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    Assessing SolarEdge Technologies (SEDG) Valuation As Earnings Approach And Analyst Views Shift

    Simply Wall St·02/04/2026 16:30:00
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    Investor attention around SolarEdge Technologies (SEDG) is building as the company approaches its next earnings release, with recent estimate revisions pointing to changing views on its near term business trends.

    See our latest analysis for SolarEdge Technologies.

    At a share price of US$30.97, SolarEdge has seen a 1 day share price return of 1.08%, alongside a 90 day share price return decline of 24.5%, even as its 1 year total shareholder return of about 1.2x suggests a sharp rebound from earlier multi year losses.

    If SolarEdge’s recent swings have you thinking about where else capital could work, it may be a good time to scan high growth tech and AI stocks as another way to spot potential opportunities in related themes.

    With the stock still well below its multi year highs yet up about 1.2x over the past year, the key question is whether SolarEdge is now trading at a discount or if the market is already pricing in future growth.

    Most Popular Narrative: 6.5% Undervalued

    With SolarEdge closing at $30.97 against a narrative fair value of $33.13, the current setup frames a modest valuation gap that hinges on execution in new growth areas and margin repair.

    The Q3 beat and commentary around better margin trends, including expectations for strong margins even alongside mixed revenue expectations, are central to more constructive views on the turnaround and earnings power.

    Read the complete narrative.

    Curious what is baked into that fair value gap? The narrative leans on firm revenue growth assumptions, gradual margin repair, and a future earnings multiple that many usually associate with established growth names. Want to see how those moving parts fit together and what has to go right for the numbers to line up?

    Result: Fair Value of $33.13 (UNDERVALUED)

    Have a read of the narrative in full and understand what's behind the forecasts.

    However, there are still a few pressure points, including potential weakness in U.S. residential solar and ongoing pricing competition, that could easily upset this turnaround story.

    Find out about the key risks to this SolarEdge Technologies narrative.

    Another View: Cash Flows Paint a Tougher Picture

    While the narrative fair value of $33.13 suggests SolarEdge is 6.5% undervalued, the SWS DCF model points the other way. With an estimate of future cash flow value at $22.13 versus a share price of $30.97, it signals the stock may be overvalued on cash flow assumptions. Which story do you think is closer to how the business will actually perform?

    Look into how the SWS DCF model arrives at its fair value.

    SEDG Discounted Cash Flow as at Feb 2026
    SEDG Discounted Cash Flow as at Feb 2026

    Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out SolarEdge Technologies for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 867 undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

    Build Your Own SolarEdge Technologies Narrative

    If you are not fully on board with these views or simply prefer to test the numbers yourself, you can build a custom SolarEdge story in just a few minutes, starting with Do it your way.

    A great starting point for your SolarEdge Technologies research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.

    Ready to hunt for more investment ideas?

    If SolarEdge is only one piece of your watchlist puzzle, now is the moment to widen your search and see what else could deserve your attention.

    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.