Bloom Energy (BE): Assessing Valuation After Wyoming Power Plant Project Sparks AI Data Center Optimism

Bloom Energy, a leading provider of fuel cell technology, is in the spotlight after reports surfaced about its involvement in a proposed 900 MW power plant in Wyoming. This project would be Bloom's largest to date and could potentially power a massive new AI-oriented data center campus.

See our latest analysis for Bloom Energy.

Bloom Energy’s shares have been on a dramatic run as excitement around the Wyoming power project and soaring demand for AI-driven data center power solutions fueled a remarkable surge. In September alone, the share price jumped 59.7%. With a year-to-date gain of 2.86% and a 1-year total shareholder return of over 7%, momentum is clearly building as investors weigh the company’s role in shaping the next wave of clean energy infrastructure.

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After such a sharp rally powered by big AI-fueled expectations, the question remains whether Bloom Energy stock is now undervalued with more upside ahead, or if the market has already priced in much of that future growth.

Most Popular Narrative: 56.7% Overvalued

Despite analyst consensus raising Bloom Energy’s fair value to $57.63, the last close at $90.29 indicates a substantial premium being priced in by the market. The narrative builds its outlook on sector tailwinds and anticipated future profitability, which together support a bold growth story for the years ahead.

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. These trends are poised to drive continued operating margin and net margin expansion.

Read the complete narrative.

Want to know what’s driving this aggressive future price tag? The narrative centers on projected future revenue, profit margin expansion, and significant technology shifts. Which bullish assumptions are at the core of this forecast, and just how optimistic are its foundations? Unlock the full story to see exactly what powers this elevated valuation.

Result: Fair Value of $57.63 (OVERVALUED)

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

However, faster progress in battery storage or shifts away from natural gas could challenge Bloom’s growth story and bring the optimistic outlook into question.

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

Another View: DCF Sheds a Different Light

For a different perspective, our DCF model suggests Bloom Energy is trading just below its fair value. The current share price is $90.29, while the calculated fair value is $91.66. Although the DCF result points to a nearly balanced valuation, the question remains: does this present an opportunity, or is the optimism already reflected in the price?

Look into how the SWS DCF model arrives at its fair value.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Bloom Energy for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Build Your Own Bloom Energy Narrative

If you see the story differently, or would rather explore the numbers on your own terms, it takes just a few minutes to craft a personal outlook. 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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