Is Bloom Energy Corp. overvalued or undervalued?

As of 31 July 2025, the valuation grade for Bloom Energy Corp. has moved from attractive to fair, indicating a shift in its perceived value. Based on the current metrics, the company appears to be overvalued. The P/E ratio stands at 148, significantly higher than the peer average of approximately 215.17, while the EV to EBITDA ratio is 36.81 compared to the peer average of 78.60. Additionally, the PEG ratio is 1.32, suggesting that the stock may not be justified at its current price given its growth expectations.
In comparison to its peers, Bloom Energy Corp. shows a lower valuation in terms of EV to Sales at 3.47, which is more favorable than the industry average, but its overall high P/E ratio raises concerns about overvaluation. Furthermore, the company has significantly outperformed the S&P 500 across multiple time frames, with a remarkable 698.52% return over the past year compared to the S&P 500's 17.14%. This strong performance, while impressive, does not negate the concerns regarding its current valuation metrics.