SOL PE Ratio & Valuation,Is SOL Overvalued

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 Undervalued zone, suggesting that its current forward PS ratio of 0.49 is considered Undervalued compared with the five-year average of 25.01. The fair price of Emeren Group Ltd (SOL) is between 2.57 to 3.24 according to relative valuation methord. Compared to the current price of 1.94 USD , Emeren Group Ltd is Undervalued By 24.41%.

Relative Value

Fair Zone

2.57-3.24

Current Price：1.94

24.41%

Undervalued

4.08

3.73

EV/EBITDA

Emeren Group Ltd. (SOL) has a current EV/EBITDA of 3.73. The 5-year average EV/EBITDA is 11.24. The thresholds are as follows: Strongly Undervalued below -13.33, Undervalued between -13.33 and -1.05, Fairly Valued between 23.53 and -1.05, Overvalued between 23.53 and 35.82, and Strongly Overvalued above 35.82. The current Forward EV/EBITDA of 3.73 falls within the Historic Trend Line -Fairly Valued range.

6.43

EV/EBIT

Emeren Group Ltd. (SOL) has a current EV/EBIT of 6.43. The 5-year average EV/EBIT is 8.25. The thresholds are as follows: Strongly Undervalued below -111.95, Undervalued between -111.95 and -51.85, Fairly Valued between 68.35 and -51.85, Overvalued between 68.35 and 128.45, and Strongly Overvalued above 128.45. The current Forward EV/EBIT of 6.43 falls within the Historic Trend Line -Fairly Valued range.

0.49

Emeren Group Ltd. (SOL) has a current PS of 0.49. The 5-year average PS is 2.68. The thresholds are as follows: Strongly Undervalued below -4.03, Undervalued between -4.03 and -0.68, Fairly Valued between 6.03 and -0.68, Overvalued between 6.03 and 9.39, and Strongly Overvalued above 9.39. The current Forward PS of 0.49 falls within the Historic Trend Line -Fairly Valued range.

1.93

P/OCF

Emeren Group Ltd. (SOL) has a current P/OCF of 1.93. The 5-year average P/OCF is 16.91. The thresholds are as follows: Strongly Undervalued below -300.84, Undervalued between -300.84 and -141.96, Fairly Valued between 175.78 and -141.96, Overvalued between 175.78 and 334.66, and Strongly Overvalued above 334.66. The current Forward P/OCF of 1.93 falls within the Historic Trend Line -Fairly Valued range.

-1.19

P/FCF

Emeren Group Ltd. (SOL) has a current P/FCF of -1.19. The 5-year average P/FCF is -13.85. The thresholds are as follows: Strongly Undervalued below -66.94, Undervalued between -66.94 and -40.40, Fairly Valued between 12.69 and -40.40, Overvalued between 12.69 and 39.23, and Strongly Overvalued above 39.23. The current Forward P/FCF of -1.19 falls within the Historic Trend Line -Fairly Valued range.

Emeren Group Ltd (SOL) has a current Price-to-Book (P/B) ratio of 0.00. Compared to its 3-year average P/B ratio of 0.41 , the current P/B ratio is approximately -100.00% higher. Relative to its 5-year average P/B ratio of 0.97, the current P/B ratio is about -100.00% 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 -24.12%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of -16.66% , the current FCF yield is about -100.00% lower.

0.00

P/B

Median3y

0.41

Median5y

0.97

0.00

FCF Yield

Median3y

-24.12

Median5y

-16.66

Competitors Valuation Multiple

The average P/S ratio for SOL's competitors is 0.13, providing a benchmark for relative valuation. Emeren Group Ltd Corp (SOL) exhibits a P/S ratio of 0.49, which is 289.97% above the industry average. Given its robust revenue growth of 21.63%, this premium appears sustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of SOL increased by 3.74% over the past 1 year. The primary factor behind the change was an decrease in P/E Change from 0.00 to 0.00.

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.

21.63%

12.86M → 15.64M

Revenue Growth

-49.73%

44.12 → 22.18

Margin Expansion

31.84%

0.00 → 0.00

P/E Change

3.74%

1.87 → 1.94

Mkt Cap Growth

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Frequently Asked Questions

Is Emeren Group Ltd (SOL) currently overvalued or undervalued?

What is Emeren Group Ltd (SOL) fair value?

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. The fair price of Emeren Group Ltd (SOL) is between 2.57 to 3.24 according to relative valuation methord.

How does SOL's valuation metrics compare to the industry average?

What is the current P/B ratio for Emeren Group Ltd (SOL) as of Jan 08 2026?

As of Jan 08 2026, Emeren Group Ltd (SOL) has a P/B ratio of 0.00. This indicates that the market values SOL at 0.00 times its book value.

What is the current FCF Yield for Emeren Group Ltd (SOL) as of Jan 08 2026?

As of Jan 08 2026, Emeren Group Ltd (SOL) has a FCF Yield of 0.00%. This means that for every dollar of Emeren Group Ltd’s market capitalization, the company generates 0.00 cents in free cash flow.

What is the current Forward P/E ratio for Emeren Group Ltd (SOL) as of Jan 08 2026?

As of Jan 08 2026, Emeren Group Ltd (SOL) has a Forward P/E ratio of 4.08. This means the market is willing to pay $4.08 for every dollar of Emeren Group Ltd’s expected earnings over the next 12 months.

What is the current Forward P/S ratio for Emeren Group Ltd (SOL) as of Jan 08 2026?

As of Jan 08 2026, Emeren Group Ltd (SOL) has a Forward P/S ratio of 0.49. This means the market is valuing SOL at $0.49 for every dollar of expected revenue over the next 12 months.

SOL Valuation