Current Price
$54.59
PE Ratio (TTM)
53.1x
Intrinsic Value
$43.03
-26.9% 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 PE valuation
A base case PE valuation for ENPH estimates a fair value of about $43.03 per share, against a current price of $54.59. The model assumes 3.9% annual earnings growth, a 50x target PE multiple, and a 10% discount rate.
Intrinsic Value
$43.03
Margin of safety
-26.9%
Expected annual return
-4.6%
Base case assumptions: 3.9% annual earnings growth, 50x target PE, 10% discount rate, 5 year projection. Data as of 2026-06-12.
This base case uses default assumptions and is not financial advice. The fair value changes significantly when the target PE or earnings growth rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the ENPH PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for Enphase Energy, Inc. respond.
Open PE 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 PE Stock Valuation Data
PE Ratio (TTM)
53.1x
PEG Ratio
n/m
Earnings Yield
1.88%
ROE (TTM)
13.3%
Revenue/Share (TTM)
$10.66
Debt/Equity
0.53x
Frequently Asked Questions
What is the PE ratio of ENPH?
The trailing twelve-month PE ratio of ENPH reflects how much investors pay per dollar of Enphase Energy, Inc.'s earnings. This metric is most useful when compared to Solar peers and the company's own historical range.
Is ENPH overvalued based on PE ratio?
ENPH's PE of 53.1x combined with a PEG ratio of -7.37 provides a growth-adjusted perspective. ENPH 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 ENPH stock using PE ratio?
To value Enphase Energy, Inc. using PE: (1) Compare the current PE (53.1x) against the Solar median to assess relative pricing, (2) check the PEG ratio (-7.37) 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 ENPH?
ENPH's PEG ratio is -7.37, calculated by dividing the PE ratio (53.1x) by the expected earnings growth rate. Because ENPH 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 ENPH stock valuation?
PE ratio gives a quick relative read — how ENPH 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 ENPH 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 ENPH with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic 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.