Assessing Bitfarms (TSX:BITF) Valuation After Recent Pullback And One Year Shareholder Return Rebound

Bitfarms stock performance snapshot

Bitfarms (TSX:BITF) has drawn attention after a recent 4.3% daily gain, even as the share price shows a 28% decline over the past month and an 18.6% decline over the past 3 months.

See our latest analysis for Bitfarms.

That recent 4.3% one day share price gain comes after a weaker stretch, with a 30 day share price return of 28.4% decline and a year to date share price return of 17.9% decline. However, the 1 year total shareholder return of 46.5% hints that sentiment around Bitfarms can shift quickly as investors reassess both growth potential and risk around bitcoin mining exposure.

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So with Bitfarms delivering a 46.5% 1-year total return, a recent sharp pullback, analyst targets well above the current CA$2.93 price, and rapid revenue and net income growth, is there still a buying opportunity here, or is the market already pricing in future growth?

Most Popular Narrative: 65.4% Undervalued

Bitfarms' most followed narrative sets a fair value of CA$8.48 per share, which sits well above the recent CA$2.93 close and leans heavily on a long term transformation story.

Strategic conversion of renewable-powered mining sites (particularly in Quebec and Washington) into high-performance computing (HPC) and AI data centers aligns with the global trend toward green energy in tech infrastructure, potentially granting access to ESG-driven capital and regulatory support, while unlocking new high-margin revenue streams.

Read the complete narrative.

Want to see what this pivot really assumes? The most followed narrative leans on faster revenue expansion, higher margins, and a richer earnings multiple coming together. It is the combination that does the heavy lifting.

Result: Fair Value of CA$8.48 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, this hinges on tricky pieces falling into place, such as securing regulatory approval for Quebec data center conversions and funding large projects without overstretching the balance sheet.

Find out about the key risks to this Bitfarms narrative.

Another view on Bitfarms valuation

The popular narrative treats Bitfarms as meaningfully undervalued at CA$8.48, but the current P/S of 4.7x tells a different story. That is richer than the Canadian software industry at 3.1x, peers at 2.5x, and above a fair ratio of 2.7x. This points to valuation risk rather than a clear bargain.

See what the numbers say about this price — find out in our valuation breakdown.

Build Your Own Bitfarms Narrative

If you are not fully on board with this view or you prefer to test the numbers yourself, you can build a custom thesis in minutes with Do it your way.

A great starting point for your Bitfarms research is our analysis highlighting 1 key reward and 2 important warning signs that could impact your investment decision.

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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.

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