EnerSys (ENS): Exploring Valuation After 44% YTD Share Price Surge

EnerSys (ENS) has seen its stock climb more than 44% so far this year, which has caught the attention of investors interested in the battery and energy storage sector. The company's performance over the past 3 months is particularly impressive, with a gain of 30%.

See our latest analysis for EnerSys.

EnerSys’s share price has surged this year, building momentum after a standout quarter and reinforcing investor confidence in its growth story. Supported by a 44% year-to-date share price return and a three-year total shareholder return nearing 81%, the company is hitting its stride as optimism around energy storage solutions grows.

If EnerSys’s gains have you thinking about what’s next in the industrial tech landscape, broaden your search and discover fast growing stocks with high insider ownership

With such a strong run-up in EnerSys's share price, investors may wonder if the recent gains leave the stock undervalued, or if the market has already priced in all the future growth potential. Is there still a buying opportunity here?

Most Popular Narrative: 7.7% Undervalued

With EnerSys closing at $132.95, the most widely followed narrative places the company’s fair value at $144, suggesting more room to run. This signals momentum from improved growth and profitability expectations, with valuation supported by updated financial forecasts and sector tailwinds.

Growth in digital infrastructure, electrification, and automation is boosting demand for EnerSys' advanced storage solutions and fueling multi-year revenue and margin expansion. Strategic cost reductions, tech integration, and targeted acquisitions are widening EnerSys' market reach and driving structural improvements in profitability.

Read the complete narrative.

What is fueling this optimism? There is a bold mix of top-line ambition, ongoing margin gains, and a forward-looking multiple that would place EnerSys among industry growth leaders. Can you guess which financial lever holds the secret to the narrative’s fair value target? Unlock the full story to see the surprising assumptions propelling these expectations.

Result: Fair Value of $144 (UNDERVALUED)

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

However, continued uncertainty around trade policies and an overreliance on acquisitions could limit EnerSys’s ability to sustain its recent growth momentum.

Find out about the key risks to this EnerSys narrative.

Another View: DCF Model Paints a Different Picture

While the consensus narrative sees EnerSys as undervalued based on future growth and earnings multiples, our SWS DCF model sharply disagrees. The model estimates fair value at just $57.80 per share, which is well below today’s price and highlights a significant disconnect. Could the optimism be missing hidden risks, or is the DCF being too conservative?

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 EnerSys 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 920 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 EnerSys Narrative

If you have a different perspective or want to dive deeper into the numbers, you can craft your own narrative in just a few minutes. Shape the outlook your way with Do it your way.

A great starting point for your EnerSys research is our analysis highlighting 4 key rewards and 1 important warning sign 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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