Is Bloom Energy’s 349% Surge in 2025 Still Supported by Its Fundamentals?

• If you are wondering whether Bloom Energy is still a smart buy after its massive run, or if you are late to the party, you are in the right place. This article focuses on what the current share price really implies.
• After a blistering 349.3% gain year to date and 301.7% over the last year, the stock has still been choppy, with an 11.4% rise in the past week but a 20.6% pullback over the last 30 days that hints at shifting risk appetite.
• Recent headlines have focused on Bloom Energy's positioning in clean hydrogen and distributed power, including new partnerships and project announcements that highlight growing demand for reliable, lower carbon energy solutions. At the same time, market chatter around policy incentives and the long term viability of hydrogen infrastructure has kept sentiment swinging between enthusiasm and caution.
• On our framework, Bloom Energy scores a 2/6 valuation score, suggesting pockets of value in some areas but clear stretch in others. In this article, we will break down what different valuation approaches say about the stock, and then finish with a more holistic way to think about its true worth.

Bloom Energy scores just 2/6 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

A Discounted Cash Flow model estimates what a company is worth by projecting the cash it could generate in the future and discounting those cash flows back to today in dollar terms.

Bloom Energy currently produces around $94.6 million in free cash flow. Analysts expect this to increase as the business scales. Based on a two stage free cash flow to equity model, analyst forecasts and Simply Wall St extrapolations indicate free cash flow could reach roughly $1.5 billion by 2029, with further growth assumed into the early 2030s.

When these projected cash flows are discounted back to today, the model arrives at an intrinsic value of about $148 per share. Compared with the current share price, this implies the stock trades at roughly a 29.0% discount, indicating the market price may not fully reflect the assumed growth path in the model.

Result: UNDERVALUED (based on this DCF model)

Our Discounted Cash Flow (DCF) analysis suggests Bloom Energy is undervalued by 29.0%. Track this in your watchlist or portfolio, or discover 925 more undervalued stocks based on cash flows.

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

For companies like Bloom Energy that are still building toward consistent profitability, the price to sales (P/S) ratio is often a more practical yardstick than earnings based metrics. It focuses on how much investors are paying for each dollar of revenue, which is particularly useful when profits are volatile or still developing.

In general, higher growth expectations and lower perceived risk support a higher sales multiple, while slower growth or elevated risk usually mean a lower, more conservative ratio is appropriate. Bloom Energy currently trades on a P/S of about 13.65x, which is well above the Electrical industry average of roughly 2.09x and the peer group average of around 2.79x. This indicates that the market is already pricing in strong growth and a favorable outlook.

Simply Wall St’s proprietary Fair Ratio seeks to refine this comparison by estimating the P/S multiple a stock should command after accounting for its growth profile, profitability, industry, size, and risk factors. For Bloom Energy, this Fair Ratio is calculated at 8.48x, which is substantially below the current 13.65x. On this framework, the stock appears to be trading ahead of what its fundamentals would justify.

Result: OVERVALUED

PS ratios tell one story, but what if the real opportunity lies elsewhere? Discover 1441 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. Let us introduce you to Narratives, which are simply your own story about Bloom Energy that connects what you believe about its products, competitive position, and industry tailwinds to specific forecasts for revenue, margins, and cash flows. You can then connect those forecasts to a Fair Value that you can compare with the current share price to help assess whether it looks attractive on Simply Wall St’s Community page, where millions of investors share these dynamic, auto updated views as new earnings or news arrives. One investor might build a bullish Bloom Energy Narrative around rapid AI driven power demand, strong policy support, and a Fair Value near the higher end of recent targets. Another investor could frame a far more cautious Narrative that focuses on natural gas reliance, execution risk, and competition, leading to a much lower Fair Value that helps them justify avoiding or trimming the stock at today’s 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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