Arqit Quantum (ARQQ): Evaluating Valuation Following Preliminary Results and Strategic Contract Updates

Arqit Quantum (ARQQ) attracted investor attention after sharing preliminary financial results for the fiscal year ending September 2025. The company reported revenue gains related to new contracts and the start of a multi-year enterprise license agreement.

See our latest analysis for Arqit Quantum.

After a quiet stretch, Arqit Quantum’s shares have come roaring back, notching a striking 1-day share price return of 20% following its financial update. Recent momentum caps a remarkable run, with the stock up 73% in the past month and its total shareholder return over the last year surging more than 1,300%. However, this rebound comes after a challenging few years and alongside ongoing class action settlement discussions. This highlights both renewed optimism and continuing risks for long-term investors.

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With the stock’s dramatic run up and fresh growth signals from management, investors are left to weigh if Arqit Quantum is still undervalued or whether the current share price now fully reflects its future prospects. Could this be a new buying opportunity, or has the market already priced in the potential ahead?

Price-to-Book Ratio of 55.8x: Is it justified?

Arqit Quantum currently trades at a price-to-book (P/B) ratio of 55.8x, which stands out compared to both its industry and peer group benchmarks. With the last close at $58.27, the stock commands a significant premium to book value.

The price-to-book ratio measures how much investors are willing to pay for each dollar of a company's net assets. For technology and software firms, a high P/B ratio can sometimes signal strong growth expectations or valuable intangible assets. It can also indicate overvaluation if the fundamentals do not support it.

Compared to the US Software industry average P/B of 3.8x, Arqit Quantum appears extremely expensive. Its P/B also sits below peers' average of 95.1x. This means it is cheaper than direct competitors but still richly priced versus the broader market. This premium likely reflects anticipated revenue growth, but it is difficult to justify without clear profitability and a larger revenue base.

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

Result: Price-to-Book Ratio of 55.8x (OVERVALUED)

However, ongoing class action settlements and substantial net losses remain significant risks. These factors could quickly reshape investor sentiment around Arqit Quantum’s rally.

Find out about the key risks to this Arqit Quantum narrative.

Build Your Own Arqit Quantum Narrative

Want to dig in for yourself? Anyone can review the numbers, draw their own conclusions, and build a unique narrative in just a few minutes. Why not give it a try? Do it your way

A great starting point for your Arqit Quantum research is our analysis highlighting 2 key rewards and 5 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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