X
<

Shining Some Light on First Solar

PART:
1 2 3 4 5 6 7 8 9 10 11 12
Part 11
Shining Some Light on First Solar PART 11 OF 12

First Solar: A Guide to Valuation

Relative valuation

PE (price-to-earnings) and EV-to-EBITDA multiples are commonly used to determine relative valuation. The forward PE multiple considers a company’s equity based on earnings forecasts for the next 12 months. On September 29, 2017, First Solar’s forward PE multiple was reported to be 21.9x. This PE multiple was higher than JA Solar’s (JASO) 9.1x and Canadian Solar’s (CSIQ) 10.4x, and much lower than Jinko Solar’s (JKS) 52.2x.

First Solar: A Guide to Valuation

Interested in JASO? Don't miss the next report.

Receive e-mail alerts for new research on JASO

Success! You are now receiving e-mail alerts for new research. A temporary password for your new Market Realist account has been sent to your e-mail address.

Success! has been added to your Ticker Alerts.

Success! has been added to your Ticker Alerts. Subscriptions can be managed in your user profile.

Forward EV-to-EBITDA

EV-to-EBITDA multiples are used in capital-intensive industries such as solar power (TAN), coal mining, and automotive. On September 29, 2017, First Solar had a next-12-month forward EV-to-EBITDA multiple of 8.6x, whereas SunPower’s (SPWR) was 35.9x, and Canadian Solar’s was 11.5x.

Analyst recommendations

Of the 18 analysts covering First Solar, three (16.7%) have recommended “buy,” six (33.3%) have recommended “hold,” and nine (50%) have recommended “sell.” Whereas its consensus target price for the next 12 months is $53.98, its stock price was $46.14 on September 28, 2017, denoting an upside potential of 16.1%. In the next and final part of this series, we’ll discuss First Solar’s performance this year.

X

Please select a profession that best describes you: