First Solar (FSLR) is back in focus after securities class action filings claimed the company misrepresented its ability to handle U.S. tariff policy and understated related effects on its 2026 performance.

At a recent share price of US$214.28, First Solar has seen its 30 day share price return rise 5.65%, even as its year to date share price return is down 21.89%. The 5 year total shareholder return of 126.90% shows the longer term picture remains very different from the recent period affected by guidance revisions and the class action headlines.

If recent legal headlines have you reassessing clean energy exposure, it can help to compare with other power and grid related opportunities using the 39 power grid technology and infrastructure stocks

Bulls see First Solar’s earnings and long term returns as support for the recent rebound. Bears focus on tariff risks, lawsuits and guidance cuts. Which story do the current valuation numbers lean toward next?

Most Popular Narrative: 14.9% Undervalued

Based on the most followed narrative, First Solar’s fair value of $251.90 sits above the recent $214.28 share price, which frames the current class action headlines against a still constructive long term view.

The steadily growing, visibility-rich contracted backlog (currently at $18.5 billion and 64 GW, with price adjusters for tech milestones and tariffs) provides stability against industry volatility. This allows consistent revenue recognition and helps mitigate net margin compression, even amid cyclical and policy-driven swings in global solar markets.

Want to see what really underpins that fair value gap? The narrative leans heavily on future revenue, margin expansion and the profit multiple analysts think First Solar can support.

Result: Fair Value of $251.90 (UNDERVALUED)

However, the First Solar story could change quickly if U.S. policy support is reduced or if global trade decisions and tariffs shift in ways that squeeze margins.

Next Steps

If the mixed mood around First Solar has you on the fence, review the underlying positives now, and then weigh them against your own risk tolerance with the 4 key rewards

Looking for more investment ideas beyond First Solar?

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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.