Latest Ratios: P/E Ratio -7.7x · EV/EBITDA N/A · ROE -74.7%. (2012–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $3.2B | $1.7B | $776M | $5.4B | $16.5B | $15.7B | $16.8B | $4.8B | $1.7B | $1.7B | $544M |
| Enterprise Value | $3.1B | $1.6B | $1.3B | $5.8B | $16.4B | $15.9B | $16.7B | $4.6B | $1.5B | $1.5B | $438M |
| P/E Ratio → | -7.67 | — | — | 156.00 | 171.68 | 91.69 | 119.97 | 32.57 | 13.05 | 20.30 | 10.69 |
| P/S Ratio | 2.72 | 1.46 | 0.86 | 1.80 | 5.29 | 8.00 | 11.55 | 3.35 | 1.80 | 2.81 | 1.13 |
| P/B Ratio | 7.41 | 4.04 | 1.18 | 2.22 | 7.56 | 11.99 | 15.52 | 5.88 | 2.95 | 4.29 | 1.88 |
| P/FCF | 39.85 | 21.36 | — | — | — | 242.05 | 175.75 | 25.60 | 11.19 | 14.80 | 14.51 |
| P/OCF | 30.88 | 16.55 | — | — | 526.09 | 73.34 | 75.67 | 18.43 | 8.91 | 12.48 | 11.07 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 1.36 | 1.40 | 1.93 | 5.28 | 8.09 | 11.43 | 3.23 | 1.62 | 2.54 | 0.91 |
| EV / EBITDA | — | — | — | 59.04 | 76.05 | 64.41 | 95.67 | 21.25 | 9.97 | 15.70 | 6.03 |
| EV / EBIT | — | — | — | 67.42 | 90.37 | 83.30 | 99.99 | 25.12 | 10.86 | 15.39 | 7.00 |
| EV / FCF | — | 19.92 | — | — | — | 244.88 | 174.03 | 24.71 | 10.08 | 13.38 | 11.69 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 15.3% | 15.3% | -97.3% | 23.6% | 27.2% | 32.0% | 31.6% | 33.6% | 34.1% | 35.4% | 33.7% |
| Operating Margin | -24.1% | -24.1% | -189.5% | 1.4% | 5.3% | 10.5% | 9.8% | 13.3% | 14.9% | 15.0% | 14.0% |
| Net Profit Margin | -34.2% | -34.2% | -200.4% | 1.2% | 3.0% | 8.6% | 9.6% | 10.3% | 13.7% | 13.9% | 10.6% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | -74.7% | -74.7% | -117.7% | 1.5% | 5.4% | 14.1% | 14.8% | 21.2% | 26.6% | 24.5% | 18.6% |
| ROA | -16.9% | -16.9% | -50.1% | 0.8% | 2.6% | 6.3% | 7.1% | 11.9% | 16.0% | 15.8% | 12.3% |
| ROIC | -29.5% | -29.5% | -64.9% | 1.2% | 6.9% | 12.9% | 13.6% | 27.2% | 32.8% | 32.7% | 27.5% |
| ROCE | -19.2% | -19.2% | -64.7% | 1.1% | 5.8% | 9.5% | 9.3% | 21.1% | 22.3% | 21.0% | 20.2% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.99 | 0.99 | 1.15 | 0.30 | 0.34 | 0.54 | 0.61 | 0.07 | 0.04 | — | — |
| Debt / EBITDA | — | — | — | 7.52 | 3.41 | 2.89 | 3.80 | 0.27 | 0.13 | — | — |
| Net Debt / Equity | — | -0.27 | 0.73 | 0.16 | -0.02 | 0.14 | -0.15 | -0.20 | -0.29 | -0.41 | -0.37 |
| Net Debt / EBITDA | — | — | — | 4.04 | -0.22 | 0.74 | -0.94 | -0.77 | -1.10 | -1.66 | -1.45 |
| Debt / FCF | — | -1.44 | — | — | — | 2.83 | -1.72 | -0.89 | -1.11 | -1.42 | -2.82 |
| Interest Coverage | -3.84 | -3.84 | -91.16 | 5.54 | 16.81 | 17.86 | 15.80 | 31.48 | 55.07 | 58.59 | — |
Net cash position: cash ($540M) exceeds total debt ($423M)
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 2.17 | 2.17 | 1.95 | 3.70 | 3.26 | 3.26 | 3.94 | 2.14 | 3.00 | 3.67 | 4.82 |
| Quick Ratio | 1.48 | 1.48 | 1.33 | 2.08 | 2.44 | 2.53 | 3.18 | 1.74 | 2.37 | 3.03 | 3.87 |
| Cash Ratio | 0.72 | 0.72 | 0.56 | 0.96 | 1.15 | 1.33 | 2.36 | 0.73 | 1.40 | 1.85 | 2.55 |
| Asset Turnover | — | 0.54 | 0.34 | 0.65 | 0.73 | 0.68 | 0.60 | 0.95 | 0.97 | 0.95 | 1.13 |
| Inventory Turnover | 1.81 | 1.81 | 2.75 | 1.57 | 3.11 | 3.51 | 3.01 | 5.54 | 4.37 | 4.73 | 4.72 |
| Days Sales Outstanding | — | 82.42 | 138.63 | 95.75 | 124.27 | 98.02 | 81.38 | 97.88 | 78.61 | 86.13 | 67.57 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | — | — | — | 0.6% | 0.6% | 1.1% | 0.8% | 3.1% | 7.7% | 4.9% | 9.4% |
| FCF Yield | 2.5% | 4.7% | — | — | — | 0.4% | 0.6% | 3.9% | 8.9% | 6.8% | 6.9% |
| Buyback Yield | 0.0% | 0.0% | 6.5% | 0.2% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| Total Shareholder Yield | 0.0% | 0.0% | 6.5% | 0.2% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| Shares Outstanding | — | $60M | $57M | $57M | $58M | $56M | $53M | $50M | $48M | $45M | $44M |
Inventory Glut and Margin Erosion
