Stock Analysis on Net

SolarEdge Technologies Inc. (NASDAQ:SEDG)

This company has been moved to the archive! The financial data has not been updated since February 22, 2023.

Capital Asset Pricing Model (CAPM) 

Microsoft Excel

Rates of Return

SolarEdge Technologies Inc., monthly rates of return

Microsoft Excel
SolarEdge Technologies Inc. (SEDG) Standard & Poor’s 500 (S&P 500)
t Date PriceSEDG,t1 DividendSEDG,t1 RSEDG,t2 PriceS&P 500,t RS&P 500,t3
Jan 31, 2018 $35.90 2,823.81
1. Feb 28, 2018 $50.05 39.42% 2,713.83 -3.89%
2. Mar 31, 2018 $52.60 5.09% 2,640.87 -2.69%
3. Apr 30, 2018 $52.65 0.10% 2,648.05 0.27%
. . . . . . .
. . . . . . .
. . . . . . .
58. Nov 30, 2022 $298.86 29.92% 4,080.11 5.38%
59. Dec 31, 2022 $283.27 -5.22% 3,839.50 -5.90%
Average (R): 4.89% 0.67%
Standard deviation: 16.77% 5.40%
SolarEdge Technologies Inc. (SEDG) Standard & Poor’s 500 (S&P 500)
t Date PriceSEDG,t1 DividendSEDG,t1 RSEDG,t2 PriceS&P 500,t RS&P 500,t3
Jan 31, 2018 $35.90 2,823.81
1. Feb 28, 2018 $50.05 39.42% 2,713.83 -3.89%
2. Mar 31, 2018 $52.60 5.09% 2,640.87 -2.69%
3. Apr 30, 2018 $52.65 0.10% 2,648.05 0.27%
4. May 31, 2018 $55.85 6.08% 2,705.27 2.16%
5. Jun 30, 2018 $47.85 -14.32% 2,718.37 0.48%
6. Jul 31, 2018 $53.25 11.29% 2,816.29 3.60%
7. Aug 31, 2018 $47.95 -9.95% 2,901.52 3.03%
8. Sep 30, 2018 $37.65 -21.48% 2,913.98 0.43%
9. Oct 31, 2018 $38.73 2.87% 2,711.74 -6.94%
10. Nov 30, 2018 $38.93 0.52% 2,760.17 1.79%
11. Dec 31, 2018 $35.10 -9.84% 2,506.85 -9.18%
12. Jan 31, 2019 $43.79 24.76% 2,704.10 7.87%
13. Feb 28, 2019 $42.26 -3.49% 2,784.49 2.97%
14. Mar 31, 2019 $37.68 -10.84% 2,834.40 1.79%
15. Apr 30, 2019 $44.30 17.57% 2,945.83 3.93%
16. May 31, 2019 $53.58 20.95% 2,752.06 -6.58%
17. Jun 30, 2019 $62.46 16.57% 2,941.76 6.89%
18. Jul 31, 2019 $65.23 4.43% 2,980.38 1.31%
19. Aug 31, 2019 $81.92 25.59% 2,926.46 -1.81%
20. Sep 30, 2019 $83.72 2.20% 2,976.74 1.72%
21. Oct 31, 2019 $84.96 1.48% 3,037.56 2.04%
22. Nov 30, 2019 $81.61 -3.94% 3,140.98 3.40%
23. Dec 31, 2019 $95.09 16.52% 3,230.78 2.86%
24. Jan 31, 2020 $97.86 2.91% 3,225.52 -0.16%
25. Feb 29, 2020 $124.72 27.45% 2,954.22 -8.41%
26. Mar 31, 2020 $81.88 -34.35% 2,584.59 -12.51%
27. Apr 30, 2020 $111.59 36.28% 2,912.43 12.68%
28. May 31, 2020 $141.90 27.16% 3,044.31 4.53%
29. Jun 30, 2020 $138.78 -2.20% 3,100.29 1.84%
30. Jul 31, 2020 $175.10 26.17% 3,271.12 5.51%
31. Aug 31, 2020 $221.15 26.30% 3,500.31 7.01%
32. Sep 30, 2020 $238.35 7.78% 3,363.00 -3.92%
33. Oct 31, 2020 $257.69 8.11% 3,269.96 -2.77%
34. Nov 30, 2020 $277.98 7.87% 3,621.63 10.75%
35. Dec 31, 2020 $319.12 14.80% 3,756.07 3.71%
36. Jan 31, 2021 $288.33 -9.65% 3,714.24 -1.11%
37. Feb 28, 2021 $298.31 3.46% 3,811.15 2.61%
38. Mar 31, 2021 $287.44 -3.64% 3,972.89 4.24%
39. Apr 30, 2021 $263.54 -8.31% 4,181.17 5.24%
40. May 31, 2021 $258.01 -2.10% 4,204.11 0.55%
41. Jun 30, 2021 $276.37 7.12% 4,297.50 2.22%
42. Jul 31, 2021 $259.48 -6.11% 4,395.26 2.27%
43. Aug 31, 2021 $289.78 11.68% 4,522.68 2.90%
44. Sep 30, 2021 $265.22 -8.48% 4,307.54 -4.76%
45. Oct 31, 2021 $354.68 33.73% 4,605.38 6.91%
46. Nov 30, 2021 $327.76 -7.59% 4,567.00 -0.83%
47. Dec 31, 2021 $280.57 -14.40% 4,766.18 4.36%
48. Jan 31, 2022 $238.22 -15.09% 4,515.55 -5.26%
49. Feb 28, 2022 $319.42 34.09% 4,373.94 -3.14%
50. Mar 31, 2022 $322.37 0.92% 4,530.41 3.58%
51. Apr 30, 2022 $250.41 -22.32% 4,131.93 -8.80%
52. May 31, 2022 $272.79 8.94% 4,132.15 0.01%
53. Jun 30, 2022 $273.68 0.33% 3,785.38 -8.39%
54. Jul 31, 2022 $360.13 31.59% 4,130.29 9.11%
55. Aug 31, 2022 $275.97 -23.37% 3,955.00 -4.24%
56. Sep 30, 2022 $231.46 -16.13% 3,585.62 -9.34%
57. Oct 31, 2022 $230.03 -0.62% 3,871.98 7.99%
58. Nov 30, 2022 $298.86 29.92% 4,080.11 5.38%
59. Dec 31, 2022 $283.27 -5.22% 3,839.50 -5.90%
Average (R): 4.89% 0.67%
Standard deviation: 16.77% 5.40%

