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 Fair zone, suggesting that its current forward PS ratio of 0.00 is considered Fairly compared with the five-year average of 25.54. The fair price of Emeren Group Ltd (SOL) is between NaN to NaN according to relative valuation methord.
Relative Value
Fair Zone
NaN-NaN
Current Price：1.94
Fair
7.04
PE
1Y
3Y
5Y
Trailing
Forward
4.03
EV/EBITDA
Emeren Group Ltd. (SOL) has a current EV/EBITDA of 4.03. The 5-year average EV/EBITDA is 11.53. The thresholds are as follows: Strongly Undervalued below -13.39, Undervalued between -13.39 and -0.93, Fairly Valued between 23.99 and -0.93, Overvalued between 23.99 and 36.44, and Strongly Overvalued above 36.44. The current Forward EV/EBITDA of 4.03 falls within the Historic Trend Line -Fairly Valued range.
6.70
EV/EBIT
Emeren Group Ltd. (SOL) has a current EV/EBIT of 6.70. The 5-year average EV/EBIT is 8.74. The thresholds are as follows: Strongly Undervalued below -111.03, Undervalued between -111.03 and -51.15, Fairly Valued between 68.63 and -51.15, Overvalued between 68.63 and 128.52, and Strongly Overvalued above 128.52. The current Forward EV/EBIT of 6.70 falls within the Historic Trend Line -Fairly Valued range.
0.88
PS
Emeren Group Ltd. (SOL) has a current PS of 0.88. The 5-year average PS is 2.73. The thresholds are as follows: Strongly Undervalued below -4.02, Undervalued between -4.02 and -0.65, Fairly Valued between 6.10 and -0.65, Overvalued between 6.10 and 9.48, and Strongly Overvalued above 9.48. The current Forward PS of 0.88 falls within the Historic Trend Line -Fairly Valued range.
2.29
P/OCF
Emeren Group Ltd. (SOL) has a current P/OCF of 2.29. The 5-year average P/OCF is 14.98. The thresholds are as follows: Strongly Undervalued below -303.89, Undervalued between -303.89 and -144.46, Fairly Valued between 174.42 and -144.46, Overvalued between 174.42 and 333.85, and Strongly Overvalued above 333.85. The current Forward P/OCF of 2.29 falls within the Historic Trend Line -Fairly Valued range.
-2.25
P/FCF
Emeren Group Ltd. (SOL) has a current P/FCF of -2.25. The 5-year average P/FCF is -14.04. The thresholds are as follows: Strongly Undervalued below -67.36, Undervalued between -67.36 and -40.70, Fairly Valued between 12.62 and -40.70, Overvalued between 12.62 and 39.28, and Strongly Overvalued above 39.28. The current Forward P/FCF of -2.25 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 0.42 , the current P/B ratio is approximately -24.11% higher. Relative to its 5-year average P/B ratio of 1.03, the current P/B ratio is about -68.97% higher. Emeren Group Ltd (SOL) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of -24.01%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of -16.49% , the current FCF yield is about -100.00% lower.
0.32
P/B
Median3y
0.42
Median5y
1.03
33.99
FCF Yield
Median3y
-24.01
Median5y
-16.49
Competitors Valuation Multiple
The average P/S ratio for SOL's competitors is 0.19, providing a benchmark for relative valuation. Emeren Group Ltd Corp (SOL) exhibits a P/S ratio of 0.88, which is 374.52% above the industry average. Given its robust revenue growth of 21.63%, this premium appears sustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of SOL decreased by 4.43% over the past 1 year. The primary factor behind the change was an decrease in P/E Change from -8.88 to -10.98.
The secondary factor is the Revenue Growth, contributed 21.63%to the performance.
Overall, the performance of SOL in the past 1 year is driven by P/E Change. Which is more unsustainable.
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FAQ
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