Generac Holdings (GNRC) shares were priced at US$189.23, and the stock has returned about 130.1% over the past 3 years. The article questions whether that price is supported by projected cash flows, especially after a long-term backup power agreement with Amazon with deliveries planned for 2027 and 2028. Using a two-stage free cash flow to equity DCF model, with latest free cash flow of about $386.3m and projections growing toward 2030, the article says intrinsic value is substantially above the current price, while the headline cites a 36% undervaluation. The stock trades at a 43.3x P/E.
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