Is First Solar, Inc. overvalued or undervalued?
As of August 15, 2024, First Solar, Inc. is considered undervalued with a fair to attractive valuation grade, featuring a P/E ratio of 14, an EV to EBITDA of 9.07, a PEG ratio of 0.75, and a strong ROCE of 18.81%, indicating potential for recovery and growth despite recent underperformance against the S&P 500.
As of 15 August 2024, First Solar, Inc. has moved from a fair to attractive valuation grade. The company is currently considered undervalued based on its financial metrics. Key ratios include a P/E ratio of 14, an EV to EBITDA of 9.07, and a PEG ratio of 0.75, indicating strong potential for growth relative to its price.In comparison to peers, First Solar's P/E ratio of 14 is higher than the peer average of 12.176, while its EV to EBITDA of 9.07 is also more favorable compared to the peer average of 7.8252. Additionally, First Solar's ROCE stands at 18.81%, showcasing efficient capital utilization. Despite recent underperformance against the S&P 500, with a 1-year return of -44.11% compared to the index's 10.26%, the company's fundamentals suggest it is well-positioned for recovery and growth moving forward.
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