Is It Time To Reevaluate First Solar (FSLR) After Its Recent Share Price Pullback?

Simply Wall St

Fri, January 9, 2026 at 12:09 AM EST 4 min read

• Many investors are wondering whether First Solar is still fairly priced after its strong run, and whether the current share price offers a margin of safety or leaves limited room for error.

• The stock last closed at US$246.26, delivering a 28.8% return over 1 year and a 132.2% return over 5 years, despite a 5.7% decline over the past 7 days and a 10.2% decline year to date.

• Recent attention on solar and broader clean energy companies has kept First Solar on many investors’ watchlists. Sector-level policy headlines often influence sentiment around the stock. These shifts in attention and perceived risk can help explain why the share price may move sharply over shorter periods, even when long-term themes have not changed significantly.

• Based on our checks, First Solar scores a 4 out of 6 valuation rating. This suggests that some measures flag it as potentially undervalued while others are less conclusive. Next, we will walk through the key valuation approaches and then bring them together to form a clearer view of value.

Find out why First Solar’s 28.8% return over the last year is lagging behind its peers.

A Discounted Cash Flow, or DCF, model estimates what a company could be worth today by projecting its future cash flows and discounting them back to a present value using a required rate of return.

For First Solar, the model uses a 2 Stage Free Cash Flow to Equity approach. The latest twelve month free cash flow is reported as a loss of $22.42 million. From there, analysts provide several years of forecasts, and Simply Wall St extends those projections further, with free cash flow expected to be $3.35b in 2030, all expressed in $.

Across the ten year forecast period, projected free cash flows between 2026 and 2035 are discounted back to today, which gives the total equity value. On this basis the estimated intrinsic value per share is US$303.80.

Compared to the recent share price of US$246.26, the DCF suggests the stock trades at an implied 18.9% discount under these assumptions.

Result: UNDERVALUED

Our Discounted Cash Flow (DCF) analysis suggests First Solar is undervalued by 18.9%. Track this in your watchlist or portfolio, or discover 881 more undervalued stocks based on cash flows.

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

For profitable companies, the P/E ratio is a useful shorthand because it links what you are paying directly to the earnings the business is currently generating. It gives you a quick way to compare how the market is pricing each dollar of profit across different companies.