Nextracker Valuation

Is NXT undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of NXT when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: NXT ($47.86) is trading below our estimate of fair value ($69.26)

Significantly Below Fair Value: NXT is trading below fair value by more than 20%.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for NXT?

Other financial metrics that can be useful for relative valuation.

NXT key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue2.6x
Enterprise Value/EBITDA11x
PEG Ratio1.6x

Price to Earnings Ratio vs Peers

How does NXT's PE Ratio compare to its peers?

The above table shows the PE ratio for NXT vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average23.1x
AYI Acuity Brands
20x8.0%US$7.8b
GNRC Generac Holdings
42.5x22.6%US$9.5b
ATKR Atkore
8.5x0.3%US$5.3b
NVT nVent Electric
21.4x0.5%US$12.3b
NXT Nextracker
22.4x13.9%US$7.0b

Price-To-Earnings vs Peers: NXT is good value based on its Price-To-Earnings Ratio (22.4x) compared to the peer average (23.1x).


Price to Earnings Ratio vs Industry

How does NXT's PE Ratio compare vs other companies in the US Electrical Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a21.4%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a21.4%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: NXT is expensive based on its Price-To-Earnings Ratio (22.4x) compared to the US Electrical industry average (20.8x).


Price to Earnings Ratio vs Fair Ratio

What is NXT's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

NXT PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio22.4x
Fair PE Ratio28.1x

Price-To-Earnings vs Fair Ratio: NXT is good value based on its Price-To-Earnings Ratio (22.4x) compared to the estimated Fair Price-To-Earnings Ratio (28x).


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst NXT forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$47.86
US$61.36
+28.2%
13.3%US$72.00US$37.00n/a28
Jul ’25US$46.12
US$61.29
+32.9%
13.2%US$72.00US$37.00n/a28
Jun ’25US$55.17
US$61.33
+11.2%
13.4%US$72.00US$37.00n/a27
May ’25US$42.87
US$62.41
+45.6%
12.9%US$71.00US$37.00n/a28
Apr ’25US$56.20
US$64.00
+13.9%
11.7%US$73.00US$37.00n/a27
Mar ’25US$57.40
US$63.26
+10.2%
12.4%US$73.00US$37.00n/a23
Feb ’25US$56.50
US$62.59
+10.8%
13.2%US$73.00US$37.00n/a22
Jan ’25US$46.85
US$52.15
+11.3%
9.6%US$61.00US$45.00n/a20
Dec ’24US$42.61
US$51.74
+21.4%
8.5%US$60.00US$45.00n/a19
Nov ’24US$33.70
US$51.74
+53.5%
8.5%US$60.00US$45.00n/a19
Oct ’24US$40.16
US$48.94
+21.9%
10.8%US$60.00US$35.00n/a17
Sep ’24US$43.13
US$49.20
+14.1%
11.1%US$60.00US$35.00n/a15
Aug ’24US$43.34
US$49.07
+13.2%
11.4%US$60.00US$35.00n/a15
Jul ’24US$39.81
US$42.15
+5.9%
9.3%US$50.00US$35.00US$46.1213
Jun ’24US$40.07
US$41.38
+3.3%
7.8%US$45.00US$35.00US$55.1713
May ’24US$30.87
US$38.86
+25.9%
8.9%US$45.00US$32.00US$42.8714
Apr ’24US$36.26
US$39.42
+8.7%
7.9%US$45.00US$33.00US$56.2012

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


Discover undervalued companies

Simply Wall Street Pty Ltd (ACN 600 056 611), is a Corporate Authorised Representative (Authorised Representative Number: 467183) of Sanlam Private Wealth Pty Ltd (AFSL No. 337927). Any advice contained in this website is general advice only and has been prepared without considering your objectives, financial situation or needs. You should not rely on any advice and/or information contained in this website and before making any investment decision we recommend that you consider whether it is appropriate for your situation and seek appropriate financial, taxation and legal advice. Please read our Financial Services Guide before deciding whether to obtain financial services from us.