Assessing American Bitcoin (ABTC) Valuation After Post‑IPO Lockup Selloff and Ongoing Trump Family Involvement

American Bitcoin (ABTC) has been whipsawed since its post IPO lockup expired, with the stock sliding more than 60% over the past month as pent up insider supply finally hit the market.

See our latest analysis for American Bitcoin.

Zooming out, the heavy selling after the post IPO lockup expiry has simply accelerated a downtrend that was already in place. A roughly 70% year to date share price return underscores how momentum has clearly shifted from speculative enthusiasm to heightened risk perception at a latest share price of $1.94.

If this kind of sharp volatility has you reassessing your options, it could be worth exploring other high potential names through fast growing stocks with high insider ownership to see where growth and insider conviction better line up.

With a 70% slide this year but analysts still seeing upside to a 4 dollar target, has American Bitcoin now been knocked down to an attractive entry point, or is the market already discounting its future growth?

Price-to-Earnings of 10.8x: Is it justified?

Based on a price to earnings ratio of 10.8 times at a last close of $1.94, American Bitcoin screens as undervalued against peers despite the recent selloff.

The price to earnings ratio compares what investors pay today to each dollar of current earnings. It is a common benchmark for profitability focused, cash generative or maturing growth companies in software and digital infrastructure.

For American Bitcoin, a relatively low price to earnings multiple suggests the market is either skeptical about the durability of its earnings profile or discounting the quality of those earnings, even though revenue is still forecast to grow briskly while reported return on equity sits at a high level.

Stacked up against the wider US software industry at 31.9 times earnings and a peer group average of 76.5 times, American Bitcoin’s 10.8 times multiple is strikingly lower. This implies investors are paying a steep discount for each dollar of earnings compared with comparable names in the space.

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

Result: Price-to-Earnings of 10.8x (UNDERVALUED)

However, lingering concerns over sharply contracting net income and the stock’s extreme volatility could quickly overpower any appeal from its seemingly low earnings multiple.

Find out about the key risks to this American Bitcoin narrative.

Another View: What Our DCF Says

Our DCF model points to a fair value of about $2.97 per share, suggesting ABTC is roughly 35% undervalued at $1.94. While that supports the low earnings multiple, it also raises a question: is the market overly pessimistic, or is the model too optimistic on future cash flows?

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 American Bitcoin 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 909 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 American Bitcoin Narrative

If you see the numbers differently or want to dig into the details yourself, you can build a personalized view in just a few minutes: Do it your way.

A great starting point for your American Bitcoin 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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