SEDG Relative Valuation
SEDG's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, SEDG is overvalued; if below, it's undervalued.
Historical Valuation
Solaredge Technologies Inc (SEDG) is now in the Undervalued zone, suggesting that its current forward PS ratio of 1.44 is considered Undervalued compared with the five-year average of 9.23. The fair price of Solaredge Technologies Inc (SEDG) is between 63.33 to 138.67 according to relative valuation methord. Compared to the current price of 30.77 USD , Solaredge Technologies Inc is Undervalued By 51.41%.
Relative Value
Fair Zone
63.33-138.67
Current Price：30.77
51.41%
Undervalued
-155.25
PE
1Y
3Y
5Y
-4547.33
EV/EBITDA
Solaredge Technologies Inc. (SEDG) has a current EV/EBITDA of -4547.33. The 5-year average EV/EBITDA is -257.65. The thresholds are as follows: Strongly Undervalued below -3036.33, Undervalued between -3036.33 and -1646.99, Fairly Valued between 1131.69 and -1646.99, Overvalued between 1131.69 and 2521.03, and Strongly Overvalued above 2521.03. The current Forward EV/EBITDA of -4547.33 falls within the Strongly Undervalued range.
-12.34
EV/EBIT
Solaredge Technologies Inc. (SEDG) has a current EV/EBIT of -12.34. The 5-year average EV/EBIT is 31.05. The thresholds are as follows: Strongly Undervalued below -60.90, Undervalued between -60.90 and -14.92, Fairly Valued between 77.03 and -14.92, Overvalued between 77.03 and 123.00, and Strongly Overvalued above 123.00. The current Forward EV/EBIT of -12.34 falls within the Historic Trend Line -Fairly Valued range.
1.44
PS
Solaredge Technologies Inc. (SEDG) has a current PS of 1.44. The 5-year average PS is 3.66. The thresholds are as follows: Strongly Undervalued below -0.73, Undervalued between -0.73 and 1.47, Fairly Valued between 5.86 and 1.47, Overvalued between 5.86 and 8.06, and Strongly Overvalued above 8.06. The current Forward PS of 1.44 falls within the Undervalued range.
16.78
P/OCF
Solaredge Technologies Inc. (SEDG) has a current P/OCF of 16.78. The 5-year average P/OCF is 37.26. The thresholds are as follows: Strongly Undervalued below -34.63, Undervalued between -34.63 and 1.31, Fairly Valued between 73.20 and 1.31, Overvalued between 73.20 and 109.15, and Strongly Overvalued above 109.15. The current Forward P/OCF of 16.78 falls within the Historic Trend Line -Fairly Valued range.
17.53
P/FCF
Solaredge Technologies Inc. (SEDG) has a current P/FCF of 17.53. The 5-year average P/FCF is -0.13. The thresholds are as follows: Strongly Undervalued below -160.02, Undervalued between -160.02 and -80.08, Fairly Valued between 79.82 and -80.08, Overvalued between 79.82 and 159.76, and Strongly Overvalued above 159.76. The current Forward P/FCF of 17.53 falls within the Historic Trend Line -Fairly Valued range.
Solaredge Technologies Inc (SEDG) has a current Price-to-Book (P/B) ratio of 3.89. Compared to its 3-year average P/B ratio of 2.99 , the current P/B ratio is approximately 30.34% higher. Relative to its 5-year average P/B ratio of 6.08, the current P/B ratio is about -35.95% higher. Solaredge Technologies Inc (SEDG) has a Forward Free Cash Flow (FCF) yield of approximately 3.36%. Compared to its 3-year average FCF yield of -18.54%, the current FCF yield is approximately -118.12% lower. Relative to its 5-year average FCF yield of -11.12% , the current FCF yield is about -130.21% lower.
3.89
P/B
Median3y
2.99
Median5y
6.08
3.36
FCF Yield
Median3y
-18.54
Median5y
-11.12
Competitors Valuation Multiple
The average P/S ratio for SEDG's competitors is 7.78, providing a benchmark for relative valuation. Solaredge Technologies Inc Corp (SEDG) exhibits a P/S ratio of 1.44, which is -81.5% above the industry average. Given its robust revenue growth of 44.49%, this premium appears sustainable.
Performance Decomposition
1Y
3Y
5Y
Market capitalization of SEDG increased by 134.92% over the past 1 year. The primary factor behind the change was an decrease in P/E Change from -1.13 to -3.26.
The secondary factor is the Revenue Growth, contributed 44.49%to the performance.
Overall, the performance of SEDG in the past 1 year is driven by P/E Change. Which is more unsustainable.
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Frequently Asked Questions
Is Solaredge Technologies Inc (SEDG) currently overvalued or undervalued?
Solaredge Technologies Inc (SEDG) is now in the Undervalued zone, suggesting that its current forward PS ratio of 1.44 is considered Undervalued compared with the five-year average of 9.23. The fair price of Solaredge Technologies Inc (SEDG) is between 63.33 to 138.67 according to relative valuation methord. Compared to the current price of 30.77 USD , Solaredge Technologies Inc is Undervalued By 51.41% .
What is Solaredge Technologies Inc (SEDG) fair value?
SEDG's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average , adjusted by weights. The fair price of Solaredge Technologies Inc (SEDG) is between 63.33 to 138.67 according to relative valuation methord.
How does SEDG's valuation metrics compare to the industry average?
The average P/S ratio for SEDG's competitors is 7.78, providing a benchmark for relative valuation. Solaredge Technologies Inc Corp (SEDG) exhibits a P/S ratio of 1.44, which is -81.50% above the industry average. Given its robust revenue growth of 44.49%, this premium appears sustainable.
What is the current P/B ratio for Solaredge Technologies Inc (SEDG) as of Jan 08 2026?
As of Jan 08 2026, Solaredge Technologies Inc (SEDG) has a P/B ratio of 3.89. This indicates that the market values SEDG at 3.89 times its book value.
What is the current FCF Yield for Solaredge Technologies Inc (SEDG) as of Jan 08 2026?
As of Jan 08 2026, Solaredge Technologies Inc (SEDG) has a FCF Yield of 3.36%. This means that for every dollar of Solaredge Technologies Inc’s market capitalization, the company generates 3.36 cents in free cash flow.
What is the current Forward P/E ratio for Solaredge Technologies Inc (SEDG) as of Jan 08 2026?
As of Jan 08 2026, Solaredge Technologies Inc (SEDG) has a Forward P/E ratio of -155.25. This means the market is willing to pay $-155.25 for every dollar of Solaredge Technologies Inc’s expected earnings over the next 12 months.
What is the current Forward P/S ratio for Solaredge Technologies Inc (SEDG) as of Jan 08 2026?
As of Jan 08 2026, Solaredge Technologies Inc (SEDG) has a Forward P/S ratio of 1.44. This means the market is valuing SEDG at $1.44 for every dollar of expected revenue over the next 12 months.