Does JinkoSolar Present an Opportunity After Its Recent 2.5% Share Price Jump in 2025?

If you are wrestling with the decision of what to do next with JinkoSolar Holding stock, you are not alone. With clean energy demand in focus and markets guessing what comes next for solar, JinkoSolar’s share price has seen its fair share of drama. Just in the past year, the stock has dropped by 20.4%, and that slide stretches to more than 50% over five years. Yet, even amid that volatility, there has been a spark of optimism, as seen by a 2.5% bump in the last week. This kind of movement leaves investors looking for context. Is the recent momentum a sign of new growth ahead, or just a blip in an ongoing slog?

Digging deeper, the company’s value score is a notable 5 out of 6, signaling that JinkoSolar appears undervalued in almost every major metric analysts use. That statistic alone is enough to make value-focused investors sit up and take notice, especially given the persistent volatility of renewable energy stocks. But what does “undervalued” really mean in this case, and how should you approach it?

This is where examining different valuation approaches becomes crucial. In the sections to come, we will break down the most common methods, consider what they reveal about JinkoSolar, and most importantly, discuss why the best way to understand the company’s true value might not be what you expect.

Why JinkoSolar Holding is lagging behind its peers

Approach 1: JinkoSolar Holding Discounted Cash Flow (DCF) Analysis

The Discounted Cash Flow (DCF) model is a powerful valuation approach that estimates a company’s true worth by projecting its future cash flows and discounting them back to today’s value. In other words, it provides an estimate of what all future cash flows would be worth if you received them in today’s money.

For JinkoSolar Holding, the latest twelve months (LTM) Free Cash Flow (FCF) stands at approximately CN¥5,044 Million. Analysts expect this number to fluctuate over the next decade, with projections for 2026 at about CN¥5,691 Million and 2035 reaching up to CN¥9,201 Million. These figures reflect an annualized growth trend as estimated by industry analysts for the initial five years, with subsequent years extrapolated by Simply Wall St’s model.

By discounting all these expected future cash flows, the DCF model calculates an intrinsic value of $173.06 per share for JinkoSolar. This valuation suggests the stock is currently 85.8% undervalued compared to its trading price.

Result: UNDERVALUED

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

Our Discounted Cash Flow (DCF) analysis suggests JinkoSolar Holding is undervalued by 85.8%. Track this in your watchlist or portfolio, or discover more undervalued stocks.

Approach 2: JinkoSolar Holding Price vs Sales

The Price-to-Sales (P/S) ratio is often the go-to valuation metric for companies where profitability can fluctuate due to industry cycles, expansions, or heavy investment periods. It is especially useful for solar and semiconductor players like JinkoSolar Holding, as it allows investors to focus on top-line performance regardless of near-term earnings volatility.

While growth prospects and business risks generally push the “normal” or “fair” P/S ratio higher or lower, a resilient and fast-growing company might justify a premium. Firms facing uncertainty or industry headwinds typically deserve a discount. As of now, JinkoSolar’s P/S ratio stands at just 0.11x. This is dramatically lower than the semiconductor industry average of 4.90x and the peer group’s 8.38x.

However, Simply Wall St’s “Fair Ratio” offers a more nuanced perspective by calculating the P/S multiple that is warranted based on JinkoSolar’s actual growth, profitability, market cap, and sector risk profile. For JinkoSolar, the Fair Ratio is 1.39x. This method goes beyond broad comparisons and provides an estimate that accounts for the company’s real-world prospects and challenges on its own terms.

Stacking up the company’s current 0.11x P/S ratio against the Fair Ratio of 1.39x shows that JinkoSolar is trading well below its fundamentally justified valuation using this metric.

Result: UNDERVALUED

PS 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 JinkoSolar Holding Narrative

Earlier we mentioned that there is an even better way to understand valuation, so let’s introduce you to Narratives. Narratives are a simple, yet transformational tool that let you connect your own story about a company, including your assumptions, perspective, and expectations, with a financial forecast and an estimate of its fair value.

Rather than just relying on static numbers or popular ratios, Narratives allow you to look beyond the surface and express what you believe will drive JinkoSolar’s future growth or could potentially present risks. In essence, a Narrative links the company’s business story, market context, and personal insights directly to financial outcomes. This is where real investing insight emerges.

Creating or exploring Narratives is easy and accessible through Simply Wall St’s Community page, used by millions of investors globally. By building your own or reviewing others’ Narratives, you can quickly compare a Fair Value (derived from your assumptions about future revenue, profit margins, and risks) to today’s share price, helping you decide if you want to buy, hold, or sell.

What makes Narratives powerful is that they are updated automatically with the latest news or earnings information, so your thesis is always relevant and can adjust with new market developments. For example, some investors see JinkoSolar’s expansion into energy storage and ongoing supply chain optimization as reasons to value it as high as $66.1, while others focus on fierce solar competition and set their fair value closer to $17. This highlights how Narratives empower you to invest according to your own view of the company’s future.

Do you think there's more to the story for JinkoSolar Holding? 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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