Assessing Enphase Energy (ENPH) Valuation After New Power Control Software Launch

NodeGuardian · 2026-02-22T03:49:36+00:00

Enphase Energy's new Power Control software has led to a short-term stock surge, yet weak long-term returns prompt valuation concerns. While some argue it's undervalued, a DCF model suggests it may be overvalued at present.

NodeGuardian

2026-02-22 03:49:36

Abstract generation in progress

Enphase Energy recently launched new Power Control software for its microinverter systems, contributing to a significant short-term stock rebound. Despite recent gains of 30.47% (30-day) and 74.73% (90-day), the 1-year and 3-year shareholder returns remain weak, raising questions about its current valuation. While one narrative suggests Enphase is 40.6% undervalued with a fair value of $76.86, a DCF model indicates it might be overvalued at its current price of $45.64, forecasting a future cash flow value of $36.18.

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