Wolfspeed (WOLF): Examining Valuation After Recent Share Price Rebound

Wolfspeed (NYSE:WOLF) may not be showing up on everyone’s radar this week, but its recent price swings are enough to make long-term investors pause and consider what the market is really signaling. After a year of steady declines, the chipmaker’s shares have started to show some flickers of positive momentum, even if there is no single event making headlines right now. In the absence of a blockbuster deal or technology breakthrough, the move raises a straightforward question: is the market finally warming up to Wolfspeed, or is this just temporary noise?

Looking at the bigger picture, Wolfspeed has faced a challenging period. Shares are down nearly 89% over the past year, continuing a string of weak performance that stretches back three years. Even as revenue has grown by 12% and net losses have narrowed somewhat, investors have not shown much sustained enthusiasm. Still, a 10% gain over the past three months suggests sentiment may be shifting, at least among more opportunistic buyers looking for an early rebound story.

The real test, after all this volatility, is whether there is deep value hiding in Wolfspeed’s stock, or if everything the company could deliver is already reflected in the current price. Is it time to look closer?

Most Popular Narrative: 95% Undervalued

According to the narrative shared by TristyTreat, Wolfspeed's current share price is at a dramatic discount compared to what some consider a fair value. The narrative suggests there could be significant undervaluation if upcoming expectations are met.

(Invested, don't don't know how to configure that). The following is offered as a crowd-sourced peer-review observation of Wolfspeed social media, stock trading patterns, and coinciding timeline over the last six months (Fall 2024, Winter 2025), following an activist investor campaign beginning in Spring 2024. Open to other observations and reviews of the same data. Not investment advice, public sources data science observation only. My guesses of future stock trading patterns vary. Ideas?

Think the current price misses a bigger story? This narrative highlights bold expectations in growth and future performance metrics, suggesting a significant disconnect between recent trading patterns and the company’s true potential. Interested in what assumptions drive this high fair value and what the crowd may be seeing before Wall Street? The answers may be found just beneath the surface in this valuation analysis.

Result: Fair Value of $29.00 (UNDERVALUED)

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

However, slowing revenue growth or persistent net losses could quickly challenge bullish views and test whether sentiment can truly shift in Wolfspeed’s favor.

Find out about the key risks to this Wolfspeed narrative.

Another View: What Does the SWS DCF Model Say?

The SWS DCF model approaches Wolfspeed’s value from a different angle, focusing on future cash flows rather than recent trading patterns. This method also suggests the stock is trading at a steep discount. Could both methods be seeing the same potential, or are their assumptions leading them astray?

Look into how the SWS DCF model arrives at its fair value.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Wolfspeed for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Build Your Own Wolfspeed Narrative

If these views don’t match your own perspective, or you want to draw your own conclusions from the numbers, you can easily craft your own analysis in just minutes. do it your way.

A great starting point for your Wolfspeed research is our analysis highlighting 3 key rewards 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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