Common Stock Valuation Ratios (Price Multiples)
Valuation ratios measure the quantity of an asset or flaw (e.g., earnings) associated with ownership of a specified claim (e.g., a share of ownership of the enterprise).
Current Valuation Ratios
SolarEdge Technologies Inc., current price multiples
| SolarEdge Technologies Inc. | Advanced Micro Devices Inc. | Analog Devices Inc. | Applied Materials Inc. | Broadcom Inc. | Intel Corp. | KLA Corp. | Lam Research Corp. | Micron Technology Inc. | NVIDIA Corp. | Qualcomm Inc. | Texas Instruments Inc. | Semiconductors & Semiconductor Equipment | Information Technology | ||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||||||||||||
| Current share price (P) | $295.71 | ||||||||||||||||
| No. shares of common stock outstanding | 47,255,226 | ||||||||||||||||
| Growth rate (g) | 14.20% | ||||||||||||||||
| Earnings per share (EPS) | $1.98 | ||||||||||||||||
| Next year expected EPS | $2.27 | ||||||||||||||||
| Operating profit per share | $3.52 | ||||||||||||||||
| Sales per share | $65.82 | ||||||||||||||||
| Book value per share (BVPS) | $46.06 | ||||||||||||||||
| Valuation Ratios (Price Multiples) | |||||||||||||||||
| Price to earnings (P/E) | 149.01 | 142.44 | 74.39 | 22.14 | 219.73 | — | 44.46 | 33.77 | 177.09 | 54.94 | 17.22 | 41.58 | 85.79 | 57.33 | |||
| Price to next year expected earnings | 130.48 | 127.77 | 72.80 | 16.55 | 231.57 | — | 29.42 | 23.90 | 160.67 | 39.36 | 12.40 | 35.69 | 74.07 | 44.82 | |||
| Price-earnings-growth (PEG) | 10.50 | 12.41 | 34.02 | 0.66 | — | — | 0.87 | 0.82 | 17.32 | 1.39 | 0.44 | 2.52 | 5.42 | 2.05 | |||
| Price to operating profit (P/OP) | 84.12 | 123.02 | 59.84 | 20.20 | 96.21 | — | 36.70 | 30.32 | 105.66 | 49.16 | 17.34 | 36.52 | 79.86 | 48.65 | |||
| Price to sales (P/S) | 4.49 | 9.07 | 12.90 | 5.85 | 25.12 | 1.96 | 12.52 | 8.67 | 5.49 | 30.68 | 4.48 | 12.76 | 21.84 | 12.86 | |||
| Price to book value (P/BV) | 6.42 | 4.06 | 3.46 | 8.36 | 19.14 | 1.05 | 36.46 | 15.14 | 3.05 | 50.48 | 6.65 | 11.81 | 19.40 | 22.43 | |||
Based on: 10-K (reporting date: 2022-12-31).
If the company price multiple is lower then the price multiple of benchmark then company stock is relatively undervalued.
Otherwise, if the company price multiple is higher then the price multiple of benchmark then company stock is relatively overvalued.
Historical Valuation Ratios (Summary)
SolarEdge Technologies Inc., historical price multiples
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
- Price to Earnings (P/E) Ratio
- The Price to Earnings ratio shows a significant upward trend over the analyzed period. Starting at 15.5 in 2018, it rose sharply to 42.31 in 2019, then increased further to 118.36 in 2020. Although it decreased somewhat to 76.83 in 2021, it surged again to reach a peak of 177.05 in 2022. This fluctuating but overall increasing pattern suggests a growing market expectation for earnings growth or possibly inflated valuations relative to current earnings.
- Price to Operating Profit (P/OP) Ratio
- The Price to Operating Profit ratio follows a similar trajectory to the P/E ratio. It increased from 14.32 in 2018 to 32.65 in 2019, jumped significantly to 116.5 in 2020, then nearly halved to 62.75 in 2021 before climbing again to 99.95 in 2022. The pattern indicates volatility in market valuation relative to operating profit but an overall trend toward higher valuation multiples over time.
