SOL Valuation

Emeren Group Ltd

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1.880

-0.02(-1.053%)1D

Overview
Forecast
Valuation
Earnings

SOL Relative Valuation

SOL'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, SOL is overvalued; if below, it's undervalued.

Historical Valuation

Emeren Group Ltd (SOL) is now in the Overvalued zone, suggesting that its current forward PS ratio of 1.11 is considered Overvalued compared with the five-year average of 25.64. The fair price of Emeren Group Ltd (SOL) is between 1.11 to 1.54 according to relative valuation methord. Compared to the current price of 1.88 USD , Emeren Group Ltd is Overvalued By 22.45%.

Relative Value

Fair Zone

1.11-1.54

Current Price：1.88

22.45%

Overvalued

94.00

Trailing

Forward

8.83

EV/EBITDA

Emeren Group Ltd. (SOL) has a current EV/EBITDA of 8.83. The 5-year average EV/EBITDA is 12.31. The thresholds are as follows: Strongly Undervalued below -12.39, Undervalued between -12.39 and -0.04, Fairly Valued between 24.66 and -0.04, Overvalued between 24.66 and 37.00, and Strongly Overvalued above 37.00. The current Forward EV/EBITDA of 8.83 falls within the Historic Trend Line -Fairly Valued range.

89.88

EV/EBIT

Emeren Group Ltd. (SOL) has a current EV/EBIT of 89.88. The 5-year average EV/EBIT is 10.14. The thresholds are as follows: Strongly Undervalued below -109.28, Undervalued between -109.28 and -49.57, Fairly Valued between 69.86 and -49.57, Overvalued between 69.86 and 129.57, and Strongly Overvalued above 129.57. The current Forward EV/EBIT of 89.88 falls within the Overvalued range.

1.11

Emeren Group Ltd. (SOL) has a current PS of 1.11. The 5-year average PS is 2.78. The thresholds are as follows: Strongly Undervalued below -3.93, Undervalued between -3.93 and -0.58, Fairly Valued between 6.13 and -0.58, Overvalued between 6.13 and 9.48, and Strongly Overvalued above 9.48. The current Forward PS of 1.11 falls within the Historic Trend Line -Fairly Valued range.

2.06

P/OCF

Emeren Group Ltd. (SOL) has a current P/OCF of 2.06. The 5-year average P/OCF is 14.17. The thresholds are as follows: Strongly Undervalued below -304.98, Undervalued between -304.98 and -145.41, Fairly Valued between 173.74 and -145.41, Overvalued between 173.74 and 333.32, and Strongly Overvalued above 333.32. The current Forward P/OCF of 2.06 falls within the Historic Trend Line -Fairly Valued range.

-2.61

P/FCF

Emeren Group Ltd. (SOL) has a current P/FCF of -2.61. The 5-year average P/FCF is -14.20. The thresholds are as follows: Strongly Undervalued below -67.40, Undervalued between -67.40 and -40.80, Fairly Valued between 12.40 and -40.80, Overvalued between 12.40 and 39.00, and Strongly Overvalued above 39.00. The current Forward P/FCF of -2.61 falls within the Historic Trend Line -Fairly Valued range.

Emeren Group Ltd (SOL) has a current Price-to-Book (P/B) ratio of 0.32. Compared to its 3-year average P/B ratio of 0.49 , the current P/B ratio is approximately -35.29% higher. Relative to its 5-year average P/B ratio of 1.12, the current P/B ratio is about -71.66% higher. Emeren Group Ltd (SOL) has a Forward Free Cash Flow (FCF) yield of approximately -15.33%. Compared to its 3-year average FCF yield of -27.44%, the current FCF yield is approximately -44.13% lower. Relative to its 5-year average FCF yield of -16.57% , the current FCF yield is about -7.46% lower.

0.32

P/B

Median3y

0.49

Median5y

1.12

-15.33

FCF Yield

Median3y

-27.44

Median5y

-16.57

Competitors Valuation Multiple

The average P/S ratio for SOL's competitors is 0.43, providing a benchmark for relative valuation. Emeren Group Ltd Corp (SOL) exhibits a P/S ratio of 1.11, which is 160.50% above the industry average. Given its robust revenue growth of -44.15%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

JFB Construction Holdings

OneConstruction Group Ltd

Performance Decomposition

Market capitalization of SOL increased by 3.87% over the past 1 year. The primary factor behind the change was an decrease in P/E Change from -6.49 to -19.24.

The secondary factor is the Revenue Growth, contributed -44.15%to the performance.

Overall, the performance of SOL in the past 1 year is driven by P/E Change. Which is more unsustainable.

-44.15%

14.60M → 8.15M

Revenue Growth

-148.26%

-37.59 → 18.14

Margin Expansion

196.28%

-6.49 → -19.24

P/E Change

3.87%