Is Enphase Energy, Inc. overvalued or undervalued?

As of 18 June 2025, the valuation grade for Enphase Energy, Inc. has moved from very expensive to fair. The company is currently fairly valued based on its financial ratios. The P/E ratio stands at 30, while the EV to EBITDA ratio is 21.72, and the ROE is at a strong 22.30%.
In comparison with peers, First Solar, Inc. is considered attractive with a P/E ratio of 12.18 and an EV to EBITDA of 7.83, indicating that Enphase may be overvalued relative to its industry. Additionally, Enphase's stock has significantly underperformed against the S&P 500, with a year-to-date return of -49.68% compared to the S&P 500's 2.44%, reinforcing the notion that the stock may not be a compelling investment at its current valuation.