Assessing Enphase Energy (ENPH) After Sharp Short-Term Gains And Longer-Term Share Price Declines

Simply Wall St.01-25

If you are wondering whether Enphase Energy's share price actually reflects its underlying value, you are not alone. That is exactly what this article will help you assess. The stock last closed at US...

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The stock last closed at US...</p>\n\n<a href=\"https://simplywall.st/stocks/us/semiconductors/nasdaq-enph/enphase-energy/news/assessing-enphase-energy-enph-after-sharp-short-term-gains-a\">Source Link</a>\n\n</div>\n","source":"simplywall_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Assessing Enphase Energy (ENPH) After Sharp Short-Term Gains And Longer-Term Share Price Declines</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nAssessing Enphase Energy (ENPH) After Sharp Short-Term Gains And Longer-Term Share Price Declines\n</h2>\n\n<h4 class=\"meta\">\n\n\n2026-01-25 07:20 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/us/semiconductors/nasdaq-enph/enphase-energy/news/assessing-enphase-energy-enph-after-sharp-short-term-gains-a><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>If you are wondering whether Enphase Energy's share price actually reflects its underlying value, you are not alone. That is exactly what this article will help you assess. The stock last closed at US...</p>\n\n<a href=\"https://simplywall.st/stocks/us/semiconductors/nasdaq-enph/enphase-energy/news/assessing-enphase-energy-enph-after-sharp-short-term-gains-a\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"LU2294711713.HKD","symbol_name":"BNP PARIBAS ENERGY TRANSITION \"C\" (HKD) ACC","start_time":0,"source_url":"https://simplywall.st/stocks/us/semiconductors/nasdaq-enph/enphase-energy/news/assessing-enphase-energy-enph-after-sharp-short-term-gains-a","article_id":"2606258657","we_media_id":null,"thumbnails":["https://images.simplywall.st/asset/industry/8211000-choice1-main-header/1585186899663"],"rights":{"source":"simplywall_highlight","url":"https://simplywall.st/stocks/us/semiconductors/nasdaq-enph/enphase-energy/news/assessing-enphase-energy-enph-after-sharp-short-term-gains-a","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2606258657","pubTimestamp":1769296830,"columns":[],"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"If you are wondering whether Enphase Energy's share price actually reflects its underlying value, you are not alone. That is exactly what this article will help you assess.\nThe stock last closed at US$39.46, with returns of 12.8% over 7 days and 20.1% over 30 days, while the 1-year return of a 37.7% decline and 3-year and 5-year returns of 81.2% and 78.4% declines tell a very different story.\nRecent coverage of Enphase has focused on its position in the solar and semiconductor space and how...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":[],"viewcount":null,"language":"en","relate_stocks":{"LU2294711713.HKD":"BNP PARIBAS ENERGY TRANSITION \"C\" (HKD) ACC","BK4585":"ETF&股票定投概念","LU0823414551.USD":"BNP PARIBAS ENERGY TRANSITION \"C\" (USD) INC","LU0823414478.USD":"法巴经典能源转换基金","LU2357125470.USD":"BNP PARIBAS ENERGY TRANSITION \"CLASSIC RH\" (USDHDG) ACC","ENPH":"Enphase Energy","IE00BN0W2W23.USD":"GUINNESS SUSTAINABLE GLOBAL EQUITY \"C\" (USD) ACC","BK4596":"哈里斯概念","IE00BN0W2V16.EUR":"GUINNESS SUSTAINABLE GLOBAL EQUITY \"C\" (EUR) ACC","LU2357305700.SGD":"Allianz Global Artificial Intelligence ET H2-SGD","BK4588":"碎股","LU0082616367.USD":"摩根大通美国科技A（dist）","LU0719512351.SGD":"JPMorgan Funds - US Technology A (acc) SGD","IE00BN0W2T93.GBP":"GUINNESS SUSTAINABLE GLOBAL EQUITY \"C\" (GBP) ACC","BK4147":"半导体设备","LU0348723411.USD":"ALLIANZ GLOBAL HI-TECH GROWTH \"A\" (USD) INC","DCF":"Dreyfus Alcentra Global Credit Income 2024 Target Term Fund, Inc","LU1720051108.HKD":"ALLIANZ GLOBAL ARTIFICIAL INTELLIGENCE \"AT\" (HKD) ACC","LU1720051017.SGD":"Allianz Global Artificial Intelligence AT Acc H2-SGD","LU2249611893.SGD":"BNP PARIBAS ENERGY TRANSITION \"CRH\" (SGD) ACC","LU1983299162.USD":"SCHRODER ISF GLOBAL ENERGY TRANSITION \"A\" (USD) ACC","LU2506951792.HKD":"BNP PARIBAS ENERGY TRANSITION \"CRH\" (HKDHDG)       ACC","LU1548497426.USD":"安联环球人工智能AT Acc"},"translate_title":"在短期大幅上涨和长期股价下跌后评估Enphase Energy(ENPH)","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"DCF":1,"ENPH":1.5},"content_text":"If you are wondering whether Enphase Energy's share price actually reflects its underlying value, you are not alone. That is exactly what this article will help you assess. The stock last closed at US$39.46, with returns of 12.8% over 7 days and 20.1% over 30 days, while the 1-year return of a 37.7% decline and 3-year and 5-year returns of 81.2% and 78.4% declines tell a very different story. Recent coverage of Enphase has focused on its position in the solar and semiconductor space and how sentiment towards the sector has been shifting. This has given investors more context for these sharp moves in both directions. Together, this mix of short-term gains and longer-term declines has put valuation front and center for many shareholders. Enphase currently has a value score of 3/6, which means it screens as undervalued on half of the checks we will be talking through next. We will also look at a way of thinking about valuation that goes beyond any single model by the end of the article.  