SolarEdge Technologies, Inc.

SEDG

EnergySolarNASDAQ

$38.61

Market Cap: $2.35B

SolarEdge Technologies, Inc. (SEDG) Valuation Summary

Updated May 11, 2026 21:20

Model	Range	Fair Value	Upside
▸ Discounted Cash Flow
Revenue DCF 5Y	$0.46 – $51.05	$3.50	-90.9%
Revenue DCF 10Y	$0.44 – $53.33	$11.23	-70.9%
▸ Trading Multiples
EV/Revenue	$16.92 – $63.20	$37.02	-4.1%

Valuation History

DCF Analysis

SolarEdge Technologies, Inc. (SEDG) Revenue DCF (5Y)

REVENUE DCF FAIR VALUE

$11.23

Market Price

$38.61

Upside / Downside

-70.9%

Verdict

Overvalued

Using a Revenue DCF model with operating margin convergence from -24.1% to a target of 15.7% over 5 years, discounted at a WACC of 8.1%, SolarEdge Technologies, Inc. (SEDG) has an intrinsic value of $11.23 per share (range: $0.44 – $53.33).

Key Assumptions

Current Operating Margin

-24.1%

Target Operating Margin

15.7%

WACC

8.1%

Terminal Growth Rate

3.0%

Historical CapEx/Rev

6.6%

Target CapEx/Rev

6.0%

D&A/Revenue

3.0%

Tax Rate

38.1%

Operating margin fades linearly from the current level to the industry target over the 5-year projection. CapEx intensity fades from the historical average to a maintenance level (D&A × 1.5). Tax is only applied when operating income is positive (NOL shield).

Margin Convergence Projection

USD in millions. Mid-year discounting convention.

Year	Revenue	Growth	Op Margin	Op Income	NOPAT	D&A	CapEx	ΔNWC	FCFF	PV(FCFF)
2026	1,389	17.3%	-16.1%	-224	-224	41	(90)	239	-512	-493
2027	1,573	13.2%	-8.2%	-129	-129	46	(101)	104	-288	-256
2028	1,714	8.9%	-0.2%	-4	-4	51	(109)	80	-143	-117
2029	1,877	9.5%	7.7%	145	90	55	(119)	92	-66	-50
2030	1,993	6.2%	15.7%	312	194	59	(125)	66	61	43
2031	1,806	-9.4%	15.7%	283	175	53	(112)	-106	222	145
2032	1,681	-6.9%	15.7%	264	163	50	(104)	-71	180	109
2033	1,607	-4.4%	15.7%	252	156	47	(98)	-42	147	82
2034	1,575	-2.0%	15.7%	247	153	46	(95)	-18	122	63
2035	1,583	0.5%	15.7%	248	154	47	(95)	5	101	48

Enterprise Value Bridge

Sum of PV(FCFF)-426

Terminal Value (Gordon Growth at 3.0%)2,050

PV of Terminal Value981

Enterprise Value556

(–) Net Debt-116

Equity Value672

(÷) Shares Outstanding60

Fair Value per Share$11.23

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	9.7%	12.7%	15.7%	18.7%	21.7%
6.1%	$2	$15	$28	$41	$53
7.1%	$-2	$8	$18	$27	$37
8.1%	$-5	$3	$11	$19	$27
9.1%	$-6	$0	$7	$14	$20
10.1%	$-7	$-2	$4	$10	$15

Current price: $38.61. Green = undervalued, Red = overvalued.

Working Capital Assumption

Net Working Capital is modeled at 56.7% of revenue (historical average of receivables + inventory − payables). Changes in NWC (ΔNWC) are computed year-over-year and subtracted from free cash flow.