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1 Data in US$ per share of common stock, adjusted for splits and stock dividends.

2 Rate of return on common stock of SEDG during period t

3 Rate of return on S&P 500 (the market portfolio proxy) during period t


Variance and Covariance

SolarEdge Technologies Inc., calculation of variance and covariance of returns

Microsoft Excel
t Date RSEDG,t RS&P 500,t (RSEDG,tRSEDG)2 (RS&P 500,tRS&P 500)2 (RSEDG,tRSEDG)×(RS&P 500,tRS&P 500)
1. Feb 28, 2018 39.42% -3.89% 1,191.89 20.81 -157.48
2. Mar 31, 2018 5.09% -2.69% 0.04 11.26 -0.68
3. Apr 30, 2018 0.10% 0.27% 23.00 0.16 1.89
. . . . . . .
. . . . . . .
. . . . . . .
58. Nov 30, 2022 29.92% 5.38% 626.55 22.17 117.86
59. Dec 31, 2022 -5.22% -5.90% 102.17 43.08 66.34
Total (Σ): 16,309.07 1,691.48 2,228.79
t Date RSEDG,t RS&P 500,t (RSEDG,tRSEDG)2 (RS&P 500,tRS&P 500)2 (RSEDG,tRSEDG)×(RS&P 500,tRS&P 500)
1. Feb 28, 2018 39.42% -3.89% 1,191.89 20.81 -157.48
2. Mar 31, 2018 5.09% -2.69% 0.04 11.26 -0.68
3. Apr 30, 2018 0.10% 0.27% 23.00 0.16 1.89
4. May 31, 2018 6.08% 2.16% 1.41 2.23 1.77
5. Jun 30, 2018 -14.32% 0.48% 369.23 0.03 3.51
6. Jul 31, 2018 11.29% 3.60% 40.88 8.62 18.77
7. Aug 31, 2018 -9.95% 3.03% 220.35 5.57 -35.03
8. Sep 30, 2018 -21.48% 0.43% 695.48 0.06 6.26
9. Oct 31, 2018 2.87% -6.94% 4.09 57.87 15.39
10. Nov 30, 2018 0.52% 1.79% 19.14 1.25 -4.90
11. Dec 31, 2018 -9.84% -9.18% 216.96 96.91 145.00
12. Jan 31, 2019 24.76% 7.87% 394.68 51.87 143.08
13. Feb 28, 2019 -3.49% 2.97% 70.31 5.32 -19.34
14. Mar 31, 2019 -10.84% 1.79% 247.40 1.27 -17.71
15. Apr 30, 2019 17.57% 3.93% 160.73 10.66 41.39
16. May 31, 2019 20.95% -6.58% 257.82 52.48 -116.32
17. Jun 30, 2019 16.57% 6.89% 136.47 38.77 72.74
18. Jul 31, 2019 4.43% 1.31% 0.21 0.42 -0.29
19. Aug 31, 2019 25.59% -1.81% 428.29 6.13 -51.24
20. Sep 30, 2019 2.20% 1.72% 7.26 1.11 -2.83
21. Oct 31, 2019 1.48% 2.04% 11.63 1.89 -4.69
22. Nov 30, 2019 -3.94% 3.40% 78.04 7.50 -24.19
23. Dec 31, 2019 16.52% 2.86% 135.17 4.81 25.49
24. Jan 31, 2020 2.91% -0.16% 3.91 0.69 1.64
25. Feb 29, 2020 27.45% -8.41% 508.78 82.40 -204.76
26. Mar 31, 2020 -34.35% -12.51% 1,539.79 173.67 517.13
27. Apr 30, 2020 36.28% 12.68% 985.56 144.43 377.28
28. May 31, 2020 27.16% 4.53% 495.98 14.91 86.00
29. Jun 30, 2020 -2.20% 1.84% 50.27 1.37 -8.31
30. Jul 31, 2020 26.17% 5.51% 452.83 23.46 103.07
31. Aug 31, 2020 26.30% 7.01% 458.30 40.19 135.72
32. Sep 30, 2020 7.78% -3.92% 8.33 21.06 -13.25
33. Oct 31, 2020 8.11% -2.77% 10.39 11.79 -11.06
34. Nov 30, 2020 7.87% 10.75% 8.90 101.77 30.09
35. Dec 31, 2020 14.80% 3.71% 98.18 9.28 30.18
36. Jan 31, 2021 -9.65% -1.11% 211.40 3.17 25.89
37. Feb 28, 2021 3.46% 2.61% 2.04 3.77 -2.78
38. Mar 31, 2021 -3.64% 4.24% 72.85 12.80 -30.53
39. Apr 30, 2021 -8.31% 5.24% 174.40 20.94 -60.43
40. May 31, 2021 -2.10% 0.55% 48.85 0.01 0.82
41. Jun 30, 2021 7.12% 2.22% 4.95 2.42 3.46
42. Jul 31, 2021 -6.11% 2.27% 121.06 2.59 -17.69
43. Aug 31, 2021 11.68% 2.90% 46.05 4.98 15.15
44. Sep 30, 2021 -8.48% -4.76% 178.67 29.42 72.49
45. Oct 31, 2021 33.73% 6.91% 831.70 39.03 180.18
46. Nov 30, 2021 -7.59% -0.83% 155.78 2.25 18.72
47. Dec 31, 2021 -14.40% 4.36% 372.06 13.65 -71.27
48. Jan 31, 2022 -15.09% -5.26% 399.42 35.11 118.42
49. Feb 28, 2022 34.09% -3.14% 852.34 14.46 -111.02
50. Mar 31, 2022 0.92% 3.58% 15.74 8.47 -11.55
51. Apr 30, 2022 -22.32% -8.80% 740.57 89.54 257.50
52. May 31, 2022 8.94% 0.01% 16.37 0.44 -2.68
53. Jun 30, 2022 0.33% -8.39% 20.84 82.06 41.35
54. Jul 31, 2022 31.59% 9.11% 712.72 71.32 225.45
55. Aug 31, 2022 -23.37% -4.24% 798.66 24.11 138.78
56. Sep 30, 2022 -16.13% -9.34% 441.83 100.12 210.33
57. Oct 31, 2022 -0.62% 7.99% 30.35 53.58 -40.32
58. Nov 30, 2022 29.92% 5.38% 626.55 22.17 117.86
59. Dec 31, 2022 -5.22% -5.90% 102.17 43.08 66.34
Total (Σ): 16,309.07 1,691.48 2,228.79

