Cipher Mining (CIFR) Valuation After Fed’s Third Rate Cut and Renewed Crypto-Sector Optimism

The Federal Reserve's third consecutive rate cut, trimming the funds rate to a 3.5% to 3.75% range, immediately put Cipher Mining (CIFR) on traders' radar as crypto linked names caught a bid.

See our latest analysis for Cipher Mining.

Even after today’s pullback, with the share price at $17.05, Cipher’s roughly 57% 3 month share price return and powerful 1 year total shareholder return of 178% suggest momentum is cooling, not broken, after a huge run.

If this kind of volatility has your attention, it could be worth scanning other high growth tech and AI names using our high growth tech and AI stocks for fresh ideas beyond crypto mining.

With analysts still seeing nearly 60% upside to their price targets and crypto exposed names back in favor, is Cipher Mining trading at a discount to its next leg of growth, or has the market already priced it in?

Most Popular Narrative Narrative: 37.4% Undervalued

With Cipher Mining closing at $17.05 versus a narrative fair value of $27.25, the gap implies investors are still discounting the new AI powered business mix.

Industry wide demand for large scale, flexible, and energy rich data center sites driven by accelerating institutional and mainstream adoption of digital assets and AI aligns with Cipher's strategy to develop infrastructure that can quickly pivot between Bitcoin mining and high performance computing (HPC), creating upside potential for both revenue diversification and earnings stability.

Read the complete narrative.

Want to see why this story leans on breakneck revenue expansion, a margin makeover, and a future earnings multiple usually reserved for elite software platforms? Dive into the full narrative to uncover the specific growth path, profitability shift, and valuation math that together support this striking upside case.

Result: Fair Value of $27.25 (UNDERVALUED)

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

However, sustained Bitcoin price weakness or delays converting AI and HPC capacity into signed, revenue generating contracts could quickly undermine this upbeat growth story.

Find out about the key risks to this Cipher Mining narrative.

Another Take on Valuation

That upbeat narrative fair value clashes with what the current sales based valuation is signaling. At 32.6 times sales versus a fair ratio of 8.4 times, the US Software sector at 4.9 times, and peers at 19.8 times, the stock screens as aggressively priced on today’s fundamentals. This raises the question of how much future execution is already baked in.

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

Build Your Own Cipher Mining Narrative

If you see the numbers differently or want to stress test your own thesis, you can build a personalized narrative in just minutes with Do it your way.

A great starting point for your Cipher Mining research is our analysis highlighting 1 key reward and 2 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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