As reported in recent financial data, SolarEdge's forward P/E of 4074.80 and P/S of 2.66 suggest that the market is struggling to price the company's recovery potential, as current multiples reflect a transition from a high-growth premium to a distressed, cyclical turnaround play for investors.
The extreme forward P/E multiple indicates that earnings estimates remain highly uncertain and potentially depressed by ongoing restructuring costs. Investors should monitor whether the P/S ratio provides a more reliable floor for valuation, given that the company's historical growth narrative has been replaced by a focus on inventory liquidation and margin stabilization.
Based on reported figures, SolarEdge's ROIC has deteriorated significantly, reaching -10.7% in 2026Q1, which highlights a sharp reversal from historical compounding as the company struggles to generate returns above its cost of capital during this period of severe operational contraction and asset under-utilization.
The persistent negative ROIC suggests that the capital invested in manufacturing capacity, such as the Sella 2 facility, is currently failing to contribute to shareholder value. This trend warrants further investigation into whether the company's core business model can return to historical profitability levels or if structural changes in the solar market have permanently impaired its return profile.
According to recent quarterly filings, the company's cash conversion cycle remains extended at 159 days in 2026Q1, driven by a DIO of 213 days, which suggests that SolarEdge is still grappling with significant inventory overhang despite recent efforts to accelerate channel sell-through and improve operational efficiency.
The elevated DIO compared to historical norms indicates that the company's supply chain remains misaligned with current end-market demand. While the recent reduction in the cash conversion cycle from its 2024 peaks is a positive signal, the continued reliance on inventory liquidation to drive cash flow suggests that operational efficiency remains highly sensitive to distributor purchasing behavior.
As disclosed in financial statements, SolarEdge's current ratio of 2.02 in 2026Q1 provides a basic liquidity cushion, yet this metric appears increasingly vulnerable to the quality of current assets, specifically the high levels of inventory that may require further write-downs if market conditions fail to improve.
While the current ratio appears adequate on the surface, the quick ratio of 1.36 suggests that the company's immediate liquidity is heavily dependent on the successful conversion of inventory into cash. Investors should monitor the company's ability to maintain these ratios without further eroding its equity base through additional operational losses.
Based on an analysis of the company's business model, the P/E ratio is a fundamentally flawed metric for SolarEdge in its current state, as it obscures the impact of massive non-recurring inventory write-downs and restructuring charges that distort the true underlying earning power of the firm.
Analysts should instead focus on EV/Sales or normalized free cash flow yields to assess the company's valuation, as these metrics are less sensitive to the accounting volatility inherent in the current turnaround phase. Relying on P/E ratios in this context may lead to misleading conclusions regarding the company's recovery trajectory and its competitive standing relative to peers.
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Quick answers to the most common questions about buying SEDG stock.
SolarEdge Technologies, Inc.'s current P/E ratio is -7.7x. The historical average is 69.9x.
SolarEdge Technologies, Inc.'s return on equity (ROE) is -74.7%. The historical average is -0.1%.
Based on historical data, SolarEdge Technologies, Inc. is trading at a P/E of -7.7x. Compare with industry peers and growth rates for a complete picture.
SolarEdge Technologies, Inc. has 15.3% gross margin and -24.1% operating margin.