Is First Solar, Inc. overvalued or undervalued?

As of 7 July 2025, the valuation grade for First Solar, Inc. has moved from fair to attractive, indicating a positive shift in its perceived value. The company appears to be undervalued, supported by a P/E ratio of 14, a PEG ratio of 0.75, and an EV to EBITDA ratio of 9.07, all of which suggest that the stock is trading at a discount relative to its earnings and growth potential.
In comparison to its peers, First Solar's P/E ratio of 14 is notably lower than Monolithic Power Systems, Inc. at 22.32 and ON Semiconductor Corp. at 25.65, indicating that First Solar may be undervalued relative to these companies. Additionally, its EV to EBITDA ratio of 9.07 is more favorable than Monolithic Power Systems' 57.10, further reinforcing its attractive valuation. While First Solar has had a mixed performance against the S&P 500, it has outperformed in the year-to-date return with 18.95% compared to the S&P 500's 12.22%, suggesting a strong recovery potential.