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Bloom Energy (BE) Joins The S&P 500, Is The Stock Still A Bargain?

Simply Wall St · 2d ago

Bloom Energy (BE) is back in focus after the company secured a spot in the S&P 500, a milestone that arrived alongside record quarterly revenue and a higher full year outlook.

That surge is part of a much bigger move. Bloom Energy shares have delivered a 30 day share price return of 26.39% and a year to date share price return of 180.90%. The 1 year total shareholder return of 404.04% and 3 year total shareholder return of almost 17x point to powerful momentum, which recent S&P 500 inclusion, AI focused power deals and large investment commitments have helped reinforce.

Spot 55 AI infrastructure stocks that, like Bloom Energy, are tied to surging power needs from AI data centers and could be riding similar demand tailwinds.

Bulls point to Bloom Energy’s record quarter, S&P 500 promotion and AI power deals. Bears see a hot stock, legal overhang and index froth. Which side does current valuation appear to favor next?

Most Popular Narrative: 28.2% Undervalued

Bloom Energy’s most followed valuation story pegs fair value at $386.10, well above the last close of $277.22, which puts a spotlight on what is driving that gap.

The Bloom Energy story is still early days. Wall Street cannot seem to comprehend that so many areas for their growth, international, other market segments, even personal or community power (where they started) are largely untapped. The main constraint on their opportunity is plain and simple ignorance.

Read the complete narrative.

Want to see why this narrative supports a higher fair value for Bloom Energy? The story focuses on revenue expansion, changes in margins and the valuation placed on potential future earnings. Curious which specific growth runway and profitability path underpin that $386.10 figure and 28.2% discount? The full narrative lays out the assumptions in plain language.

Result: Fair Value of $386.10 (UNDERVALUED)

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

Still, Bloom Energy’s story can break if AI data center demand cools or if regulatory pushback slows new fuel cell deployments and electrolyzer projects.

Find out about the key risks to this Bloom Energy narrative.

Another View: Bloom Energy Through The P/S Lens

The DCF story paints Bloom Energy as 23.1% undervalued at $277.22, yet the P/S ratio of 26.2x tells a very different tale. That multiple is far above the US Electrical industry on 2.1x, peers on 13.7x, and even the 15.9x fair ratio our model suggests the market could move toward. That kind of gap can signal rich expectations that leave little room if growth or margins disappoint.

For investors weighing these cross signals, the question is simple: Does the cash flow model have it right, or is the revenue multiple flashing a valuation risk that is easy to overlook when momentum is running hot?

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

NYSE:BE P/S Ratio as at Sep 2026
NYSE:BE P/S Ratio as at Sep 2026

Next Steps

Mixed about whether Bloom Energy’s surge reflects too much hope or not enough credit for its potential upside and downside? Move quickly, review the key data, and weigh the 3 key rewards and 4 important warning signs.

Looking for more Bloom Energy style investment ideas?

Do not stop with Bloom Energy. Use Simply Wall Street's screener today to uncover fresh opportunities that match your risk level and return goals before others do.

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.