SolarEdge Technologies, Inc. (SEDG) Revenue DCF (5Y)

REVENUE DCF FAIR VALUE

$3.50

Market Price

$38.61

Upside / Downside

-90.9%

Verdict

Overvalued

Key Assumptions

Current Operating Margin

-24.1%

Target Operating Margin

15.7%

WACC

8.1%

Terminal Growth Rate

3.0%

Historical CapEx/Rev

6.6%

Target CapEx/Rev

6.0%

D&A/Revenue

3.0%

Tax Rate

38.1%

Margin Convergence Projection

USD in millions. Mid-year discounting convention.

Year	Revenue	Growth	Op Margin	Op Income	NOPAT	D&A	CapEx	ΔNWC	FCFF	PV(FCFF)
2026	1,389	17.3%	-16.1%	-224	-224	41	(89)	239	-512	-492
2027	1,573	13.2%	-8.2%	-129	-129	46	(100)	104	-286	-254
2028	1,714	8.9%	-0.2%	-4	-4	51	(107)	80	-140	-115
2029	1,877	9.5%	7.7%	145	90	55	(115)	92	-62	-47
2030	1,993	6.2%	15.7%	312	194	59	(120)	66	67	47

Enterprise Value Bridge

Sum of PV(FCFF)-862

Terminal Value (Gordon Growth at 3.0%)1,354

PV of Terminal Value955

Enterprise Value93

(–) Net Debt-116

Equity Value209

(÷) Shares Outstanding60

Fair Value per Share$3.50

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	9.7%	12.7%	15.7%	18.7%	21.7%
6.1%	$-16	$-2	$16	$34	$51
7.1%	$-16	$-5	$8	$21	$34
8.1%	$-16	$-7	$4	$14	$24
9.1%	$-16	$-8	$0	$9	$18
10.1%	$-15	$-9	$-2	$6	$13

Current price: $38.61. Green = undervalued, Red = overvalued.

Working Capital Assumption

Net Working Capital is modeled at 56.7% of revenue (historical average of receivables + inventory − payables). Changes in NWC (ΔNWC) are computed year-over-year and subtracted from free cash flow.

Trading Multiples

Fair Value

$37.02

Market Price

$38.61

Upside / Downside

-4.1%

Verdict

Overvalued

Using the industry peer median EV/Revenue multiple (trailing + forward), SolarEdge Technologies, Inc. (SEDG) has a fair value of $37.02 based on 7 comparable companies in the Solar industry.

EV/Revenue Valuation — Solar

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/Revenue	Forward EV/Revenue
SolarEdge Technologies, Inc.SEDG	2,310	1.9x	1.6x
Seadrill LimitedSDRL	2,979	2.3x	2.3x
Calumet, Inc.CLMT	2,784	0.7x	0.7x
Genesis Energy, L.P.GEL	2,004	3.1x	3.2x
Canadian Solar Inc.CSIQ	1,360	1.3x	1.3x
Array Technologies, Inc.ARRY	1,318	1.4x	1.3x
Shoals Technologies Group, Inc.SHLS	1,315	3.1x	2.4x
Ramaco Resources, Inc.METC	829	0.8x	0.6x
Industry Median		1.4x	1.3x
(*) Revenue		1,184	1,389
= Enterprise Value		1,697	2,499
(-) Net Debt		-116	-116
Equity Value		1,814	2,616
(/) Outstanding shares		60	60
Fair Price		$30	$44

Selected Fair Value (avg of trailing + forward)

$37.02

-4.1%

Disclaimer: Sweet Value Lab provides estimated intrinsic values for informational purposes only. This is not financial advice. All models rely on assumptions that may not reflect future performance. Always do your own research before making investment decisions.

