Enlight Renewable Energy (TASE:ENLT) has seen its stock climb over the past month, gaining 18% and extending its solid performance for the year. Investors are tracking these moves as the company delivers strong revenue growth and maintains a steady business outlook.

See our latest analysis for Enlight Renewable Energy.

Momentum has been strong for Enlight Renewable Energy, with a 1-month share price return of 18.45% adding to an impressive year-to-date climb. The company’s robust gains have been matched by an 86.26% total shareholder return over the last 12 months. This reflects investors’ growing confidence in its outlook and growth story.

If this kind of momentum has you looking for your next opportunity, now is a great time to broaden your search and discover fast growing stocks with high insider ownership

The big question for investors now is whether Enlight Renewable Energy’s rapid gains leave further upside on the table, or if the company’s strong performance is already fully reflected in today’s share price.

Price-to-Earnings of 39x: Is it justified?

Enlight Renewable Energy trades at a price-to-earnings (P/E) ratio of 39x, which is below the peer average of 44.1x. With a last close price of ₪111.7, this signals the market may see relative value in the shares compared to other companies in the sector.

The price-to-earnings ratio measures how much investors are willing to pay for each unit of current earnings. In fast-growing sectors like renewable energy, a higher P/E can suggest expectations for significant profit growth or strong confidence in future prospects.

While ENLT looks inexpensive next to similar peers, its P/E is much higher than the broader Asian Renewable Energy industry average of 16.6x. This could indicate expectations for accelerated growth or a unique position in the market. However, the competitive peer group comparison suggests that the current valuation is relatively favorable and may potentially offer a margin of safety for investors focused on earnings multiples.

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

Result: Price-to-Earnings of 39x (UNDERVALUED)

However, risks remain, including slowing net income growth and market volatility. These factors could challenge whether recent momentum and valuation continue to hold up.

Find out about the key risks to this Enlight Renewable Energy narrative.

Build Your Own Enlight Renewable Energy Narrative

If you would rather draw your own conclusions or take a different approach to the data, it’s possible to craft your own perspective in just a few minutes. Do it your way

A great starting point for your Enlight Renewable Energy research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.

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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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