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If you are trying to figure out whether CoreWeave is attractively priced or already baking in a lot of optimism, you will want to look beyond the headline share price.
CoreWeave shares most recently closed at US$101.23, with reported returns of 12.6% over the last 7 days, 22.0% over 30 days, and 27.6% year to date, which can change how investors think about both upside and risk.
Recent coverage around CoreWeave has focused on its position within the software and cloud infrastructure space, along with heightened attention on companies linked to high performance computing and AI workloads. This context helps explain why the stock has been in the spotlight and why short term price moves have attracted interest.
On Simply Wall St’s 6 point valuation framework, CoreWeave scores a 2 out of 6, which suggests some aspects look cheap while others do not. Next, we will walk through the key valuation approaches that lead to this score, and then finish with a way of thinking about valuation that can give you a clearer overall picture.
CoreWeave scores just 2/6 on our valuation checks. See what other red flags we found in the full valuation breakdown.
A Discounted Cash Flow, or DCF, model estimates what a company could be worth today by projecting its future cash flows and then discounting those back to a single present value figure.
For CoreWeave, Simply Wall St uses a 2 Stage Free Cash Flow to Equity model. The latest twelve month free cash flow is a loss of about US$12.0 million. The projections provided show free cash flow staying negative in the near term, with estimates such as US$18.5 million, US$8.3 million and US$1.7 million of additional losses in 2026, 2027 and 2028, then turning to a positive US$1.2 million by 2030. Beyond the first five analyst years, Simply Wall St extrapolates further cash flows through to 2035.
When all of those projected cash flows are discounted back using this model, Simply Wall St calculates an estimated intrinsic value of about US$32.53 per share. Compared with the recent share price of US$101.23, this DCF output suggests the stock is very expensive relative to these cash flow assumptions and is assessed as 211.2% overvalued.
For companies where profits are limited or volatile, the P/S ratio is often more useful than P/E or P/B because it compares the share price to revenue, which tends to be more stable and less affected by accounting or early stage investment decisions.
What counts as a “normal” or “fair” P/S ratio usually reflects what investors expect for future growth and how much risk they see. Higher expected growth and lower perceived risk often go with a higher multiple, while slower growth or higher uncertainty usually mean a lower multiple looks more reasonable.
CoreWeave currently trades on a P/S of 11.71x. That sits well above the broader IT industry average P/S of 2.42x, but below the peer group average of 25.53x. Simply Wall St also calculates a proprietary “Fair Ratio” of 27.61x, which reflects factors such as CoreWeave’s growth outlook, profit margin profile, industry, market cap and risk characteristics.
This Fair Ratio aims to be more tailored than a simple industry or peer comparison, because it adjusts for the specific mix of growth, risks and profitability, rather than assuming one size fits all.
Compared with the Fair Ratio of 27.61x, CoreWeave’s current P/S of 11.71x sits materially lower, which points to the shares looking undervalued on this metric.
Earlier we mentioned that there is an even better way to understand valuation, so let us introduce you to Narratives, a simple way to connect your view of CoreWeave’s story with the numbers you believe in, like future revenue, earnings, margins and ultimately a fair value per share.
A Narrative is your own storyline for the company, linked directly to a financial forecast and then to a fair value, so you are not just looking at ratios in isolation. Instead, you are seeing how your expectations translate into a price that feels reasonable to you.
On Simply Wall St, millions of investors build and compare Narratives on the Community page. There, you can see how your fair value stacks up against others and how that compares with the current CoreWeave share price to help you decide whether you think the stock looks attractive, fully priced or expensive.
Narratives also update automatically when new information such as news or earnings is added. You might see one CoreWeave Narrative that assumes a much higher fair value, while another applies more cautious revenue growth or margins and arrives at a far lower fair value, all based on different but clearly laid out assumptions.
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.
