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Solaredge Technologies Inc – Semiconductor and Related Device Manufacturing
SolarEdge is a global leader in smart energy technology. By leveraging world-class engineering capabilities and with a relentless focus on innovation, SolarEdge creates smart energy solutions that power lives aof people and drive future progress. SolarEdge developed an intelligent inverter solution that changed the way power is harvested and managed in photovoltaic (PV) systems. The SolarEdge DC optimized inverter seeks to maximize power generation while lowering the cost of energy produced by the PV system. Continuing to advance smart energy, SolarEdge addresses a broad range of energy market segments through its PV, storage, EV charging, batteries, UPS, electric vehicle powertrains, and grid services solutions.
Analysis Results
Intrinsic Value $149.80
Latest Price $249.58
Relative Value 67% overvalued
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Cash Flow (Billions)
Analysis Parameters
New Ticker
Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 30.1%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 11.3%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 30.1%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (billion) Present value (billion)
2022 0.365 0.328
2023 0.476 0.384
2024 0.619 0.448
2025 0.805 0.524
2026 1.05 0.612
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 11.4 billion. This corresponds to a present value of 6.0 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 2.3 billion. Adding in the terminal value gives a total present value of 8.3 billion.

There are presently 55.4 million outstanding shares, so the intrinsic value per share is 149.8.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 1,711,291,000
Current Cash 697,817,000
Current Liabilities 525,181,000
Current Debt 148,000
Non-Cash Working Capital (NCWC) 488,441,000
Change in NCWC 219,234,000
EBIT 208,489,000
Tax Provision 18,054,000
Depreciation and Amortization 39,535,000
Capital Expenditure -149,251,000
Unlevered Free Cash Flow 297,902,417
Current Assets 1,719,341,000
Current Cash 1,030,929,000
Current Liabilities 436,099,000
Current Debt 16,894,000
Non-Cash Working Capital (NCWC) 269,207,000
Change in NCWC 78,241,000
EBIT 139,132,000
Tax Provision 23,344,000
Depreciation and Amortization 31,834,000
Capital Expenditure -126,790,000
Unlevered Free Cash Flow 102,572,332
Current Assets 932,763,000
Current Cash 320,756,000
Current Liabilities 436,714,000
Current Debt 15,673,000
Non-Cash Working Capital (NCWC) 190,966,000
Change in NCWC 38,246,000
EBIT 200,115,000
Tax Provision 33,646,000
Depreciation and Amortization 26,895,000
Capital Expenditure -72,562,000
Unlevered Free Cash Flow 154,995,477
Current Assets 678,113,000
Current Cash 316,314,000
Current Liabilities 225,718,000
Current Debt 16,639,000
Non-Cash Working Capital (NCWC) 152,720,000
Change in NCWC 46,215,000
EBIT 139,420,000
Tax Provision 9,077,000
Depreciation and Amortization 12,619,000
Capital Expenditure -38,608,000
Unlevered Free Cash Flow 150,416,947
Current Assets 476,686,000
Current Cash 240,427,000
Current Liabilities 129,754,000
Current Debt 0
Non-Cash Working Capital (NCWC) 106,505,000
Change in NCWC 17,221,000
EBIT 91,086,000
Tax Provision 16,072,000
Depreciation and Amortization 7,155,000
Capital Expenditure -21,382,000
Unlevered Free Cash Flow 79,476,291
Current Assets 309,750,000
Current Cash 133,195,000
Current Liabilities 87,271,000
Current Debt 0
Non-Cash Working Capital (NCWC) 89,284,000
Change in NCWC 49,214,000
EBIT 71,759,000
Tax Provision -4,379,000
Depreciation and Amortization 3,847,000
Capital Expenditure -15,690,000
Unlevered Free Cash Flow 109,130,000

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