Bitfarms Ltd.

TSX:BITF Stock Report

Market Cap: CA$1.4b

Bitfarms Valuation

Is BITF undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of BITF when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: BITF (CA$2.96) is trading below our estimate of fair value (CA$9.67)

Significantly Below Fair Value: BITF is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for BITF?

Key metric: As BITF is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for BITF. This is calculated by dividing BITF's market cap by their current revenue.
What is BITF's PS Ratio?
PS Ratio5.5x
SalesUS$182.96m
Market CapUS$1.00b

Price to Sales Ratio vs Peers

How does BITF's PS Ratio compare to its peers?

The above table shows the PS ratio for BITF vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average5x
ENGH Enghouse Systems
3.2x6.0%CA$1.6b
DND Dye & Durham
2.7x8.3%CA$1.2b
DCBO Docebo
7.1x14.1%CA$2.1b
CMG Computer Modelling Group
6.8x13.3%CA$858.0m
BITF Bitfarms
5.5x77.9%CA$1.4b

Price-To-Sales vs Peers: BITF is expensive based on its Price-To-Sales Ratio (5.5x) compared to the peer average (5x).

Price to Sales Ratio vs Industry

How does BITF's PS Ratio compare vs other companies in the CA Software Industry?

27 CompaniesPrice / SalesEstimated GrowthMarket Cap
QUIS Quisitive Technology Solutions
0.6x6.2%US$71.45m
BTCW Bitcoin Well
0.6xn/aUS$31.20m
NOW NowVertical Group
0.5x5.3%US$21.85m
PLUR Plurilock Security
0.4xn/aUS$19.50m
BITF 5.5xIndustry Avg. 3.6xNo. of Companies27PS02.85.68.411.214+
27 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: BITF is expensive based on its Price-To-Sales Ratio (5.5x) compared to the Canadian Software industry average (3.6x).

Price to Sales Ratio vs Fair Ratio

What is BITF's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

BITF PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio5.5x
Fair PS Ratio13.5x

Price-To-Sales vs Fair Ratio: BITF is good value based on its Price-To-Sales Ratio (5.5x) compared to the estimated Fair Price-To-Sales Ratio (13.5x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

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