A Look at CleanSpark’s Valuation Following Strong Earnings and Buyback Announcement

CleanSpark, Inc. has caught plenty of investor attention after reporting full-year financial results that revealed revenue more than doubled and net income moved firmly into positive territory. The company also completed a sizable share repurchase program.

See our latest analysis for CleanSpark.

The recent wave of positive news, from CleanSpark's sharp jump in revenue and profitability to the sizable buyback, has put the stock on many investors’ radars. After a period of volatile trading, momentum has picked up, with the 90-day share price return at 23.38%, even if the 30-day return remains deeply negative. Over a longer period, CleanSpark's story is still compelling, with a standout 473.8% total shareholder return over three years, despite a one-year dip. The combination of fundamental progress and shifting sentiment means CleanSpark is firmly back in focus for growth-oriented investors.

If CleanSpark’s turnaround has you wondering where else opportunity might be building, this is the perfect moment to widen your perspective and explore fast growing stocks with high insider ownership

But after such impressive numbers and a strong run in the share price, is CleanSpark now an undervalued opportunity waiting for savvy investors? Or has the market already factored in much of its future growth?

Most Popular Narrative: 50.7% Undervalued

Compared to CleanSpark’s last close price of $11.82, the most widely followed narrative sees fair value closer to $24 per share, painting a picture of significant upside. The current market is not mirroring these bullish projections, raising the stakes for anyone weighing up the risks and rewards right now.

CleanSpark's fully self-operated, scalable, and power-efficient infrastructure enables it to mine Bitcoin at a significantly lower cost than the market price. Further capacity expansion, including an additional 10 exahash and over 200 megawatts of contracted power ready for rapid deployment, is poised to drive sustained increases in Bitcoin production, improving revenue and supporting higher net margins.

Read the complete narrative.

What’s turbocharging this valuation? It is not just bold expansion plans. Projections hinge on aggressive revenue gains, streamlined operations, and future profit margins that separate leaders from the pack. What exactly are the numbers behind this narrative’s explosive target price?

Result: Fair Value of $23.98 (UNDERVALUED)

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

However, CleanSpark’s fortunes still hinge on sustained high Bitcoin prices and ongoing demand. This makes future revenue growth vulnerable to sharp market shifts.

Find out about the key risks to this CleanSpark narrative.

Another View: SWS DCF Model Challenges the Upside

While analyst consensus pegs CleanSpark's fair value close to $24 per share, our SWS DCF model tells a different story. By focusing on projected cash flows and risk, it estimates fair value at just $5.15, well below today's price. Could market optimism be overstating the real value?

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 CleanSpark 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 924 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 CleanSpark Narrative

If you see things differently or want to dig into the numbers for yourself, you can shape your own CleanSpark story in just a few minutes. Do it your way

A great starting point for your CleanSpark research is our analysis highlighting 4 key rewards and 3 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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