FLNC Fluence Energy, Inc.
$24.80
Stable Earnings Power 40%
P/Adj-EPS × Normalized Multiple
Strong · Conviction

Overvalued

Trading 218.1% above fair value

You pay $24.80
Bear $6.38
Fair $7.80
Bull $9.22
Bear $6.38 -74.3% $0.12 × 27x P/E
Fair $7.80 -68.6% $0.12 × 33x P/E
Bull $9.22 -62.8% $0.12 × 39x P/E

Key Value Driver

Normalized P/E multiple (33x base case)

Implied Market Multiple 206.7x

Summary

Our base-case estimate uses a valuation based on adjusted earnings per share and a normalized price-to-earnings multiple. We then blend that result with the average analyst price target of $19.31 from 27 analysts, using a 25% weight on analyst consensus. That produces an estimated intrinsic value of $7.80 per share.

Warnings

Wall Street's average price target is $19.31 (from 27 analysts). Our estimate is 79% below the consensus -- consider that gap carefully.

Key Risks

  • Growth DCF inappropriate — terminal value assumptions dominate
  • EV/EBITDA misleading for regulated businesses where capex is mandated
  • Regulatory risk is a fat tail not visible in normal multiples