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    Enlight Renewable Energy (TASE:ENLT) Google Deal And 2028 Revenue Goal Put Valuation In Focus

    Simply Wall St·10/13/2026 05:30:45
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    Enlight Renewable Energy (TASE:ENLT) has drawn fresh attention after outlining a plan to triple annual recurring revenue by 2028 and signing a long term power purchase deal with Google for its Solstice project.

    Despite the revenue ambition and the Google agreement, Enlight Renewable Energy’s share price has been choppy, with a 1-day share price return of 2.77% and a 7-day share price return of 4.70% after a 90-day share price decline of 20.97%. Over a 1-year period, the total shareholder return of 91.50% and the 3-year total shareholder return of just over 3x indicate that long term holders have already seen significant gains as sentiment around growth potential and risk has evolved.

    Scan for other renewable plays with similar momentum and long term contract visibility by running the 43 power grid technology and infrastructure stocks alongside Enlight Renewable Energy in your watchlist.

    After a 1 year total return of 91.50% and fresh enthusiasm around the Google deal, the real tension now sits in the gap between Enlight Renewable Energy’s share price and where different valuation frameworks place fair value.

    Preferred P/E of 107x for Enlight Renewable Energy: Is it justified?

    Valuation for Enlight Renewable Energy currently leans heavily on earnings expectations, with the stock trading on a P/E ratio of 107.2x compared with a peer average of 56.8x and an Asian renewable energy industry average of 14x.

    The P/E multiple tracks how much investors are paying for each unit of profit. For a renewables developer that builds and operates assets, a high ratio often reflects confidence that future earnings will be higher than current accounting profit suggests.

    Forecast data points in that direction. Earnings are expected to grow 45.11% per year and revenue is forecast to grow 33.5% per year, both above the wider IL market, which has expected earnings growth of 13.8% and revenue growth of 9.4% per year. That growth profile, combined with Enlight Renewable Energy’s 20 GW generation and 35.8 GWh storage portfolio, explains why the market may be comfortable paying a premium multiple. However, interest coverage concerns and a high level of non cash earnings add complexity for anyone treating the current P/E as a clean indicator of profitability quality.

    Compared with both its immediate peer set on 56.8x and the broader Asian renewable energy industry on 14x, Enlight Renewable Energy trades at a sharply higher earnings multiple. This signals that investors are pricing in much stronger growth or lower perceived risk than the sector on average.

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

    Result: Price-to-Earnings of 107.2x (OVERVALUED).

    Still, the story around Enlight Renewable Energy can change quickly if interest coverage issues deepen, or if its large project pipeline hits delays or contract setbacks.

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

    Next Steps

    Mixed signals on Enlight Renewable Energy and its valuation story. If you want a clearer picture before sentiment shifts again, review the 1 key reward and 5 important warning signs

    Looking for more investment ideas beyond Enlight Renewable Energy?

    If you stop with Enlight Renewable Energy, you risk missing other opportunities that fit your style, your risk tolerance, and your return expectations.

    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.