- Price to Sales (P/S) Ratio
- The Price to Sales ratio increased sharply from 2.13 in 2018 to 4.35 in 2019, then peaked at 11.38 in 2020, indicating a rapid increase in the market value relative to sales. However, the ratio declined to 6.62 in 2021 and further to 5.34 in 2022. This suggests an adjustment in valuation, potentially due to slower sales growth or more cautious investor sentiment following the 2020 peak.
- Price to Book Value (P/BV) Ratio
- The Price to Book Value ratio shows a pattern of rising until 2020 and decreasing afterward. It increased from 3.55 in 2018 to 7.64 in 2019, doubled again to 15.3 in 2020, but then declined to 9.92 in 2021 and further to 7.63 in 2022. This trend implies that the market's premium over the company's book value reached a high in 2020 but contracted in the subsequent two years, possibly reflecting revised market assessments of asset values or growth prospects.
Price to Earnings (P/E)
SolarEdge Technologies Inc., historical P/E calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 56,146,608 | 52,818,655 | 51,581,559 | 49,235,498 | 47,255,226 | |
| Selected Financial Data (US$) | ||||||
| Net income attributable to SolarEdge Technologies, Inc. (in thousands) | 93,779) | 169,170) | 140,322) | 146,549) | 128,833) | |
| Earnings per share (EPS)2 | 1.67 | 3.20 | 2.72 | 2.98 | 2.73 | |
| Share price1, 3 | 295.71 | 246.07 | 321.99 | 125.95 | 42.26 | |
| Valuation Ratio | ||||||
| P/E ratio4 | 177.05 | 76.83 | 118.36 | 42.31 | 15.50 | |
| Benchmarks | ||||||
| P/E Ratio, Competitors5 | ||||||
| Advanced Micro Devices Inc. | 96.16 | 45.54 | 41.66 | — | — | |
| Analog Devices Inc. | 31.21 | 68.31 | 41.43 | 31.04 | — | |
| Applied Materials Inc. | 13.55 | 22.05 | 22.31 | 20.25 | — | |
| Broadcom Inc. | 20.70 | 40.73 | 66.38 | 47.09 | — | |
| Intel Corp. | 14.54 | 9.85 | 11.02 | — | — | |
| KLA Corp. | 16.89 | 25.97 | 25.92 | 18.44 | — | |
| Lam Research Corp. | 13.77 | 21.03 | 24.23 | 13.64 | — | |
| Micron Technology Inc. | 6.62 | 13.38 | 21.80 | 7.98 | — | |
| NVIDIA Corp. | 68.08 | 78.54 | 67.59 | — | — | |
| Qualcomm Inc. | 9.75 | 17.15 | 28.06 | 22.03 | — | |
| Texas Instruments Inc. | 18.88 | 20.38 | 27.95 | — | — | |
| P/E Ratio, Sector | ||||||
| Semiconductors & Semiconductor Equipment | 22.88 | 24.30 | 25.24 | — | — | |
| P/E Ratio, Industry | ||||||
| Information Technology | 26.81 | 29.49 | 31.10 | — | — | |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 Data adjusted for splits and stock dividends.
2 2022 Calculation
EPS = Net income attributable to SolarEdge Technologies, Inc. ÷ No. shares of common stock outstanding
= 93,779,000 ÷ 56,146,608 = 1.67
3 Closing price as at the filing date of SolarEdge Technologies Inc. Annual Report.
4 2022 Calculation
P/E ratio = Share price ÷ EPS
= 295.71 ÷ 1.67 = 177.05
5 Click competitor name to see calculations.
- Share Price
- The share price exhibited a significant upward trend from 2018 through 2020, rising sharply from $42.26 to $321.99. Although there was a decline in 2021 to $246.07, the share price recovered somewhat in 2022, reaching $295.71. Overall, the share price experienced substantial growth over the five-year period despite some volatility in the later years.
- Earnings Per Share (EPS)
- EPS showed moderate fluctuations during the period. It increased gradually from $2.73 in 2018 to a peak of $3.20 in 2021 but declined markedly in 2022 to $1.67. The trend indicates relatively stable earnings growth until 2021, followed by a significant drop in the most recent year.
