4 models fit Shoals Technologies Group Inc. Class A Common Stock and they disagree: 0 of 4 land within 15% of the average.
Two or more of our models back this value.
Near fair value(i)Bronze53
Valued as a cyclical company: P/E comparison, EV/EBITDA comparison, Discounted cash flow, and Graham number.
ACCE opinionShoals Technologies Group Inc. Class A Common Stock (SHLS)
Fair value (4 models)
$7.11
ACCE price target
$8.50
Rating
Fairly valued
Horizon
12 months
Fair value published on 21 Oct 2026, 11:06 CEST; previously $7.46 since 12 Oct 2026, 00:00 CEST.
ACCE price target published on 28 Sept 2026, 00:00 CEST.
Rating published on 21 Oct 2026, 11:06 CEST.
Price used: $7.58 at the close on 23 Oct 2026, 22:00 CEST.
Models: Discounted cash flow, P/E comparison, EV/EBITDA comparison, and Graham number.
Fair value: the average of the applicable valuation models (discounted cash flow, multiples, residual income, dividend discount, shareholder yield), each run on the latest financial statements and the market price shown. Opinion columns (fair value, target, rating) are shown apart from the data. Full methodology: acceinvestments.com/data/how-we-value-stocks
Conflicts of interest: The author holds no personal position in this security. General statement
Produced by ACCE Investments (acceinvestments.com)
Data
Price vs fair value
6.6% above
-6.2% to fair value
ACCE score
50
out of 100
Analysts
63% buy
19 covering
P/E
40.7x
forward 12.9x
1-year return
-26.6%
Dividend yield
0.00%
Shoals Technologies Group Inc. Class A Common Stock in four questions
Plain answers, details below
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Overview
ACCE thesis
Shoals Technologies makes electrical balance of system products, such as wiring harnesses and connectors, for utility-scale solar projects. Its pre-assembled products cut installation time and labour on site. The driver is new solar construction and energy storage. Revenue grew 47.4% with a 13.8% operating margin, and the stock trades at 12.9x forward earnings against 45.5x trailing.
⚠ Investor warnings · 4 flagsAI-assisted·How I use AI
high
Earnings decline amid revenue growth
Revenue up 47.4% YoY but earnings down 12.5%. Margin expansion (gross +32.1%, operating +13.8%) not translating to bottom-line growth signals operational or cost pressures.
high
Negative free cash flow
FCF negative $16.0M despite $1.5B market cap and positive net income. Working capital or capex intensity outpacing profitability.
moderate
Score deterioration and valuation gap
ACCE score fell 7 points in 90 days (67 to 60).
moderate
Sequential revenue contraction
QoQ revenue down 5.2% despite strong YoY growth. Suggests deceleration or seasonal headwind in recent quarter.
AI research notes
AI-assisted·How I use AIWritten Oct 11, 2026 · figures from 2026-06-30 · prices to Oct 23, 2026
Why it could do well
Revenue grew 47.4% year over year, well above the 22.1% five-year average, showing accelerating demand.
Analyst consensus targets $11.22, implying 28.4% upside from the current $8.74 share price.
Latest earnings beat expectations by 11.1%, and 63% of analysts rate the stock Buy or Strong Buy.
Why it could disappoint
The stock trades at 46.0x trailing P/E despite generating only 5.4% net margins and 5.3% ROE.
Free cash flow is negative at minus $16M, a warning sign that working capital is consuming cash as the company scales.
Each chip shows the exact figure and where it comes from. A claim without a source is not published.
Next results
Nov 4, 2026
We update the fair value about 2 days after the results, once the new figures are filed.Add to calendarGoogle
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Valuation
INVESTOR
Where SHLS's valuation models land
Price
$7.58
Model fair value
$7.11
Model range
$4.01 to $11.21
Fair value $7.11
Price $7.58
The price sits inside the model range.
Model
Fair value
Upside
Discounted cash flow
EV/EBITDA comparison
Graham number
P/E comparison
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Quality
INVESTOR
Quality and conviction INVESTOR FEATURE
The full quality picture: a reason under every score, how the scores moved, and the conviction breakdown.
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+Conviction breakdown and growth / value / quality / momentum scores