The BE Stock is Overvalued After Their 18% Earnings Jump
Is Bloom Energy a Good Stock to Buy After their Recent Earnings Report?
Bloom energy corporation (NYSE: BE) operates within the Electrical Equipment & Parts industry. In this analysis, I will use a combination of BE’s key financial metrics and ratios to determine a price prediction for the BE stock, showing you my approach to calculating a BE stock forecast.
My BE Stock Forecast is $26.06
The Bloom energy corporation stock price prediction of $26.06 was derived from 2 main valuation methods (which are averaged for the final price target you see above). Furthermore, this overall valuation implies that the BE stock is slightly overvalued and its stock should decrease by roughly 11%.
- Bloom Energy’s Forward EPS and PE
- Bloom Energy Comparable Companies Analysis
Method #1: BE Stock Forecast Using Forward PE and EPS
BE’s forward Earnings Per Share is estimated to reach $0.83 by 2024. Additionally, BE’s forward Price to Earnings has been said to reach 53.27 by 2024. By having both BE’s forward P/E and EPS, we can multiply them together to reach a BE stock forecast of $44.21 per share
Method #2: Using Comparable Analysis to Determine a BE Stock Forecast
Who are BE’s Competitors?
These companies were automatically pulled from Utradea’s “peers” field.
Using a Comparable Analysis to Determine a BE Price Forecast
BE’s P/S ratio is 5.3, compared to the average P/S ratio of BE’s peers being 0.95. The BE is currently overvalued and should experience a decrease of -82.04% to be at fair value (based on BE’s P/S compared to the P/S of their peers).
BE’s Current Ratio is 2.09, compared to the average current ratio of BE’s peers being 2. BE is currently undervalued and its share price should increase by 4.25% to be at fair value.
Taking both these into consideration, the BE stock is overvalued, and should decrease by -38.90% to reach its “fair value”. Applying this to BE’s current price of $29.30 yields a BE stock forecast of $17.90.
What is the Analyst Consensus?
Currently, there are 31 analyst ratings for BE, which are distributed as follows:
As you may have been able to tell 54.84% of analysts have given the BE stock a ‘buy” rating. Furthermore, the rest of the ratings are all “hold” ratings, which is also somewhat bullish (no “sell” ratings)
Concluding Thoughts on Bloom Energy
Since my overall BE stock forecast is $26.06 per share and BE’s current share price is $29.3. I would go against the analysts and say that the BE stock is a sell.
Let me know what you think, happy to dive into other aspects of BE to help you make an informed investment decision.
Originally published at https://utradea.com.