Does Bloom Energy’s 1,229.6% Price Surge Match Its True Value After Clean Energy Announcements?

• Wondering if Bloom Energy’s surging stock price matches up with genuine value, or if things have gotten a little overheated? You’re not alone. Today we’re diving straight into what the numbers have to say.
• Bloom Energy has turned heads with a 19.7% jump over the past week, a rise of 46.5% in the last month, and it’s up 1,229.6% over the past year.
• This significant increase follows a wave of headlines centered on clean energy policy momentum and new project wins, which have fueled investor excitement. Recent partnerships and strategic announcements in the hydrogen and renewable sectors have also added fresh optimism to the story.
• Despite all the hype, Bloom Energy’s valuation score stands at 0/6. This suggests it isn’t considered undervalued by any conventional metric at the moment. We’ll break down what goes into that score and the most common approaches. Plus, stick around to see if there’s a smarter way to think about value beyond the headline numbers.

Bloom Energy scores just 0/6 on our valuation checks. See what other red flags we found in the full valuation breakdown.

Approach 1: Bloom Energy Discounted Cash Flow (DCF) Analysis

The Discounted Cash Flow (DCF) model estimates a company’s intrinsic value by projecting future cash flows and discounting them back to today using a chosen rate. This process provides a data-driven way to assess whether a stock is undervalued or overvalued compared to its market price.

Bloom Energy’s most recent reported Free Cash Flow (FCF) sits at $94.6 Million. According to analyst consensus and further extrapolations, FCF is expected to grow significantly and reach approximately $1.45 Billion by 2029. Initial projections over the next five years are based on analyst estimates, while subsequent years rely on growth assumptions from Simply Wall St’s model. The underlying methodology is known as the 2 Stage Free Cash Flow to Equity model and balances near-term forecasts with longer-term extrapolation to estimate value.

Based on this DCF analysis, Bloom Energy’s estimated intrinsic value is $100.67 per share. However, with the current stock price sitting 31.3% above this valuation, DCF modeling suggests that the stock is overvalued relative to its projected cash flows.

Result: OVERVALUED

Our Discounted Cash Flow (DCF) analysis suggests Bloom Energy may be overvalued by 31.3%. Discover 830 undervalued stocks or create your own screener to find better value opportunities.

Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Bloom Energy.

Approach 2: Bloom Energy Price vs Sales (P/S Ratio)

For companies like Bloom Energy that are not yet consistently profitable, the Price-to-Sales (P/S) ratio is often the best go-to valuation metric. It compares the company’s market capitalization to its total sales, providing investors with an alternative lens for high-growth businesses where earnings may be volatile or negative.

Growth expectations and business risk both influence what qualifies as a normal or fair P/S ratio. Rapidly growing companies, or those with strong future prospects and lower perceived risk, can often justify higher P/S multiples. Meanwhile, sector norms and historical averages play a supporting role, but they rarely tell the whole story on their own.

Currently, Bloom Energy trades at an elevated P/S ratio of 17.2x, which is considerably higher than both the Electrical industry’s average of 2.2x and the peer group average of 6.1x. At a glance, this premium might seem cause for concern, but it is important to dig deeper.

This is where Simply Wall St’s proprietary "Fair Ratio" comes in. Unlike simple peer or sector comparisons, the Fair Ratio incorporates a range of factors unique to Bloom Energy, including its expected sales growth, profit margins, risk profile, market cap, and its position in the industry. For Bloom Energy, this Fair Ratio stands at 9.8x, providing a more customized benchmark for what the market should pay given the company's characteristics.

When we compare the Fair Ratio (9.8x) to Bloom’s current P/S multiple (17.2x), the stock appears significantly overvalued on this basis. The valuation premium is well above what would be justified, even after considering the company’s standout growth profile.

Result: OVERVALUED

PS ratios tell one story, but what if the real opportunity lies elsewhere? Discover 1406 companies where insiders are betting big on explosive growth.

Upgrade Your Decision Making: Choose your Bloom Energy Narrative

Earlier we mentioned that there is an even better way to understand valuation, so let us introduce you to Narratives. A Narrative is your personal investment story; it is the perspective you take on what a company like Bloom Energy will achieve, why you think it will succeed (or not), and how those beliefs translate directly into your own forecasts for revenue, margins, and fair value.

Instead of just relying on standard metrics, Narratives connect the dots between the company’s actual business outlook and a financial forecast, then turn that into a tailored estimate of fair value. This approach is available to anyone on Simply Wall St’s Community page, where millions of investors share and compare their Narratives in just a few clicks.

Narratives empower you to decide for yourself whether to buy or sell. You can track your fair value against the current price, update your view as new information or news emerges, and see instantly how events reshape your expectations. Because Narratives are dynamic, they automatically adapt as earnings, guidance, or surprises hit the market, helping you stay up to date and confident.

For example, while some investors see Bloom Energy trading above $48 as justified by rapid AI and data center adoption, others believe the fair value is closer to $10, pointing to competition and execution risks. The Narrative you choose can have a dramatic impact on how you interpret today’s share price.

Do you think there's more to the story for Bloom Energy? Head over to our Community to see what others are saying!

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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