Solaris Energy Infrastructure (SEI) has just paired a nearly US$2b financing package with a sizable contract expansion, adding 130 MW and lifting its total contracted project investment by more than 60%.

SEI’s share price has climbed 50.83% over the past 90 days and 47.77% year to date, while its 1 year total shareholder return of 178.07% points to strong momentum around the stock’s story.

If this kind of contract-backed growth catches your eye, it could be worth scanning for other power grid and infrastructure opportunities through our 35 power grid technology and infrastructure stocks

With SEI trading at US$74.27 and sitting roughly 21% below an average analyst price target and at what is described as a high forward P/E, you have to ask: is there real value left here, or is the market already pricing in future growth?

Most Popular Narrative: 17.2% Undervalued

With Solaris Energy Infrastructure’s fair value in the most followed narrative set at $89.73 against a last close of $74.27, the story centers on whether current earnings and contracts can support that gap.

The accelerating demand for grid resiliency, electrification of industries, and AI-driven data center power needs is creating strong, ongoing demand for Solaris's modular, scalable power generation solutions, positioning the company for significant revenue growth as delivery of new capacity ramps through 2026 and beyond.

Curious how that growth story translates into a higher fair value, a richer margin profile, and a different future P/E multiple than today? The full narrative lays out the assumptions step by step.

Result: Fair Value of $89.73 (UNDERVALUED)

However, this depends on growth drivers that may not repeat, and any delays or cancellations in data center or natural gas projects could quickly weaken the thesis.

Another View: Rich Earnings Multiple Raises the Bar

That 17.2% “undervalued” fair value sits beside a very different message from the earnings multiple. SEI trades on a P/E of 97.4x, compared with a fair ratio of 38.6x, a US Energy Services industry average of 27.2x, and a peer average of 44.6x. For investors, the question is whether current expectations are already stretched.

Next Steps

With sentiment split between rich expectations and potential upside, you may want to act quickly to review the full picture for yourself, including the 4 key rewards and 3 important warning signs

Looking for more investment ideas?

If you stop with just one stock, you risk missing other opportunities that might fit your style even better, so put a few quality ideas on your radar.

• Target potential mispricings by scanning 49 high quality undervalued stocks that combine sturdy fundamentals with room for the story to improve.
• Strengthen your income focus by reviewing 10 dividend fortresses built around higher yields that still aim to keep payouts supported.
• Lower the overall bumpiness of your portfolio by checking 66 resilient stocks with low risk scores that score well on resilience and balance sheet quality.

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.