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JinkoSolar (NYSE:JKS): Evaluating Valuation After a Recent 8% Share Price Rebound

Simply Wall St · 2d ago

JinkoSolar Holding (NYSE:JKS) has quietly climbed about 8% over the past week while still sitting roughly flat over the past year, a setup that has value focused solar investors taking another look.

See our latest analysis for JinkoSolar Holding.

That recent 7 day share price return of 7.98% at a last close of $26.78 looks more like a rebound than a breakout. This is especially the case when set against a 1 year total shareholder return of just 2.77% and a much weaker 3 year total shareholder return of negative 36.78%, which suggests sentiment is improving but the longer term picture is still repairing.

If you are tracking how solar and wider clean tech sentiment is shifting, this is also a good moment to explore high growth tech and AI stocks as potential next candidates for your watchlist.

With revenue still growing fast but profits under pressure and the shares trading at a steep discount to analyst targets, is JinkoSolar a mispriced value play, or is the market already discounting weaker future growth?

Most Popular Narrative Narrative: 24% Undervalued

With JinkoSolar last closing at $26.78 against a narrative fair value of $35.23, the story hinges on whether future execution matches ambitious forecasts.

In order for you to agree with the analyst's consensus, you'd need to believe that by 2028, revenues will be CN¥124.9 billion, earnings will come to CN¥382.9 million, and it would be trading on a PE ratio of 52.9x, assuming you use a discount rate of 13.6 percent. Given the current share price of $24.01, the analyst price target of $37.22 is 35.5% higher.

Read the complete narrative.

Curious what justifies flipping from sizeable losses to positive margins and a premium future earnings multiple, all under a double digit discount rate? The details might surprise you.

Result: Fair Value of $35.23 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, shifting trade policies and intensifying industry competition could quickly erode margins and undermine the bullish case if pricing and shipments disappoint.

Find out about the key risks to this JinkoSolar Holding narrative.

Build Your Own JinkoSolar Holding Narrative

If you would rather stress test the assumptions and follow your own research path, you can build a personalized view in minutes with Do it your way.

A great starting point for your JinkoSolar Holding 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.