SMA Solar Technology falls 18% on Tradegate vs Xetra close

SMA Solar Technology falls 18% on Tradegate vs Xetra close

SMA Solar Technology AG (SMA) experienced a significant drop in its stock price, falling by 18% on Tradegate compared to its Xetra close on July 2, 2025. The stock's performance was notably lower on Tradegate, with the price declining from €22.66 to €18.94.

The company, which develops, produces, and sells PV and battery inverters, transformers, chokes, monitoring systems for PV systems, and charging solutions for electric vehicles, has been facing market volatility. SMA Solar Technology AG operates in three segments: Home Solutions, Commercial & Industrial Solutions, and Large Scale & Project Solutions. Despite its robust product portfolio, the stock's recent performance indicates a potential overvaluation, according to a valuation analysis using the 2-stage free cash flow to equity method [2].

The analysis suggests that SMA's current share price of €22.66 is potentially 34% overvalued, with a fair value estimate of €16.92. The discrepancy between the share price and the fair value estimate could be attributed to various factors, including market sentiment, analyst expectations, and the company's growth prospects.

Investors should consider additional factors when evaluating SMA Solar Technology AG, such as risks, future earnings, and the company's overall business fundamentals. The DCF model, while providing valuable insights, is just one of many tools used in investment valuation. It is essential to assess the company's performance within the context of its industry and competitors.

For further analysis and insights, investors can refer to SMA Solar Technology AG's investor relations page [3]. The company's stock is listed on several indices, including the SDAX Index, CDAX Index, Prime All Share Index, STOXX Europe ex UK Total Market Index, PPVX Photon Photovoltaik Aktien Index, and the Corporate Knights Global 100 Index.

References:
[1] https://uk.finance.yahoo.com/quote/S92.DE/
[2] https://finance.yahoo.com/news/sma-solar-technology-ag-etr-063212223.html
[3] https://www.sma.de/en/investor-relations/share