Revisiting Canadian Solar's Valuation Amidst a Sharp Three-Month Share Price Rebound

Canadian Solar has seen a sharp three-month share price rebound, more than doubling in value. Despite the surge, the 1-year total shareholder return remains negative over a three-year view. Analysts estimate fair value at $21.76 per share, below the last close of $25.86, framing the recent rally as stretched. However, our DCF model suggests Canadian Solar is trading 55% below its estimated fair value of $57.94 per share.