- Price-to-Earnings (P/E) Ratio
- The P/E ratio demonstrated considerable variability, starting at 15.5 in 2018 and escalating sharply to a peak of 177.05 in 2022. Notably, the ratio surged substantially between 2019 and 2020, reflecting increased investor valuation relative to earnings. Although the P/E ratio decreased in 2021 compared to 2020, it then rose dramatically in 2022, likely influenced by the decrease in EPS amid relatively high share prices.
Price to Operating Profit (P/OP)
SolarEdge Technologies Inc., historical P/OP calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 56,146,608 | 52,818,655 | 51,581,559 | 49,235,498 | 47,255,226 | |
| Selected Financial Data (US$) | ||||||
| Operating income (in thousands) | 166,120) | 207,139) | 142,561) | 189,946) | 139,420) | |
| Operating profit per share2 | 2.96 | 3.92 | 2.76 | 3.86 | 2.95 | |
| Share price1, 3 | 295.71 | 246.07 | 321.99 | 125.95 | 42.26 | |
| Valuation Ratio | ||||||
| P/OP ratio4 | 99.95 | 62.75 | 116.50 | 32.65 | 14.32 | |
| Benchmarks | ||||||
| P/OP Ratio, Competitors5 | ||||||
| Advanced Micro Devices Inc. | 100.42 | 39.48 | 75.77 | — | — | |
| Analog Devices Inc. | 26.16 | 56.12 | 33.76 | 24.74 | — | |
| Applied Materials Inc. | 11.35 | 18.85 | 18.50 | 16.36 | — | |
| Broadcom Inc. | 16.33 | 30.78 | 44.04 | 36.85 | — | |
| Intel Corp. | 49.91 | 10.06 | 9.72 | — | — | |
| KLA Corp. | 15.36 | 21.69 | 20.99 | 15.60 | — | |
| Lam Research Corp. | 11.79 | 18.34 | 20.40 | 12.13 | — | |
| Micron Technology Inc. | 5.93 | 12.48 | 19.51 | 6.83 | — | |
| NVIDIA Corp. | 66.12 | 75.08 | 66.40 | — | — | |
| Qualcomm Inc. | 7.95 | 15.84 | 23.32 | 12.60 | — | |
| Texas Instruments Inc. | 16.29 | 17.67 | 26.53 | — | — | |
| P/OP Ratio, Sector | ||||||
| Semiconductors & Semiconductor Equipment | 21.30 | 22.09 | 22.38 | — | — | |
| P/OP Ratio, Industry | ||||||
| Information Technology | 22.75 | 26.04 | 26.91 | — | — | |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 Data adjusted for splits and stock dividends.
2 2022 Calculation
Operating profit per share = Operating income ÷ No. shares of common stock outstanding
= 166,120,000 ÷ 56,146,608 = 2.96
3 Closing price as at the filing date of SolarEdge Technologies Inc. Annual Report.
4 2022 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 295.71 ÷ 2.96 = 99.95
5 Click competitor name to see calculations.
- Share Price Trend
- The share price exhibited substantial growth between 2018 and 2020, increasing from $42.26 to $321.99. This represents a nearly eightfold increase within two years. However, the price declined in 2021 to $246.07 before recovering somewhat in 2022 to $295.71, indicating some volatility but maintaining a significantly higher level compared to 2018 and 2019.
- Operating Profit Per Share Trend
- Operating profit per share showed moderate fluctuations over the period. It rose from $2.95 in 2018 to $3.86 in 2019, then decreased to $2.76 in 2020. It recovered to $3.92 in 2021 but fell again to $2.96 in 2022. This pattern reflects some instability in operating profitability per share with no clear upward or downward trend over the entire period.
- Price to Operating Profit Ratio (P/OP) Trend
- The P/OP ratio increased sharply from 14.32 in 2018 to a peak of 116.5 in 2020, indicating that the share price growth outpaced operating profit per share significantly during this time. After falling to 62.75 in 2021, the ratio rose again to 99.95 in 2022. This suggests investors' expectations or market valuation of the company relative to its operating profit have been highly variable, with particularly high valuations in 2020 and 2022.
