Jun. 21 at 1:27 PM
Solar sector is quietly sitting in one of the most compressed valuation setups we’ve seen in years.
What’s interesting is not just the multiples, but the disconnect between pricing and recent operational trends. Several names that were previously in contraction or negative growth territory are now showing low-to-mid double digit recovery growth, yet the market is still pricing them near cyclical trough valuations.
Forward P/S snapshots tell the story:
$NXT around 5.0x
$FSLR around 3.9x
$ENPH around 3.7x
$SHLS around 2.4x
$SEDG around 2.0x
TE around 1.8x
RUN around 1.1x
This is typically the kind of setup where sentiment lags fundamentals, and the market waits for confirmation before re-rating the entire group.
The key question from here is whether this is a value trap or the early stage of a multi-quarter re-rating cycle as growth stabilizes and cost structures reset.
