Price to Earnings (P/E)
since 2006
Calculation
First Solar Inc., P/E, long-term trends, calculation
| P/E | = | Share price1, 2, 3 | ÷ | Earnings per share1 (EPS) | EPS1 | = | Net income (loss)1 (in thousands) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Feb 27, 2024 | 18.65 | = | 144.99 | ÷ | 7.78 | 7.78 | = | 830,777 | ÷ | 106,848,929 | |
| Feb 28, 2023 | — | = | 169.14 | ÷ | -0.41 | -0.41 | = | -44,166 | ÷ | 106,609,094 | |
| Mar 1, 2022 | 17.16 | = | 75.62 | ÷ | 4.41 | 4.41 | = | 468,693 | ÷ | 106,333,764 | |
| Feb 26, 2021 | 21.56 | = | 81.02 | ÷ | 3.76 | 3.76 | = | 398,355 | ÷ | 105,986,398 | |
| Feb 21, 2020 | — | = | 50.59 | ÷ | -1.09 | -1.09 | = | -114,933 | ÷ | 105,457,669 | |
| Feb 22, 2019 | 39.05 | = | 53.73 | ÷ | 1.38 | 1.38 | = | 144,326 | ÷ | 104,894,572 | |
| Feb 23, 2018 | — | = | 61.79 | ÷ | -1.59 | -1.59 | = | -165,615 | ÷ | 104,474,656 | |
| Feb 22, 2017 | — | = | 33.57 | ÷ | -3.44 | -3.44 | = | -357,964 | ÷ | 104,044,691 | |
| Feb 24, 2016 | 12.93 | = | 69.45 | ÷ | 5.37 | 5.37 | = | 546,421 | ÷ | 101,767,670 | |
| Feb 25, 2015 | 14.79 | = | 58.54 | ÷ | 3.96 | 3.96 | = | 396,918 | ÷ | 100,291,843 | |
| Feb 26, 2014 | 14.87 | = | 52.74 | ÷ | 3.55 | 3.55 | = | 353,038 | ÷ | 99,512,794 | |
| Feb 27, 2013 | — | = | 27.04 | ÷ | -1.11 | -1.11 | = | -96,338 | ÷ | 87,156,517 | |
| Feb 29, 2012 | — | = | 32.30 | ÷ | -0.46 | -0.46 | = | -39,493 | ÷ | 86,485,999 | |
| Feb 28, 2011 | 19.06 | = | 147.39 | ÷ | 7.73 | 7.73 | = | 664,201 | ÷ | 85,895,081 | |
| Feb 22, 2010 | 15.06 | = | 113.09 | ÷ | 7.51 | 7.51 | = | 640,138 | ÷ | 85,229,228 | |
| Feb 25, 2009 | 25.23 | = | 107.65 | ÷ | 4.27 | 4.27 | = | 348,330 | ÷ | 81,643,905 | |
| Feb 21, 2008 | 105.09 | = | 211.59 | ÷ | 2.01 | 2.01 | = | 158,354 | ÷ | 78,649,834 | |
| Mar 16, 2007 | 938.14 | = | 51.52 | ÷ | 0.05 | 0.05 | = | 3,974 | ÷ | 72,363,218 |
Based on: 10-K (reporting date: 2023-12-31), 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), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-26), 10-K (reporting date: 2008-12-27), 10-K (reporting date: 2007-12-29), 10-K (reporting date: 2006-12-30).
1 US$
2 Data adjusted for splits and stock dividends.
3 Closing price as at the filing date of First Solar Inc. Annual Report.
The financial data exhibits significant volatility in valuation and profitability over the analyzed period, characterized by alternating cycles of high growth, operational losses, and recovery. A primary observation is the extreme fluctuation of the price-to-earnings ratio, which reflects shifting market sentiment and inconsistent earnings per share.
- Initial Valuation and Normalization (2007–2011)
- The period began with an exceptionally high P/E ratio of 938.14 in 2007, indicating a high speculative premium relative to nominal earnings. As earnings per share grew substantially from 0.05 in 2007 to 7.73 by 2011, the P/E ratio normalized rapidly, descending to 15.06 in 2010 before slightly increasing to 19.06 in 2011. This suggests a transition from speculative valuation to one supported by fundamental earnings growth.
