.16
PE Ratio (TTM)
n/m
Intrinsic Value
Use the calculator below to estimate
COMPETITIVE MOAT
↑Integrated Product Ecosystem
SolarEdge offers a comprehensive suite of solar products, from inverters to optimizers and batteries. This integration creates a sticky ecosystem for installers and homeowners.
↑Installer Loyalty and Training
The company invests in training and supporting its installer network. This fosters loyalty and makes it harder for competitors to displace SolarEdge products.
↑Technological Innovation in Power Conversion
SolarEdge's expertise in power electronics and its focus on developing advanced solutions, including for data centers, positions it for future growth and differentiation.
INVESTMENT RISKS
↓Dependence on Residential and Commercial Solar Markets
A significant portion of SolarEdge's revenue comes from these two segments. Downturns or policy changes in these markets could materially impact financial performance.
↓Execution Risk in New Ventures
Expanding into new areas like data center power conversion carries inherent execution risks. Success depends on effectively scaling operations and capturing market share.
↓Technological Obsolescence
The rapid pace of technological advancement in energy storage and power electronics means SolarEdge must continuously innovate to avoid its products becoming outdated.
Customize the SEDG PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for SolarEdge Technologies, Inc. respond.
Open PE Calculator for SEDGCompany Overview
SolarEdge Technologies, Inc. (SEDG) is a company specializing in the design, development, and sale of direct current (DC) optimized inverter systems for solar photovoltaic (PV) installations globally. The company operates through five key segments: Solar, Energy Storage, e-Mobility, Critical Power, and Automation Machines. Its product portfolio encompasses inverters, power optimizers, communication devices, and smart energy management solutions, catering to residential, commercial, and smaller utility-scale solar projects. SolarEdge also provides a cloud-based monitoring platform that collects and processes data from its optimizers and inverters to oversee and manage solar PV systems. Beyond its core solar offerings, SolarEdge delivers a range of solutions including residential, commercial, and large-scale PV, energy storage and backup, electric vehicle charging, and home energy management, along with grid services. The company also extends into e-Mobility, automation machinery, lithium-ion cells and battery packs, and uninterruptible power supply (UPS) solutions, as well as developing virtual power plants to aid in grid load management and stability. To support its customers, SolarEdge offers pre-sales assistance, ongoing training programs, and technical and post-installation services. Its products are sold to providers of solar PV systems, solar installers and distributors, electrical equipment wholesalers, PV module manufacturers, and engineering, procurement, and construction (EPC) firms. Founded in 2006, SolarEdge Technologies, Inc. is headquartered in Herzliya, Israel.
Financial Metrics — SEDG PE Stock Valuation Data
PE Ratio (TTM)
n/m
PEG Ratio
n/m
Earnings Yield
-13.53%
ROE (TTM)
-62.5%
Revenue/Share (TTM)
$21.66
Debt/Equity
0.96x
Frequently Asked Questions
What is the PE ratio of SEDG?
The trailing twelve-month PE ratio of SEDG reflects how much investors pay per dollar of SolarEdge Technologies, Inc.'s earnings. This metric is most useful when compared to Solar peers and the company's own historical range.
Is SEDG overvalued based on PE ratio?
SEDG's PE of -7.2x combined with a PEG ratio of -0.04 provides a growth-adjusted perspective. SEDG has negative earnings, so its PE and PEG ratios are not meaningful here and cannot tell you whether the stock is over or undervalued. Keep in mind that PE-based valuation works best for profitable, mature companies — for high-growth or cyclical Solar, a DCF analysis may be more appropriate.
How do I value SEDG stock using PE ratio?
To value SolarEdge Technologies, Inc. using PE: (1) Compare the current PE (-7.2x) against the Solar median to assess relative pricing, (2) check the PEG ratio (-0.04) to adjust for growth expectations, (3) review the 5-year PE range to identify where the stock sits historically, and (4) estimate fair value by multiplying a target PE by forward EPS estimates. This relative approach complements DCF's absolute valuation.
What is the PEG ratio of SEDG?
SEDG's PEG ratio is -0.04, calculated by dividing the PE ratio (-7.2x) by the expected earnings growth rate. Because SEDG has negative earnings, its PEG ratio is not meaningful and should not be read as a sign of under or overvaluation. Note that PEG accuracy depends on the reliability of growth estimates.
Should I use PE ratio or DCF for SEDG stock valuation?
PE ratio gives a quick relative read — how SEDG is priced versus Solar peers. DCF provides an absolute value based on projected free cash flows. For the most reliable valuation, use PE as a quick comparability screen and DCF for a deeper fundamental analysis. Each method has blind spots: PE ignores capital structure and cash flow quality, while DCF is sensitive to growth and discount rate assumptions.
Learn More
- See SEDG DCF Valuation → — Intrinsic value via Discounted Cash Flow analysis
- PE Methodology — Step-by-step guide to PE ratio stock valuation
- DCF Methodology — Guide to discounted cash flow analysis
- PE Ratio — Understanding the price-to-earnings ratio
- Intrinsic Value — How to evaluate stock fair value
Related PE Valuations
All Energy valuationsP/E and DCF value SEDG with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2026-10-07. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.