Finding the Most Undervalued Green Energy Company

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 |  Includes: CSIQ, FSLR, HQCL, JASO, SOL, SPWR, STP, TSL, YGE
by: Kelvin Schulle

Although governments all over the world are investing in green energy and investors are increasingly watching the renewable energy sector, valuation is still the key factor to getting the best bang from your buck.

Following is a comparison among solar names (data from Yahoo Finance and Etrade). The undervalued indicator is calculated by current stock price dividedby 2010 EPS, with the lowest number meaning most undervalued. Several names appears to be most undervalued, though this may be caused by the company's under-exposure to investment circles. It should not take long for Wall Street to realize its value.


Name EPS Q3 EPS2010 Market Cap PPS PPS/EPS2010 undervalued indicator #
JASO 10c 23c $831M $4.95 21.5 7
SOLF 37c 117c $370M $7.47 6.38 1
SOL -0.14c 40c $651M $4.6 11.5 2
STP 16c 66c $2.7B $17.05 25.75 9
YGE 12c 76c $2.3B $16.03 21.1 8
TSL 129c 328c $1.5B $49 14.9 5
CSIQ 69c 185c $1.1B $23.79 12.4 3
SPWR 42c 179c $1.3B $24.45 13.6 4
FSLR 179c 658c $11.5B $135.18 20.5 6
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Disclosure: long FSLR