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VarianceSEDG = Σ(RSEDG,tRSEDG)2 ÷ (59 – 1)
= 16,309.07 ÷ (59 – 1)
= 281.19

VarianceS&P 500 = Σ(RS&P 500,tRS&P 500)2 ÷ (59 – 1)
= 1,691.48 ÷ (59 – 1)
= 29.16

CovarianceSEDG, S&P 500 = Σ(RSEDG,tRSEDG)×(RS&P 500,tRS&P 500) ÷ (59 – 1)
= 2,228.79 ÷ (59 – 1)
= 38.43


Systematic Risk (β) Estimation

Microsoft Excel
VarianceSEDG 281.19
VarianceS&P 500 29.16
CovarianceSEDG, S&P 500 38.43
Correlation coefficientSEDG, S&P 5001 0.42
βSEDG2 1.32
αSEDG3 4.01%

Calculations

1 Correlation coefficientSEDG, S&P 500
= CovarianceSEDG, S&P 500 ÷ (Standard deviationSEDG × Standard deviationS&P 500)
= 38.43 ÷ (16.77% × 5.40%)
= 0.42

2 βSEDG
= CovarianceSEDG, S&P 500 ÷ VarianceS&P 500
= 38.43 ÷ 29.16
= 1.32

3 αSEDG
= AverageSEDG – βSEDG × AverageS&P 500
= 4.89%1.32 × 0.67%
= 4.01%


Expected Rate of Return

Microsoft Excel
Assumptions
Rate of return on LT Treasury Composite1 RF 4.68%
Expected rate of return on market portfolio2 E(RM) 13.78%
Systematic risk (β) of SolarEdge Technologies Inc. common stock βSEDG 1.32
 
Expected rate of return on SolarEdge Technologies Inc. common stock3 E(RSEDG) 16.68%

1 Unweighted average of bid yields on all outstanding fixed-coupon U.S. Treasury bonds neither due or callable in less than 10 years (risk-free rate of return proxy).

2 See details »

3 E(RSEDG) = RF + βSEDG [E(RM) – RF]
= 4.68% + 1.32 [13.78%4.68%]
= 16.68%