Fluence Energy (FLNC): Is Record Order Backlog Fueling a Valuation Disconnect After Latest Quarterly Highlights?

Fluence Energy (FLNC) delivered a record $1.4 billion in new orders last quarter, which lifted its backlog to $5.3 billion. This positions the company for strong revenue growth in 2026, even after missing Wall Street expectations.

See our latest analysis for Fluence Energy.

After a volatile few months, Fluence Energy’s share price has rebounded with real momentum, jumping 27.5% over the last week and delivering a striking 165% return over the past 90 days. While the one-year total shareholder return stands at just 4.4%, recent analyst upgrades and a record backlog are fueling a wave of optimism heading into 2026.

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With shares rallying on strong order wins and 2026 guidance, the real question is whether Fluence Energy remains undervalued at these levels or if the market is already factoring in all of next year’s growth potential.

Most Popular Narrative: 71% Overvalued

The current narrative assigns Fluence Energy a fair value far below its last close of $19.64, indicating that the market has moved well ahead of underlying expectations. This creates a clear tension between how analyst models are projecting the next stage for valuation.

Rapid global electrification and surging power demand, driven by data centers, transportation, and industrial sectors, are expected to sharply increase the need for grid resilience and flexibility. This may lead to substantial projected growth for large-scale battery storage, and could drive material revenue growth for Fluence over the next several years.

Read the complete narrative.

Which assumptions are powering this dramatic divergence from the current share price? The primary drivers and missing pieces are in the narrative’s bold bets on future earnings, margin improvements, and sector-wide adoption. The key question is whether this outlook holds up to scrutiny, or whether something significant is being overlooked.

Result: Fair Value of $11.47 (OVERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent tariff uncertainties and ongoing competition from international battery suppliers could present challenges to Fluence Energy’s growth expectations in the coming quarters.

Find out about the key risks to this Fluence Energy narrative.

Another View: Contrasting the Multiples Approach

While the market currently sees Fluence Energy as overvalued based on analyst targets, looking at its price-to-sales ratio tells a very different story. At 1.1x, Fluence is trading far below the US Electrical industry average of 2x and the peer group average of 23.4x, suggesting relative value. If the market moves closer to the fair ratio of 2.2x, investors could see meaningful upside. However, with such a large valuation gap, this could be an overlooked opportunity or a sign of risk.

See what the numbers say about this price — find out in our valuation breakdown.

Build Your Own Fluence Energy Narrative

If this perspective does not fit with your outlook, or you would prefer to analyze the numbers and form your own conclusions, you can craft a custom narrative in just a few minutes. Do it your way.

A great starting point for your Fluence Energy research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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