Stem Inc (STEM) fair value: what the stock is really worth
As of Sep 23, 2026: fair value of Stem Inc $7.79, price $3.82, upside +104.0%, quality 57 out of 100. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
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Price vs Fair Value
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Sep 23, 2026.
How to read this chart
60‑month range $3.82 – $740.00 · fair‑value band $7.65 – $7.79 · the $3.82 price screens below the $7.79 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Sep 23, 2026.
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Stem, Inc. engages in the development, deployment, and operation of clean energy assets in the United States and internationally. The company offers OEM energy storage systems, and edge hardware devices and solutions.
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Stem, Inc. engages in the development, deployment, and operation of clean energy assets in the United States and internationally. The company offers OEM energy storage systems, and edge hardware devices and solutions. It also provides PowerTrack, an integrated suite of software and solutions for solar, storage, and hybrid assets, including software, energy management system, supervisory control and data acquisition, power plant controller, logger, and optimizer. In addition, the company offers energy optimization software, asset management software, and advisory services; managed services, including the design, procurement, commissioning, operation, and optimization of energy storage and hybrid systems; and professional services to support solar and storage projects, as well as the sale of project assets. It serves developers, asset owners, engineering, procurement and construction firms, distributors, commercial and industrial customers, utilities, and independent power producers. Stem, Inc. was incorporated in 2009 and is headquartered in Houston, Texas.
Stock analysis
Stem Inc (STEM) currently trades at $3.82, while our model-based Fair Value estimate is $7.79, implying the stock looks roughly 51.0% undervalued today.
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Valuation
Bull case: the Growth Earnings group reads highest at a median of $19.11 per share, and 8 of the 12 models we run sit above the $3.82 price.
Bear case: the Multiples group reads lowest at $0.9469, and 4 of the 12 models stay below the price. Evidence for this calculation is low.
Scenario range: $7.65 (bear) to $7.79 (bull), the price of $3.82 sits below it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 57/100 (solid quality), in the Utilities sector.
Weak Growth: Revenue growth is inconsistent: the periods point in different directions, so there is no trend to rely on.
Stem Inc reported revenue of $156M in FY2025 versus $127M in FY2021, a compound +5.2%/yr. Reported net income was $138M in FY2025.
Key figures
Market cap $72.2M · P/S ratio 0.47 · EPS (TTM) $−8.35 · Net margin 88.2% · Return on equity −5,921% · Return on assets (EBIT) −47.9% · Operating margin −37.5% · Revenue (TTM) $153M.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 50 out of 100 (low confidence).
What moves the price
The share trades about 87% below its 52-week high and at its 52-week low, currently below its 200-day average.
For context, the median of 10 Utilities peers we cover trades at −34% fair-value upside, at 104%, STEM screens cheaper than that median.
Fair Value models
Bear $7.65Fair Value $7.79Bull $7.79
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above is their evidence-weighted blend, not the output of a single model.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target.Evidence ⓘEvidence = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.40/100
Revenue growth is inconsistent: the periods point in different directions, so there is no trend to rely on.
Revenue growth 1 year
+8.1%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
−24.5%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+33.9%
Start year 2020 (pandemic)
Revenue growth 7 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+55.7%
’18
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Profit margin (trend) ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.
−136.0% (2020) → −35.6% (2025)
What shareholders gained per year ⓘWe only publish this rate when it is defensible. Reason: no profitable base year
not computed
Growth Forecast
A lot of optimism in the price
The price assumes about as much growth as the company has delivered so far and more than analysts expect.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
+35.6%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
+10.2%
Yearly sales growth analysts expect, extended to five years.
After inflation (USA: IMF forecast 2.4% a year to 2030, 3.1% from 2016 to 2025) that is about +32.5% a year for the price and +7.6% for the forecasts.
Price, fair value, quality and upside side by side.
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Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Utilities - Renewable · 208 stocks
Beats the industry median on 4/8 measures
A mixed picture versus its industry peers.
Valuation
Quality Score57 · Top 25%
Fair Value upside+104% · Top 25%
Profitability
Return on equity (TTM)Negative equity ⓘThe company's equity is below zero, for example after large share buybacks. A ratio to negative equity has no meaning, so we show no number here and do not rank it against the peer group.
Return on assets−6% · Bottom 25%
Net margin (TTM)94% · Top 25%
Operating margin (TTM)−37% · Bottom 25%
Growth and dividend
Revenue growth−11% · Below median
Balance sheet
Debt / equityNegative equity ⓘThe company's equity is below zero, for example after large share buybacks. A ratio to negative equity has no meaning, so we show no number here and do not rank it against the peer group.
Valuation Multiplesvs Utilities - Renewable median · lower = cheaper
P/BNegative equity ⓘThe company's equity is below zero, for example after large share buybacks. A ratio to negative equity has no meaning, so we show no number here and do not rank it against the peer group.
P/S (TTM)0.47× · Cheapest 25%
P/FCF10.5× · Priciest 25%
Strength profile in five axes (Snowflake)
This stockSector peers
VALUE (fair-value potential)100· sector 15
FUTURE (revenue growth)0· sector 0
PAST (return on equity)0· sector 14
HEALTH (low debt)0· sector 68
DIVIDEND (yield)0· sector 47
PAST 0: with negative equity (buybacks among others) return on equity is not meaningfully computable.
For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.
Cite: Fair Value Calculator (2026). "Stem Inc Fair Value". https://www.fairvalue-calculator.com/stock/STEM
Frequently asked questions
Is Stem Inc (STEM) overvalued or undervalued?
As of Sep 23, 2026, our model estimates a fair value of $7.79 versus a price of $3.82, about +104% upside (undervalued).
What is the fair value of STEM?
