Track your investments for FREE with Simply Wall St, the portfolio command center trusted by over 7 million individual investors worldwide.

Enlight Renewable Energy (TASE:ENLT) recently reported higher revenue, net income, and adjusted EBITDA for the fourth quarter and full year 2025, while also outlining its expectations for continued growth in 2026.

See our latest analysis for Enlight Renewable Energy.

That backdrop of stronger reported revenue and earnings has coincided with a sharp rerating in the market, with the share price delivering a 74.13% year to date share price return and a very large 1 year total shareholder return, suggesting momentum has been building as investors reassess growth prospects and risks.

If this kind of move in renewables has your attention, it could be a good time to look at other power transition names through our 33 power grid technology and infrastructure stocks

After such strong share price gains and a very large 1 year total shareholder return, the key question now is whether Enlight Renewable Energy is still pricing in fresh upside or if the market already reflects its future growth potential.

Enlight Renewable Energy currently trades on a P/E of 91.5x, which is substantially higher than both its peer group and the broader Asian renewable energy industry. This indicates that the market is clearly pricing in strong earnings expectations at the current price of ₪261.20.

The P/E ratio compares the share price to earnings per share and is often used for companies that already report positive earnings, as Enlight Renewable Energy does. With earnings forecast to grow 34.8% per year and revenue forecast to grow 30.9% per year, the current multiple suggests investors are paying a premium for that projected growth profile.

However, the same data set also flags a few tensions. Earnings quality is constrained by a high level of non cash earnings, interest payments are not well covered by earnings, and shareholders have been diluted in the past year. In that context, the 91.5x P/E is described as expensive compared with a peer average of 73.2x and the Asian renewable energy industry average of 16.3x, which highlights how far the current valuation sits above sector norms.

See what the numbers say about this price — find out in our valuation breakdown.

Result: Price-to-earnings of 91.5x (OVERVALUED)

However, the story can change quickly if earnings do not keep pace with a 91.5x P/E, or if further shareholder dilution and high interest costs pressure returns.