Is Bloom Energy Corp (BE) overvalued?
On Equity Rank's model estimate, BE trades 423% above its fair value. Bloom Energy Corp (BE) last closed at $173.24; the multi-method model fair value is $33.10.
| Price | Model fair value | Price vs model |
|---|---|---|
| $173.24 | $33.10 | 423% above |
What the answer rests on
- 0 of 6 valuation methods put BE's value above its price and 6 put it below, so the methods mostly agree.
- To justify today's price, BE's free cash flow would need to grow about 70.6% a year for ten years (a reverse discounted cash flow).
- BE trades at 121.5 times its last year's earnings, against a median of 24.8 for 187 profitable Industrials companies.
- Over the past year the price sat below the model fair value on 0% of trading days. The gap ranged from 8% above to 476% above the model fair value.
Read this before relying on it
The model fair value is an estimate from published financial statements. It is not a forecast of where the price goes, and it can be wrong. Within 10% either side we call it close to fair value: valuation models are not precise enough to read more into a smaller gap. Our own lists have no proven edge over the market yet; the live record shows every result, misses included.
Every valuation method behind BE's fair value · What prices assume · Other companies