TeraWulf (WULF) just rolled out a sweeping strategy shift, locking in over $7.7 billion in long term contracts and deepening its AI infrastructure push with fresh financing and a cleaner capital structure.
See our latest analysis for TeraWulf.
Despite a choppy past month, with a 30 day share price return of negative 10.37 percent, TeraWulf’s 90 day share price return of 62.68 percent and three year total shareholder return of 1,681.04 percent suggest momentum is still building as the market prices in its AI data center pivot and Google backed contracts.
If this kind of repositioning has your attention, it might be a good time to see what other high growth tech names are doing across high growth tech and AI stocks.
With the stock still trading at roughly a 49 percent discount to analyst targets and multi year returns already soaring, is TeraWulf a misunderstood compounder in its early innings, or is the market already pricing in that future growth?
Compared to the last close at $14.43, the most widely followed narrative sees fair value materially higher, hinging on aggressive growth and improving profitability.
In order for the above numbers to justify the analysts price target, the company would need to trade at a PE ratio of 42.4x on those 2028 earnings, up from -27.8x today. This future PE is greater than the current PE for the US Software industry at 36.6x.
Read the complete narrative.
Curious what kind of revenue surge, margin reset, and earnings ramp could warrant such an elevated future multiple? Unpack the full blueprint behind that fair value.
Result: Fair Value of $21.44 (UNDERVALUED)
Have a read of the narrative in full and understand what’s behind the forecasts.
However, execution missteps on capital intensive AI and HPC buildouts, or weaker than expected tenant demand, could quickly challenge today’s bullish long term assumptions.
Find out about the key risks to this TeraWulf narrative.
That fair value of $21.44 leans on rapid growth and a big swing into profitability, but today the market is already paying 36 times sales for TeraWulf, versus 4.9 times for US software and a fair ratio of 13.6 times. Is sentiment running ahead of fundamentals?
See what the numbers say about this price — find out in our valuation breakdown.
If you see the story differently or want to dig into the numbers yourself, you can build a custom view in just minutes: Do it your way.
A great starting point for your TeraWulf research is our analysis highlighting 1 key reward and 3 important warning signs that could impact your investment decision.
