Assessing Solaris Energy Infrastructure After 295.8% Surge and Q1 Revenue Beat in 2025

Thinking about what to do with Solaris Energy Infrastructure shares right now? You’re definitely not alone. This stock has been eye-catching on watchlists thanks to a jaw-dropping 295.8% jump over the past year. The longer time frames are just as impressive. In just the last month, the price soared by 70.5%. Year to date, it’s up 86.4%. If you’d held it since 2019, you’d be sitting on returns of 1,016.7%. These kinds of numbers always spark the same questions: Has the market caught onto a new phase of growth, or is investor optimism running ahead of reality?

Recent buzz has surrounded broader shifts in energy infrastructure, as investors continue chasing companies positioned to benefit from the green transition. This sector’s momentum has been a catalyst for Solaris, with its stock routinely outpacing peers on any signs of positive sentiment.

Of course, phenomenal share price movement often comes with the nagging question of value. Solaris Energy Infrastructure holds a valuation score of 2 out of 6, meaning it currently screens as undervalued by 2 of the 6 key valuation checks we use. So, how does that stack up against the parade of gains? In the next section, we’ll break down these valuation approaches and consider whether they tell the whole story, or if there’s a smarter way to judge what this stock is really worth.

Solaris Energy Infrastructure scores just 2/6 on our valuation checks. See what other red flags we found in the full valuation breakdown.

Approach 1: Solaris Energy Infrastructure Discounted Cash Flow (DCF) Analysis

The Discounted Cash Flow (DCF) model estimates a company's value by projecting future cash flows and then discounting them back to today's dollars. This approach helps investors understand what today's fair price would be, given how much cash the business could realistically generate in the future.

For Solaris Energy Infrastructure, the latest reported Free Cash Flow (FCF) stands at -$193.2 million. While current cash flows are negative, analysts forecast a substantial rebound with FCF expected to hit $408 million by 2028. These projections suggest a dramatic turnaround, with FCF forecasts continuing to rise gradually through 2035, based on a combination of analyst inputs and extrapolated growth rates.

By plugging these cash flow estimates into the DCF model, Simply Wall St calculates an intrinsic value for the stock of $118.29 per share. This is 53.6% higher than the current share price. This signals that the stock is trading well below what the model considers fair value based on future cash flow potential.

Result: UNDERVALUED

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

Our Discounted Cash Flow (DCF) analysis suggests Solaris Energy Infrastructure is undervalued by 53.6%. Track this in your watchlist or portfolio, or discover more undervalued stocks.

Approach 2: Solaris Energy Infrastructure Price vs Earnings

The price-to-earnings (PE) ratio is a go-to metric for valuing profitable companies like Solaris Energy Infrastructure because it links the company’s market price to its actual earnings power. It is a direct way for investors to weigh how much they are paying for each dollar of profit. Generally, higher expected growth and lower business risk can justify a higher PE ratio, while slower growth or greater risk will pull it lower. This is a useful lens when thinking about whether a stock is expensive or cheap.

Right now, Solaris is trading at a PE ratio of 114.6x, which is dramatically above both the Energy Services industry average of 14.3x and the peer average of 24.0x. At first glance, that kind of premium might raise eyebrows. However, simple comparisons can be misleading, especially for companies in transition or with unique growth outlooks.

This is where Simply Wall St’s “Fair Ratio” comes in. The Fair Ratio is a proprietary metric that incorporates specific factors like expected earnings growth, the company’s risk profile, profit margins, overall industry trends, and Solaris’s market capitalization. By accounting for these details, the Fair Ratio provides a far more tailored estimate of what a reasonable PE should be compared to only looking at peer or industry averages, which may not reflect the company’s unique situation.

For Solaris, the Fair Ratio is calculated at 22.6x, substantially lower than the current PE of 114.6x. This wide gap signals that the stock is priced well above what would typically be justified by its growth prospects and risk profile according to this model.

Result: OVERVALUED

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

Upgrade Your Decision Making: Choose your Solaris Energy Infrastructure Narrative

Earlier we mentioned that there is an even better way to understand valuation, so let us introduce you to Narratives. A Narrative is a simple, accessible tool that lets you combine your story or perspective about a company with your estimates of its future revenue, earnings, and margins, resulting in your own personal “fair value.” Narratives connect the dots between how you see Solaris Energy Infrastructure’s business evolving, the numbers you project, and what the shares might really be worth. This makes complex investing decisions approachable for everyone.

Available on Simply Wall St’s Community page, which is used by millions of investors, Narratives empower you to make smart buy or sell decisions by directly comparing your Fair Value to the current Price. What makes Narratives especially powerful is that they update automatically as new earnings reports or breaking news become available, so your outlook always reflects the latest information. Different investors naturally see things differently. For example, the most optimistic Narrative on Solaris expects the stock to hit $50.00, while the least bullish projects only $38.00. This demonstrates how easy it is to create, test, and compare distinct outlooks quickly and visually.

Do you think there's more to the story for Solaris Energy Infrastructure? Create your own Narrative to let the Community know!

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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