Enterprise Value (EV)
Current Enterprise Value (EV)
SolarEdge Technologies Inc., current enterprise value calculation
| Current share price (P) | $295.71 |
| No. shares of common stock outstanding | 47,255,226 |
| US$ in thousands | |
| Common equity (market value)1 | 13,973,843) |
| Add: Non-controlling interests (per books) | —) |
| Total equity | 13,973,843) |
| Add: Short-term finance lease liabilities (per books) | 3,263) |
| Add: Convertible senior notes, net (per books) | 624,451) |
| Add: Long-term finance lease liabilities (per books) | 45,385) |
| Total equity and debt | 14,646,942) |
| Less: Cash and cash equivalents | 783,112) |
| Less: Marketable securities | 241,117) |
| Enterprise value (EV) | 13,622,713) |
Based on: 10-K (reporting date: 2022-12-31).
1 Common equity (market value) = Share price × No. shares of common stock outstanding
= 295.71 × 47,255,226
Historical Enterprise Value (EV)
SolarEdge Technologies Inc., EV calculation
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).
1 Data adjusted for splits and stock dividends.
2 Closing price as at the filing date of SolarEdge Technologies Inc. Annual Report.
3 2022 Calculation
Common equity (market value) = Share price × No. shares of common stock outstanding
= 295.71 × 56,146,608
The financial trajectory between 2018 and 2022 is characterized by a period of rapid expansion in valuation, followed by a correction and subsequent recovery. A significant upward trend is observed from 2018 through 2020, where the market value of common equity increased from approximately 2 billion US$ to over 16.6 billion US$. Although a contraction occurred in 2021, the valuation rebounded by the end of 2022, returning to levels consistent with the 2020 peak.
- Enterprise Value (EV) Dynamics
- The Enterprise Value consistently mirrors the fluctuations of the market value of common equity, growing from 1.69 billion US$ in 2018 to 16.25 billion US$ in 2022. Notably, the EV remains lower than the market value of equity across all reporting periods. This pattern indicates a net cash position, where the company's cash and cash equivalents exceed its total debt, thereby reducing the theoretical cost of acquisition.
- Capital Structure and Leverage
- A low-leverage capital structure is evident, as total equity and debt remain closely aligned with total equity. The narrow margin between these two figures suggests that debt plays a minimal role in the company's overall financing strategy. The stability of this relationship throughout the five-year period indicates a conservative approach to debt accumulation despite the massive increase in market capitalization.
- Valuation Volatility
- A period of high volatility is observed between 2020 and 2022. After reaching a peak in 2020, the market value of common equity and the corresponding Enterprise Value experienced a decline of approximately 21% in 2021, before recovering by approximately 27% in 2022. This fluctuation suggests sensitivity to external market conditions or investor sentiment during this interval.
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