Galaxy Digital (NasdaqGS:GLXY): Assessing Valuation After 51% Share Price Surge in the Past Month

Galaxy Digital (NasdaqGS:GLXY) has caught the attention of investors as its stock gained nearly 2% in the last session, extending a month-long surge of over 51%. Recent market activity reflects ongoing enthusiasm for the company’s growth trajectory.

See our latest analysis for Galaxy Digital.

Momentum has clearly been building for Galaxy Digital, with its nearly 52% share price return over the past month adding to an impressive rally. While the last session saw only a modest uptick, looking at the bigger picture reveals that long-term holders have enjoyed a 12% total shareholder return over five years as crypto markets shift and investor appetite for digital assets remains lively.

If you're interested in what else is gaining traction, it's a great moment to broaden your radar and discover fast growing stocks with high insider ownership

With shares up nearly 51% this month and trading just shy of analyst price targets, the key question now is whether Galaxy Digital remains undervalued or if investors have already priced in its next phase of growth.

Most Popular Narrative: 1% Undervalued

Galaxy Digital’s most widely followed valuation narrative puts its fair value at $36.78, which is almost identical to its last close of $36.52. This sets the stage for a closer look at the pillars underpinning this razor-thin undervaluation.

“Expansion in trading capabilities, real-world asset tokenization, and infrastructure development is creating stable, high-margin revenue streams and improving long-term earnings visibility.”

Read the complete narrative.

Want to know why this price target is so tightly aligned with today’s price? The key driver behind this narrative is a bullish forecast for topline growth, with recurring earnings and long-term margin assumptions that might surprise you. Which bold assumptions push the valuation above peers? Click through to discover the numbers fueling this projection.

Result: Fair Value of $36.78 (UNDERVALUED)

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

However, some caution is warranted, as Galaxy’s reliance on a single data center client and volatile crypto trading volumes could present challenges for continued growth and profitability.

Find out about the key risks to this Galaxy Digital narrative.

Build Your Own Galaxy Digital Narrative

If you want to dig into the details or put the story together your own way, you can craft a custom narrative in just a few minutes: Do it your way

A great starting point for your Galaxy Digital research is our analysis highlighting 2 key rewards and 3 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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