- Overall Insights
- While the share price experienced considerable growth and some volatility, operating profit per share showed inconsistent performance without a clear long-term trend. The high and fluctuating P/OP ratio indicates periods where market optimism about future profitability may have driven valuations above what current operating profits justified. The divergence between share price and operating profit per share results in elevated valuation multiples, implying heightened market expectations or speculative factors influencing the stock price during these years.
Price to Sales (P/S)
SolarEdge Technologies Inc., historical P/S calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 56,146,608 | 52,818,655 | 51,581,559 | 49,235,498 | 47,255,226 | |
| Selected Financial Data (US$) | ||||||
| Revenues (in thousands) | 3,110,279) | 1,963,865) | 1,459,271) | 1,425,660) | 937,237) | |
| Sales per share2 | 55.40 | 37.18 | 28.29 | 28.96 | 19.83 | |
| Share price1, 3 | 295.71 | 246.07 | 321.99 | 125.95 | 42.26 | |
| Valuation Ratio | ||||||
| P/S ratio4 | 5.34 | 6.62 | 11.38 | 4.35 | 2.13 | |
| Benchmarks | ||||||
| P/S Ratio, Competitors5 | ||||||
| Advanced Micro Devices Inc. | 5.38 | 8.76 | 10.63 | — | — | |
| Analog Devices Inc. | 7.14 | 12.98 | 9.03 | 7.06 | — | |
| Applied Materials Inc. | 3.43 | 5.63 | 4.69 | 3.75 | — | |
| Broadcom Inc. | 7.00 | 9.55 | 7.40 | 5.62 | — | |
| Intel Corp. | 1.85 | 2.48 | 2.96 | — | — | |
| KLA Corp. | 6.09 | 7.80 | 5.43 | 4.74 | — | |
| Lam Research Corp. | 3.68 | 5.62 | 5.43 | 3.10 | — | |
| Micron Technology Inc. | 1.87 | 2.83 | 2.73 | 2.15 | — | |
| NVIDIA Corp. | 24.67 | 20.41 | 17.31 | — | — | |
| Qualcomm Inc. | 2.85 | 4.62 | 6.20 | 3.98 | — | |
| Texas Instruments Inc. | 8.25 | 8.63 | 10.81 | — | — | |
| P/S Ratio, Sector | ||||||
| Semiconductors & Semiconductor Equipment | 5.82 | 6.25 | 5.80 | — | — | |
| P/S Ratio, Industry | ||||||
| Information Technology | 6.01 | 6.96 | 6.11 | — | — | |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 Data adjusted for splits and stock dividends.
2 2022 Calculation
Sales per share = Revenues ÷ No. shares of common stock outstanding
= 3,110,279,000 ÷ 56,146,608 = 55.40
3 Closing price as at the filing date of SolarEdge Technologies Inc. Annual Report.
4 2022 Calculation
P/S ratio = Share price ÷ Sales per share
= 295.71 ÷ 55.40 = 5.34
5 Click competitor name to see calculations.
- Share Price Trend
- The share price exhibited significant growth from 2018 to 2020, rising from $42.26 to $321.99, representing a substantial increase. However, in 2021, the share price declined to $246.07 before recovering somewhat to $295.71 in 2022. This pattern indicates volatility after rapid appreciation in the earlier years.
- Sales per Share Trend
- Sales per share demonstrated a consistent upward trend, increasing from $19.83 in 2018 to $55.40 in 2022. The growth was steady with a minor dip in 2020 compared to 2019, but overall sales per share more than doubled over the five-year period, indicating expanding revenue generation on a per-share basis.
- Price-to-Sales (P/S) Ratio Trend
- The price-to-sales ratio experienced notable fluctuations. It rose sharply from 2.13 in 2018 to a peak of 11.38 in 2020, reflecting increased market valuation relative to sales during this period. Subsequently, it decreased to 6.62 in 2021 and further to 5.34 in 2022, suggesting that the market valuation moderated somewhat in relation to sales despite the continuing growth in sales per share.
- Overall Insights
- The data reveals a period of rapid market optimism from 2018 through 2020, with a strong surge in share price and P/S ratio. The following years saw a correction in share price and a normalization of the P/S ratio, possibly reflecting adjusted investor expectations. Meanwhile, sales per share consistently improved, indicating ongoing operational growth and strengthening revenue performance on a per-share basis despite market fluctuations.