Our model-based fair value for Stem Inc is $7.79 (as of Sep 23, 2026), built from audited fundamentals. The current price: $3.82.
What is the quality score of STEM?
Stem Inc has a Quality Score of 57/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for Stem Inc (STEM)?
Our model-based price target is the fair value of $7.79 (as of Sep 23, 2026) from 14 valuation models. Cautious scenario $7.65, optimistic scenario $7.79. It is a calculation from audited fundamentals, not an analyst target.
What is the Stem Inc stock forecast for 2026?
Our models put fair value at $7.79, about +104% upside versus a price of $3.82 (undervalued). Cautious scenario $7.65, optimistic scenario $7.79. The calculation is refreshed regularly with new filings.
What is the revenue of Stem Inc (STEM)?
Stem Inc reported trailing-twelve-month revenue of about $153M (latest available figure, as of Sep 23, 2026).
What growth is priced into Stem Inc (STEM)?
For today's price to be fair in a discounted-cash-flow model, Stem Inc would have to grow free cash flow by +35.6 % per year for five years (discount rate 14.1 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +33.9 % per year. As of Sep 23, 2026.
What discount rate (WACC) does the fair value of STEM use?
Our models discount Stem Inc at 14.1 %: a base by market capitalisation (micro), damped by beta 1.44, country premium for USA. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For Stem Inc that is +35.6 % per year a year over ten years, using the same discount rate (14.1 %) and the same formula as our fair value.
How much growth has Stem Inc (STEM) delivered so far?
Over the past 5 years revenue at Stem Inc grew +33.9 % a year. The price currently implies +35.6 % per year free-cash-flow growth a year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of Stem Inc (STEM) growing?
The median revenue growth in the sector is +4.7 % a year. That is the yardstick for the growth priced into Stem Inc (+35.6 % per year a year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Stem Inc (STEM)?
The free-cash-flow yield on the price is 21.16 %: that much free cash flow Stem Inc produces per unit of market value. When it exceeds the discount rate of our models (14.1 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Stem Inc (STEM)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Stem Inc it is $7.79 per share (as of Sep 23, 2026), against a price of $3.82. It is the blended result of 14 valuation models (cash flow, earnings, asset, dividend).
Is Stem Inc stock overvalued or undervalued in 2026?
As of Sep 23, 2026, STEM trades below its calculated fair value: price $3.82, fair value $7.79, a gap of about +104% (undervalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of STEM?
No. The price is what the market pays today ($3.82); the fair value is what the company's own numbers justify ($7.79). For Stem Inc the two are $3.97 per share apart. That gap is exactly why we show both numbers side by side.
How much is Stem Inc worth?
The market values Stem Inc at about $72.2M (market capitalisation, as of Sep 23, 2026). Per share that is $3.82; our models calculate a fair value of $7.79 per share.
What do the bullish and bearish scenarios say about STEM?
Our models span a range for Stem Inc: cautious scenario $7.65, base $7.79, optimistic $7.79 per share (as of Sep 23, 2026, price $3.82). The range comes from different growth and margin assumptions, not from analyst opinions.
How solid is the balance sheet of Stem Inc (STEM)?
Balance-sheet figures for Stem Inc (as of Sep 23, 2026): negative equity, so no return on equity and no debt-to-equity ratio. They feed the Quality Score of 57/100, which measures business quality independently of the share price.
How far is STEM from its 52-week high?
Stem Inc trades at $3.82, about 87% below its 52-week high of $29.79 and at the low of $3.82 (as of Sep 23, 2026). Distance from the high says nothing about value: that is what the fair value of $7.79 is for.
Which stocks are comparable to Stem Inc?
From the same area (Utilities) we also value China Yangtze Power Co, Ørsted A/S, Huaneng Lancang River Hydropower Inc, Adani Green Energy Limited, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Stem Inc stock attractive at the current price?
The data as of Sep 23, 2026: price $3.82, calculated fair value $7.79 (+104%), Quality Score 57/100, from 14 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of STEM calculated?
We run Stem Inc through 14 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of $7.79, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 13.0 % above its aggregate fair value. Stem Inc currently trades 104 % below its own fair value, and the market average says nothing about that. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Stem Inc (STEM)?
The closing price on Sep 23, 2026 was $3.82. Our model-based fair value is $7.79, about +104% upside (undervalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Stem Inc right now?
The price is below even our cautious bear case ($7.65). The market is more pessimistic than our downside scenario. The large gap to fair value rests on thin data (low evidence): fewer applicable models and a shorter history. Read it with extra caution. Solid quality (57/100) at a price below fair value, the discount is the argument here, not the business quality. The models converge in a tight band ($7.65 to $7.79), unusually little disagreement for a valuation.
Key figures of Stem Inc
How large is the market capitalisation of Stem Inc (STEM)?
The market capitalisation of Stem Inc is $72.2M. The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Stem Inc (STEM)?
The price-to-sales ratio of Stem Inc is 0.47 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Stem Inc (STEM)?
Earnings per share at Stem Inc are $−8.35. Earnings per share over the last twelve months: total profit spread across every single share.
What is the net margin of Stem Inc (STEM)?
The net margin of Stem Inc is 88.2% (fiscal year 2025). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Stem Inc (STEM)?
The return on equity (ROE) of Stem Inc is −5,921% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Stem Inc (STEM)?
On an EBIT basis the return on assets of Stem Inc is −47.9% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Stem Inc (STEM)?
The operating margin of Stem Inc is −37.5% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Stem Inc (STEM)?
Revenue at Stem Inc is growing −10.8% versus a year earlier (3y avg −24.5%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How much net debt does Stem Inc (STEM) carry?
The net debt of Stem Inc is $320M (fiscal year 2025, ≈ 46.6 yrs of FCF). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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Thin data
Sep 23, 2026