Dr. Qiyu ZhangFAWAZ MOHAMMAD SAEED ALSHAHRANI2022-06-042022-01-242022-06-04109858https://drepo.sdl.edu.sa/handle/20.500.14154/65916This study examines the influence of certain independent variables such as oil prices, Gross Domestic Product (GDP), and profitability ratios on determining the prices of renewable energy stocks. This paper uses a panel data random effects regression with a sample of 40 companies operating in the alternative energy sector across different markets. We find that prices of alternative energy companies can be estimated to have an inverse relationship with the profitability measures namely- the return on assets (ROA) and the return on equity (ROE). The findings also show a connection between the prices of clean energy companies and the growth of sales. Our findings demonstrate that the business cycle has a positive statistically significant impact on GDP and the stock prices of renewable energy businesses. The study contributes to our understanding of the connection between the variables that provide a basis for diversifying the portfolio between assets’ classes in a more comprehensive way. Finally, several important weaknesses need to be considered. The lack of data, regarding the sales’ growth for some international renewable energy at some point in time within the sample period, which adds further caution regarding the generalisability of these findings.46enThesis