Valuation - First Solar Inc.

A Valuation of First Solar Inc. (NASDAQ: FSLR) on 27 October 2020

A Valuation of First Solar Inc. (NASDAQ: FSLR) on 27 October 2020

The Summary

First Solar, Inc. is a U.S. incorporated, and listed, manufacturer of solar panels, and utility-scale solar power plants and supporting services. The firm reports in USD, has a complex tax structure and is subject to volatile tariff and regulatory requirements. I have valued the business in USD.

Market Price: $82.36
Est. Value: $80.07
Rating: ‘Hold’

The Story

First Solar Inc., the biggest solar panel maker in the Western Hemisphere, is essentially two businesses: the first is the production and sale of solar modules, while the second is a solar systems business (solar power systems, EPC services, O&M services, and a tiny intermittent energy generation division).

First Solar manufactures a proprietary advanced thin-film semiconductor module that is proven to deliver more usable energy per nameplate watt than competing technologies. Their manufacturing process enables cost competitiveness while their module techno…