Bloom Energy (BE): Assessing Valuation After a Sharp Year-to-Date Share Price Rerating

Recent performance and what is driving interest

Bloom Energy (BE) has quietly turned into a strong momentum story, with the stock up nearly 3% over the past week and almost tripling so far this year, far outpacing broader clean energy peers.

See our latest analysis for Bloom Energy.

Zooming out, Bloom Energy’s 294.78% year to date share price return and 281.24% one year total shareholder return show strong, building momentum as investors reprice its growth and risk profile.

If Bloom’s surge has you thinking more broadly about clean and tech enabled energy, it could be worth exploring fast growing stocks with high insider ownership for other fast moving opportunities.

But after such a sharp rerating, is Bloom Energy still trading at a meaningful discount to its fundamentals and analyst targets, or has the market already priced in most of the company’s future growth potential?

Most Popular Narrative Narrative: 18% Undervalued

With Bloom Energy last closing at $92.26 versus a narrative fair value of $112.50, the most followed view sees meaningful upside still on the table.

Ongoing product cost reductions and digital-twin-enabled operational improvements, fueled by AI-driven analytics from a large installed base, are lowering cost per watt and raising manufacturing efficiency, poised to drive continued operating margin and net margin expansion.

Read the complete narrative.

Want to see what kind of growth runway and profit transformation justify that higher value, plus the earnings multiple it assumes the market will pay?

Result: Fair Value of $112.50 (UNDERVALUED)

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

However, setbacks in manufacturing expansion or faster adoption of cheaper zero emissions alternatives could squeeze Bloom’s margins and challenge the current growth narrative.

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

Another Lens On Valuation

On simple sales based metrics, Bloom looks stretched. It is trading on a 12x price to sales ratio versus 5.2x for peers and 2.3x for the broader US Electrical industry, which is well above a fair ratio of 8.5x and leaves far less room for execution missteps.

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

Build Your Own Bloom Energy Narrative

If you see the story differently or want to dig into the numbers yourself, you can build a personalised view in minutes: Do it your way.

A great starting point for your Bloom Energy research is our analysis highlighting 3 key rewards and 4 important warning signs 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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