- Profitability Instability and Valuation Gaps (2012–2020)
- A period of instability is evident between 2012 and 2020, marked by several intervals of negative earnings per share. Specifically, losses occurred in 2012, 2013, 2017, 2018, and 2020, rendering the P/E ratio non-calculable during those years. Between these losses, temporary recoveries occurred; for instance, from 2014 to 2016, the P/E ratio remained stable between 12.93 and 14.87. A notable spike to a P/E of 39.05 occurred in 2019, coinciding with a return to profitability as earnings per share rose to 1.38.
- Recent Valuation Trends (2021–2024)
- In the most recent period, the valuation has shown signs of stabilization despite continued earnings volatility. Following another loss in 2020, the P/E ratio stood at 21.56 in 2021 and 17.16 in 2022. After a subsequent dip into negative earnings in 2023, the most recent figure for 2024 shows a P/E ratio of 18.65, supported by a significant increase in earnings per share to 7.78.
Overall, the data reveals a recurring pattern where the share price does not always move in tandem with earnings. The presence of multiple years with negative earnings per share underscores a cyclical or volatile operational environment, while the P/E ratios during profitable years have generally converged within the 12x to 22x range, with the exception of the initial speculative peak and the 2019 recovery spike.
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Comparison to Competitors
First Solar Inc., P/E, long-term trends, comparison to competitors
| First Solar Inc. | Advanced Micro Devices Inc. | Analog Devices Inc. | Applied Materials Inc. | Broadcom Inc. | Intel Corp. | KLA Corp. | Lam Research Corp. | Marvell Technology Inc. | Micron Technology Inc. | NVIDIA Corp. | Qualcomm Inc. | Texas Instruments Inc. | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Feb 27, 2024 | 18.65 | 317.27 | 27.14 | 19.63 | 36.78 | 109.27 | 20.04 | 19.26 | — | — | 131.70 | 17.07 | 22.24 |
| Feb 28, 2023 | — | 96.16 | 31.21 | 13.55 | 20.70 | 14.54 | 16.89 | 13.77 | — | 6.62 | 68.08 | 9.75 | 18.88 |
| Mar 1, 2022 | 17.16 | 45.54 | 68.31 | 22.05 | 40.73 | 10.59 | 25.97 | 21.03 | — | 13.38 | 78.54 | 17.15 | 20.38 |
| Feb 26, 2021 | 21.56 | 41.66 | 41.43 | 22.31 | 66.38 | 11.02 | 25.92 | 24.23 | 7.94 | 21.80 | 67.59 | 28.06 | 27.95 |
| Feb 21, 2020 | — | 169.62 | 31.04 | 20.25 | 47.09 | 13.91 | 18.44 | 13.64 | — | 7.98 | 22.77 | 22.03 | 24.47 |
| Feb 22, 2019 | 39.05 | 68.76 | 22.17 | 9.75 | 8.14 | 10.41 | 23.02 | 11.70 | 20.02 | 3.40 | 48.05 | — | 18.05 |
| Feb 23, 2018 | — | 282.39 | 44.94 | 16.16 | 63.27 | 22.15 | 15.04 | 15.33 | 372.92 | 9.20 | 36.34 | 31.96 | 27.77 |
| Feb 22, 2017 | — | — | 26.07 | 20.68 | — | 16.72 | 17.18 | 15.81 | — | — | 28.95 | 17.37 | 21.45 |
| Feb 24, 2016 | 12.93 | — | 27.06 | 15.88 | 28.48 | 11.85 | 22.54 | 17.37 | 17.70 | 6.25 | 19.88 | 17.18 | 17.66 |
| Feb 25, 2015 | 14.79 | — | 27.51 | 27.87 | 98.35 | 13.90 | 20.52 | 18.20 | 24.44 | 11.39 | 22.17 | 16.11 | 21.89 |
| Feb 26, 2014 | 14.87 | — | 23.06 | 78.13 | 23.31 | 12.80 | 17.82 | 66.48 | 17.31 | 14.78 | 14.02 | 17.19 | 22.29 |
| Feb 27, 2013 | — | — | 18.56 | 118.67 | 13.97 | 9.48 | 11.45 | 37.82 | 14.87 | — | 15.69 | 16.21 | 21.47 |
| Feb 29, 2012 | — | 10.61 | 11.45 | 7.52 | 12.75 | 10.29 | 7.61 | 6.16 | 11.31 | 32.47 | 41.12 | 20.59 | 17.06 |
| Feb 28, 2011 | 19.06 | 13.36 | 15.08 | 18.91 | 15.37 | 10.60 | 25.53 | 13.40 | 36.98 | 4.16 | — | 22.76 | 12.93 |
| Feb 22, 2010 | 15.06 | 17.53 | 35.03 | — | — | 26.39 | — | — | 39.76 | — | — | 46.01 | 20.53 |
| Feb 25, 2009 | 25.23 | — | 6.28 | 14.45 | — | 12.70 | 18.23 | 10.91 | — | — | 13.91 | 17.31 | 10.17 |
| Feb 21, 2008 | 105.09 | — | 18.79 | 14.37 | — | 16.91 | 21.95 | 6.95 | — | — | 22.62 | 19.70 | 15.55 |
| Mar 16, 2007 | 938.14 | — | 20.98 | 16.71 | — | 23.84 | 25.83 | 17.41 | 50.71 | 25.89 | 27.68 | 24.33 | 10.29 |
Based on: 10-K (reporting date: 2023-12-31), 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), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-26), 10-K (reporting date: 2008-12-27), 10-K (reporting date: 2007-12-29), 10-K (reporting date: 2006-12-30).
