Enlight Renewable Energy (TASE:ENLT): Evaluating Valuation After Upbeat Q3 Results and Upgraded 2025 Guidance

Enlight Renewable Energy (TASE:ENLT) just raised its full-year 2025 revenue and EBITDA guidance after announcing third quarter results that showed pronounced jumps in both revenue and net income. Management also emphasized the company's focus on expansion and stability. See our latest analysis for Enlight Renewable Energy. Enlight’s share price has nearly doubled year-to-date, delivering a 96.6% gain amid a wave of major project wins, fresh guidance upgrades, and landmark financing deals like the $1.4 billion Snowflake A agreement. This builds on a solid longer-term track record, with a one-year total shareholder return of 97.4%. This highlights the market’s growing conviction in Enlight’s global expansion and strategic execution. If strong momentum and investor optimism in renewables appeal to you, it may be worth exploring other fast-rising opportunities. Now is a great moment to discover fast growing stocks with high insider ownership But with such rapid share price appreciation and upbeat financial projections already on the table, is Enlight still undervalued, or are investors now paying up for future growth? Could there still be a buying opportunity, or has the market already priced in the next phase? Price-to-Earnings of 40.5x: Is it justified? Enlight Renewable Energy shares currently trade at a price-to-earnings (P/E) ratio of 40.5x, which is well above the regional renewable energy industry’s average. This suggests a premium on its recent growth and future prospects. The price-to-earnings ratio measures how much investors are willing to pay today for a company’s current earnings. This makes it a key tool for valuing growth businesses like Enlight. A higher P/E can signal confidence in the company’s growth trajectory, but it can also indicate that the stock is potentially overvalued if future earnings do not meet expectations. Compared to peers, Enlight’s 40.5x P/E is notably below the peer group average of 46.4x but more than double the Asian industry average of 16.9x. This places ENLT in a unique position, as it is priced at a premium relative to the broader industry, yet more attractively than direct competitors. See what the numbers say about this price — find out in our valuation breakdown. Result: Price-to-Earnings of 40.5x (OVERVALUED) However, sustained high valuations could face pressure if project delays or policy shifts reduce Enlight's anticipated growth trajectory in the coming quarters. Find out about the key risks to this Enlight Renewable Energy narrative. Build Your Own Enlight Renewable Energy Narrative If you see the story differently or want to dig into the numbers yourself, you can craft your own perspective on Enlight in just a few minutes. Do it your way A great starting point for your Enlight Renewable Energy research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision. Looking for more investment ideas? Great investment opportunities don’t end with Enlight. Make your next smart move by checking out unique stocks filtering through our specialized Simply Wall Street screeners. There is more potential waiting for you than you might expect. Uncover the potential for steady income by scanning for generous yields with these 16 dividend stocks with yields > 3%, offering attractive payouts across diverse sectors. Jump on the cutting edge of healthcare innovation by zeroing in on these 32 healthcare AI stocks, powering advancements in patient care and medical technology. Catch opportunities before they hit the mainstream with these 3585 penny stocks with strong financials, combining strong fundamentals and growth prospects in emerging market niches. 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.