Model

Range

Fair Value

Upside

▸ Discounted Cash Flow

Revenue DCF 5Y

$0.46 – $51.05

$3.50

-90.9%

Revenue DCF 10Y

$0.44 – $53.33

$11.23

-70.9%

▸ Trading Multiples

EV/Revenue

$16.92 – $63.20

$37.02

-4.1%

DCF Analysis

SolarEdge Technologies, Inc. (SEDG) Revenue DCF (5Y)

REVENUE DCF FAIR VALUE

$11.23

Market Price

$38.61

Upside / Downside

-70.9%

Verdict

Overvalued

Key Assumptions

Current Operating Margin

-24.1%

Target Operating Margin

15.7%

WACC

8.1%

Terminal Growth Rate

3.0%

Historical CapEx/Rev

6.6%

Target CapEx/Rev

6.0%

D&A/Revenue

3.0%

Tax Rate

38.1%

Margin Convergence Projection

USD in millions. Mid-year discounting convention.

Year	Revenue	Growth	Op Margin	Op Income	NOPAT	D&A	CapEx	ΔNWC	FCFF	PV(FCFF)
2026	1,389	17.3%	-16.1%	-224	-224	41	(90)	239	-512	-493
2027	1,573	13.2%	-8.2%	-129	-129	46	(101)	104	-288	-256
2028	1,714	8.9%	-0.2%	-4	-4	51	(109)	80	-143	-117
2029	1,877	9.5%	7.7%	145	90	55	(119)	92	-66	-50
2030	1,993	6.2%	15.7%	312	194	59	(125)	66	61	43
2031	1,806	-9.4%	15.7%	283	175	53	(112)	-106	222	145
2032	1,681	-6.9%	15.7%	264	163	50	(104)	-71	180	109
2033	1,607	-4.4%	15.7%	252	156	47	(98)	-42	147	82
2034	1,575	-2.0%	15.7%	247	153	46	(95)	-18	122	63
2035	1,583	0.5%	15.7%	248	154	47	(95)	5	101	48

Enterprise Value Bridge

Sum of PV(FCFF)-426

Terminal Value (Gordon Growth at 3.0%)2,050

PV of Terminal Value981

Enterprise Value556

(–) Net Debt-116

Equity Value672

(÷) Shares Outstanding60

Fair Value per Share$11.23

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	9.7%	12.7%	15.7%	18.7%	21.7%
6.1%	$2	$15	$28	$41	$53
7.1%	$-2	$8	$18	$27	$37
8.1%	$-5	$3	$11	$19	$27
9.1%	$-6	$0	$7	$14	$20
10.1%	$-7	$-2	$4	$10	$15

Current price: $38.61. Green = undervalued, Red = overvalued.

Working Capital Assumption

Net Working Capital is modeled at 56.7% of revenue (historical average of receivables + inventory − payables). Changes in NWC (ΔNWC) are computed year-over-year and subtracted from free cash flow.

Trading Multiples

Fair Value

$37.02

Market Price

$38.61

Upside / Downside

-4.1%

Verdict

Overvalued

Using the industry peer median EV/Revenue multiple (trailing + forward), SolarEdge Technologies, Inc. (SEDG) has a fair value of $37.02 based on 7 comparable companies in the Solar industry.

EV/Revenue Valuation — Solar

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/Revenue	Forward EV/Revenue
SolarEdge Technologies, Inc.SEDG	2,310	1.9x	1.6x
Seadrill LimitedSDRL	2,979	2.3x	2.3x
Calumet, Inc.CLMT	2,784	0.7x	0.7x
Genesis Energy, L.P.GEL	2,004	3.1x	3.2x
Canadian Solar Inc.CSIQ	1,360	1.3x	1.3x
Array Technologies, Inc.ARRY	1,318	1.4x	1.3x
Shoals Technologies Group, Inc.SHLS	1,315	3.1x	2.4x
Ramaco Resources, Inc.METC	829	0.8x	0.6x
Industry Median		1.4x	1.3x
(*) Revenue		1,184	1,389
= Enterprise Value		1,697	2,499
(-) Net Debt		-116	-116
Equity Value		1,814	2,616
(/) Outstanding shares		60	60
Fair Price		$30	$44

Selected Fair Value (avg of trailing + forward)

$37.02

-4.1%