Comparison to Sector (Semiconductors & Semiconductor Equipment)
First Solar Inc., P/E, long-term trends, comparison to sector (semiconductors & semiconductor equipment)
| First Solar Inc. | Semiconductors & Semiconductor Equipment | |
|---|---|---|
| Feb 27, 2024 | 18.65 | 49.31 |
| Feb 28, 2023 | — | 23.72 |
| Mar 1, 2022 | 17.16 | 25.08 |
| Feb 26, 2021 | 21.56 | 24.71 |
| Feb 21, 2020 | — | 19.59 |
| Feb 22, 2019 | 39.05 | 13.92 |
| Feb 23, 2018 | — | 24.36 |
| Feb 22, 2017 | — | 26.55 |
| Feb 24, 2016 | 12.93 | 15.22 |
| Feb 25, 2015 | 14.79 | 17.33 |
| Feb 26, 2014 | 14.87 | 17.07 |
| Feb 27, 2013 | — | 15.65 |
| Feb 29, 2012 | — | 12.72 |
| Feb 28, 2011 | 19.06 | 13.77 |
| Feb 22, 2010 | 15.06 | 55.18 |
| Feb 25, 2009 | 25.23 | 21.75 |
| Feb 21, 2008 | 105.09 | 23.45 |
| Mar 16, 2007 | 938.14 | 20.73 |
Based on: 10-K (reporting date: 2023-12-31), 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), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-26), 10-K (reporting date: 2008-12-27), 10-K (reporting date: 2007-12-29), 10-K (reporting date: 2006-12-30).
Comparison to Industry (Information Technology)
First Solar Inc., P/E, long-term trends, comparison to industry (information technology)
| First Solar Inc. | Information Technology | |
|---|---|---|
| Feb 27, 2024 | 18.65 | 36.13 |
| Feb 28, 2023 | — | 26.99 |
| Mar 1, 2022 | 17.16 | 29.75 |
| Feb 26, 2021 | 21.56 | 30.97 |
| Feb 21, 2020 | — | 23.40 |
| Feb 22, 2019 | 39.05 | 23.17 |
| Feb 23, 2018 | — | 23.55 |
| Feb 22, 2017 | — | 19.69 |
| Feb 24, 2016 | 12.93 | 16.54 |
| Feb 25, 2015 | 14.79 | 17.14 |
| Feb 26, 2014 | 14.87 | 14.15 |
| Feb 27, 2013 | — | 14.37 |
| Feb 29, 2012 | — | 13.71 |
| Feb 28, 2011 | 19.06 | 15.08 |
| Feb 22, 2010 | 15.06 | 21.50 |
| Feb 25, 2009 | 25.23 | 15.83 |
| Feb 21, 2008 | 105.09 | 36.48 |
| Mar 16, 2007 | 938.14 | 32.07 |
Based on: 10-K (reporting date: 2023-12-31), 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), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-26), 10-K (reporting date: 2008-12-27), 10-K (reporting date: 2007-12-29), 10-K (reporting date: 2006-12-30).