A Fresh Look at Rigetti Computing (RGTI) Valuation After $5.7 Million in Novera Quantum System Orders

Rigetti Computing’s (RGTI) announcement of $5.7 million in new purchase orders for its 9-qubit Novera quantum computing systems grabbed attention this week. The deal includes both international and U.S. research buyers and reflects real commercial momentum.

See our latest analysis for Rigetti Computing.

After a stretch of eye-catching news and contract wins, including a $5.8 million Air Force deal and high-profile hardware sales, Rigetti Computing's stock has staged one of the market’s most remarkable ascents. Its 1-year total shareholder return is an extraordinary 5,280%, amplified by a surging 130% share price return in the past month alone. This signals intense momentum but also rising risk as valuations stretch. Momentum like this suggests investor enthusiasm for quantum computing is building, especially as tangible sales and partnerships begin to materialize, even if Rigetti's long-term profitability remains uncertain.

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With shares soaring at breakneck speed, the debate is heating up: does Rigetti’s rally reflect only the promise of what is to come, or could this rapid run-up signal a rare window to buy before future growth is priced in?

Price-to-Book Ratio of 25.7x: Is it justified?

Rigetti Computing’s shares now trade at a price-to-book ratio of 25.7x, which is significantly higher than both its peers and the broader US semiconductor industry. This sharp premium puts RGTI in a position where investors are paying a considerable amount for each dollar of book value relative to rivals.

The price-to-book ratio measures a company’s market value against its net asset value, making it a commonly used valuation yardstick for high-growth, asset-light technology firms. For a company like Rigetti Computing, which is still early stage and yet to achieve profitability, such a multiple signals expectations of future breakthroughs and revenue expansion.

However, at 25.7x, RGTI trades not just above the semiconductor peer average of 4.9x but also far above the overall industry average of 3.3x. This sizable gap suggests the market is pricing in rapid growth and quantum market leadership, while ignoring traditional valuation anchors or the company’s continuing losses.

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

Result: Price-to-Book of 25.7x (OVERVALUED)

However, Rigetti’s steep losses and a share price significantly higher than analyst targets remain key risks. These factors could trigger sharp corrections if growth stalls.

Find out about the key risks to this Rigetti Computing narrative.

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A great starting point for your Rigetti Computing research is our analysis highlighting 1 key reward and 4 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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