Find out why Enphase Energy's -37.7% return over the last year is lagging behind its peers. AdvertisementApproach 1: Enphase Energy Discounted Cash Flow (DCF) Analysis A Discounted Cash Flow, or DCF, model estimates what a company could be worth today by projecting its future cash flows and then discounting those back to a present value. It is essentially asking what future cash the business might generate and what that stream is worth in today's dollars. For Enphase Energy, the model used is a 2 Stage Free Cash Flow to Equity approach. The company’s last twelve months free cash flow is about $203.4 million. Analyst based and extrapolated projections from Simply Wall St see annual free cash flows between 2026 and 2035 in a range of roughly $332.5 million to $479.2 million, with a projected $440.9 million in 2030. When all those projected cash flows are discounted back, the DCF model arrives at an estimated intrinsic value of about $33.06 per share. Compared with the recent share price of $39.46, this implies the stock screens as around 19.4% overvalued on this method. Result: OVERVALUED Our Discounted Cash Flow (DCF) analysis suggests Enphase Energy may be overvalued by 19.4%. Discover 862 undervalued stocks or create your own screener to find better value opportunities. ENPH Discounted Cash Flow as at Jan 2026 Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Enphase Energy. Approach 2: Enphase Energy Price vs Earnings For a company that is generating earnings, the P/E ratio is often a useful yardstick because it links what you pay per share to what the business is currently earning per share. The P/E that investors are usually willing to pay tends to reflect a mix of expected earnings growth and perceived risk, with higher growth or lower risk often supporting a higher “normal” P/E, and the opposite holding that multiple down. Enphase Energy currently trades on a P/E of 26.4x. That sits below the broader Semiconductor industry average of 40.8x and the peer group average of 78.0x. This suggests the market is applying a lower earnings multiple to Enphase than to many of its listed peers. Simply Wall St’s Fair Ratio for Enphase is 30.0x, which is a proprietary estimate of what a suitable P/E might be given the company’s earnings profile, industry, profit margins, market capitalization and risk characteristics. Compared with simple peer or industry comparisons, the Fair Ratio aims to be more tailored because it adjusts for factors that can skew plain P/E averages. Setting the current 26.4x P/E against the 30.0x Fair Ratio, Enphase screens as modestly undervalued on this metric. Result: UNDERVALUED NasdaqGM:ENPH P/E Ratio as at Jan 2026 P/E ratios tell one story, but what if the real opportunity lies elsewhere? Discover 1421 companies where insiders are betting big on explosive growth. Upgrade Your Decision Making: Choose your Enphase Energy Narrative Earlier we mentioned that there is an even better way to understand valuation, so let us introduce you to Narratives, which let you attach a simple story to your numbers by linking your view of Enphase Energy’s future revenue, earnings and margins to a forecast and then to a fair value estimate. On Simply Wall St’s Community page, used by millions of investors, Narratives are an easy tool that lets you set your own assumptions, see the fair value that results from those inputs, and then compare that fair value with the current share price to help you decide whether Enphase looks attractive or expensive to you. Because Narratives update automatically when new information such as company news or earnings is added to the platform, your story, forecast and fair value stay aligned with the latest data instead of becoming a one off exercise that quickly goes out of date. For example, one Enphase Narrative might assume very strong revenue growth and high profit margins that support a higher fair value. Another might assume slower growth and more modest margins that support a lower fair value. This shows how two investors can look at the same stock and reach different conclusions. Do you think there's more to the story for Enphase Energy? Head over to our Community to see what others are saying! NasdaqGM:ENPH 1-Year Stock Price Chart  This article by Simply Wall St is general in nature. We provide commentary based on historical data\n    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\n    financial situation. We aim to bring you long-term focused analysis driven by fundamental data.\n    Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.\n    Simply Wall St has no position in any stocks mentioned.Valuation is complex, but we're here to simplify it.Discover if Enphase Energy might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.Access Free AnalysisHave feedback on this article? Concerned about the content? Get in touch with us directly. 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