Core Scientific (CORZ): Reassessing Valuation After Recent Share Price Weakness and Strong Growth Prospects

Core Scientific (CORZ) has been under pressure lately, with the stock sliding about 8% in the past month and nearly 19% over the past 3 months, raising valuation questions for crypto-focused investors.

See our latest analysis for Core Scientific.

Zooming out, that recent volatility sits within a choppy year, with the latest 1 year total shareholder return of around minus 6 percent and year to date share price return also modestly negative. This suggests momentum has cooled even as revenue growth remains strong.

If Core Scientific’s swings have you reassessing your options, this could be a good moment to explore other high growth opportunities like fast growing stocks with high insider ownership.

With shares lagging despite rapid top line and earnings growth, and analysts seeing sizable upside from today’s price, investors face a key question: Is Core Scientific still undervalued or already reflecting its future potential?

Most Popular Narrative Narrative: 49.4% Undervalued

With Core Scientific last closing at $13.57 against a narrative fair value of $26.82, the most followed view implies the market is deeply discounting its long term potential.

Core Scientific secured a major HPC contract with CoreWeave, with a total revenue potential of $8.7 billion over a 12 year term, significantly boosting future revenue compared to their current levels. The company is expanding HPC infrastructure capacity by reallocating resources from Bitcoin mining, adding new sites, and extending existing ones, and expects this to drive future revenue growth as data center needs rise.

Read the complete narrative.

Curious how this contract heavy, power rich growth story turns a current loss maker into a cash engine with premium margins and a tech style earnings multiple? The full narrative unpacks the bold revenue ramp, profit swing, and valuation math that bridges today’s price to that higher fair value.

Result: Fair Value of $26.82 (UNDERVALUED)

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

However, execution missteps in the pivot to AI and HPC, or delays monetizing new capacity, could quickly undermine today’s upbeat growth and valuation assumptions.

Find out about the key risks to this Core Scientific narrative.

Another Take on Valuation

Looking past the bullish narrative, Core Scientific appears expensive on a simple price-to-sales basis. At around 12.6 times sales, it trades at more than triple peers on 3.6 times, and well above a fair ratio of 4.1 times. That kind of gap can mean notable downside if growth stumbles.

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

Build Your Own Core Scientific Narrative

If you see the story differently or want to dig into the numbers yourself, you can build a personalized Core Scientific view in under three minutes. Start with Do it your way.

A great starting point for your Core Scientific 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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