Price to Book Value (P/BV)
SolarEdge Technologies Inc., historical P/BV calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 56,146,608 | 52,818,655 | 51,581,559 | 49,235,498 | 47,255,226 | |
| Selected Financial Data (US$) | ||||||
| Total SolarEdge Technologies, Inc. stockholders’ equity (in thousands) | 2,176,366) | 1,310,039) | 1,085,757) | 811,670) | 562,408) | |
| Book value per share (BVPS)2 | 38.76 | 24.80 | 21.05 | 16.49 | 11.90 | |
| Share price1, 3 | 295.71 | 246.07 | 321.99 | 125.95 | 42.26 | |
| Valuation Ratio | ||||||
| P/BV ratio4 | 7.63 | 9.92 | 15.30 | 7.64 | 3.55 | |
| Benchmarks | ||||||
| P/BV Ratio, Competitors5 | ||||||
| Advanced Micro Devices Inc. | 2.32 | 19.21 | 17.77 | — | — | |
| Analog Devices Inc. | 2.35 | 2.50 | 4.22 | 3.61 | — | |
| Applied Materials Inc. | 7.25 | 10.60 | 7.63 | 6.67 | — | |
| Broadcom Inc. | 10.23 | 10.50 | 7.40 | 5.09 | — | |
| Intel Corp. | 1.15 | 2.05 | 2.84 | — | — | |
| KLA Corp. | 40.05 | 15.98 | 11.83 | 8.15 | — | |
| Lam Research Corp. | 10.10 | 13.64 | 10.55 | 6.40 | — | |
| Micron Technology Inc. | 1.15 | 1.79 | 1.50 | 1.40 | — | |
| NVIDIA Corp. | 24.95 | 20.14 | 15.49 | — | — | |
| Qualcomm Inc. | 7.00 | 15.59 | 24.00 | 19.69 | — | |
| Texas Instruments Inc. | 11.33 | 11.87 | 17.02 | — | — | |
| P/BV Ratio, Sector | ||||||
| Semiconductors & Semiconductor Equipment | 5.18 | 6.24 | 6.15 | — | — | |
| P/BV Ratio, Industry | ||||||
| Information Technology | 10.49 | 12.51 | 11.10 | — | — | |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 Data adjusted for splits and stock dividends.
2 2022 Calculation
BVPS = Total SolarEdge Technologies, Inc. stockholders’ equity ÷ No. shares of common stock outstanding
= 2,176,366,000 ÷ 56,146,608 = 38.76
3 Closing price as at the filing date of SolarEdge Technologies Inc. Annual Report.
4 2022 Calculation
P/BV ratio = Share price ÷ BVPS
= 295.71 ÷ 38.76 = 7.63
5 Click competitor name to see calculations.
- Share Price Trend
- The share price demonstrated a strong upward trajectory from 2018 through 2020, escalating from $42.26 to a peak of $321.99. This significant increase reflects a period of heightened market valuation. However, in 2021, the share price declined to $246.07, indicating a partial correction or adjustment. By 2022, the price moved upward again to $295.71 but remained below the 2020 peak.
- Book Value per Share (BVPS) Trend
- The book value per share steadily increased over the entire five-year span. Starting at $11.90 in 2018, BVPS rose each year to reach $38.76 by the end of 2022. This consistent growth suggests continuous accretion to shareholder equity and an improving net asset base over time.
- Price-to-Book Value (P/BV) Ratio Trend
- The P/BV ratio showed notable volatility. Beginning at 3.55 in 2018, it increased sharply, peaking at 15.3 in 2020, indicating a high market premium relative to book value at that time. Thereafter, the ratio declined to 9.92 in 2021 and further to 7.63 in 2022. The decrease in P/BV ratio may reflect the share price correction combined with the steady rise in book value.
- Overall Insights
- The company's market valuation experienced rapid growth followed by some stabilization. While the share price surged dramatically through 2020, the subsequent partial decline suggests market recalibration. The steady increase in book value per share implies an underlying strengthening of the company's asset base. The fluctuating P/BV ratio highlights changing investor sentiment and valuation dynamics over the period, with the highest premium coinciding with the peak share price in 2020.