Price to Earnings (P/E)
since 2015
Calculation
SolarEdge Technologies Inc., P/E, long-term trends, calculation
| P/E | = | Share price1, 2, 3 | ÷ | Earnings per share1 (EPS) | EPS1 | = | Net income1 (in thousands) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Feb 22, 2023 | 177.05 | = | 295.71 | ÷ | 1.67 | 1.67 | = | 93,779 | ÷ | 56,146,608 | |
| Feb 22, 2022 | 76.83 | = | 246.07 | ÷ | 3.20 | 3.20 | = | 169,170 | ÷ | 52,818,655 | |
| Feb 19, 2021 | 118.36 | = | 321.99 | ÷ | 2.72 | 2.72 | = | 140,322 | ÷ | 51,581,559 | |
| Feb 27, 2020 | 42.31 | = | 125.95 | ÷ | 2.98 | 2.98 | = | 146,549 | ÷ | 49,235,498 | |
| Feb 28, 2019 | 15.50 | = | 42.26 | ÷ | 2.73 | 2.73 | = | 128,833 | ÷ | 47,255,226 | |
| Feb 20, 2018 | 24.74 | = | 47.45 | ÷ | 1.92 | 1.92 | = | 84,172 | ÷ | 43,891,212 | |
| Aug 17, 2016 | 9.48 | = | 17.76 | ÷ | 1.87 | 1.87 | = | 76,609 | ÷ | 40,898,197 | |
| Aug 20, 2015 | 45.77 | = | 24.60 | ÷ | 0.54 | 0.54 | = | 21,121 | ÷ | 39,300,386 |
Based on: 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: 2016-06-30), 10-K (reporting date: 2015-06-30).
1 US$
2 Data adjusted for splits and stock dividends.
3 Closing price as at the filing date of SolarEdge Technologies Inc. Annual Report.
The financial data from 2015 to 2023 reveals a period of substantial share price appreciation coupled with significant volatility in valuation multiples. While earnings grew steadily for much of the period, the Price-to-Earnings (P/E) ratio expanded aggressively toward the end of the timeline, suggesting a divergence between market pricing and actual earnings performance.
- Share Price Trajectory
- The share price experienced an overall upward trend, rising from 24.60 US$ in 2015 to a peak of 321.99 US$ in 2021. Despite a correction in 2022, the price remained elevated at 295.71 US$ by 2023, reflecting a significant long-term increase in market valuation.
- Earnings Per Share (EPS) Performance
- EPS demonstrated a general growth trend from 0.54 US$ in 2015 to a peak of 3.20 US$ in 2022. However, a sharp contraction occurred in 2023, with EPS falling to 1.67 US$, representing a nearly 48% decrease from the prior year's peak.
- Price-to-Earnings (P/E) Ratio Analysis
- The P/E ratio exhibited extreme fluctuations, indicating shifting investor sentiment. After reaching a low of 9.48 in 2016, the ratio began a steep ascent starting in 2020. The ratio peaked at 177.05 in 2023; this surge was driven by the combination of a sustained high share price and a significant drop in EPS, resulting in a valuation that is highly aggressive relative to current earnings.
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Comparison to Competitors
SolarEdge Technologies Inc., P/E, long-term trends, comparison to competitors
| SolarEdge Technologies 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 22, 2023 | 177.05 | 96.16 | 31.21 | 13.55 | 20.70 | 14.54 | 16.89 | 13.77 | — | 6.62 | 68.08 | 9.75 | 18.88 |
| Feb 22, 2022 | 76.83 | 45.54 | 68.31 | 22.05 | 40.73 | 10.59 | 25.97 | 21.03 | — | 13.38 | 78.54 | 17.15 | 20.38 |
| Feb 19, 2021 | 118.36 | 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 27, 2020 | 42.31 | 169.62 | 31.04 | 20.25 | 47.09 | 13.91 | 18.44 | 13.64 | — | 7.98 | 22.77 | 22.03 | 24.47 |
| Feb 28, 2019 | 15.50 | 68.76 | 22.17 | 9.75 | 8.14 | 10.41 | 23.02 | 11.70 | 20.02 | 3.40 | 48.05 | — | 18.05 |
| Feb 20, 2018 | 24.74 | 282.39 | 44.94 | 16.16 | 63.27 | 22.15 | 15.04 | 15.33 | 372.92 | 9.20 | 36.34 | 31.96 | 27.77 |
| Aug 17, 2016 | 9.48 | — | 26.07 | 20.68 | — | 16.72 | 17.18 | 15.81 | — | — | 28.95 | 17.37 | 21.45 |
| Aug 20, 2015 | 45.77 | — | 27.06 | 15.88 | 28.48 | 11.85 | 22.54 | 17.37 | 17.70 | 6.25 | 19.88 | 17.18 | 17.66 |
Based on: 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: 2016-06-30), 10-K (reporting date: 2015-06-30).
Comparison to Sector (Semiconductors & Semiconductor Equipment)
SolarEdge Technologies Inc., P/E, long-term trends, comparison to sector (semiconductors & semiconductor equipment)
| SolarEdge Technologies Inc. | Semiconductors & Semiconductor Equipment | |
|---|---|---|
| Feb 22, 2023 | 177.05 | 23.72 |
| Feb 22, 2022 | 76.83 | 25.08 |
| Feb 19, 2021 | 118.36 | 24.71 |
| Feb 27, 2020 | 42.31 | 19.59 |
| Feb 28, 2019 | 15.50 | 13.92 |
| Feb 20, 2018 | 24.74 | 24.36 |
| Aug 17, 2016 | 9.48 | 26.55 |
| Aug 20, 2015 | 45.77 | 15.22 |
Based on: 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: 2016-06-30), 10-K (reporting date: 2015-06-30).
Comparison to Industry (Information Technology)
SolarEdge Technologies Inc., P/E, long-term trends, comparison to industry (information technology)
| SolarEdge Technologies Inc. | Information Technology | |
|---|---|---|
| Feb 22, 2023 | 177.05 | 26.99 |
| Feb 22, 2022 | 76.83 | 29.75 |
| Feb 19, 2021 | 118.36 | 30.97 |
| Feb 27, 2020 | 42.31 | 23.40 |
| Feb 28, 2019 | 15.50 | 23.17 |
| Feb 20, 2018 | 24.74 | 23.55 |
| Aug 17, 2016 | 9.48 | 19.69 |
| Aug 20, 2015 | 45.77 | 16.54 |
Based on: 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: 2016-06-30), 10-K (reporting date: 2015-06-30).