Is It Too Late to Consider CoreWeave After Its 80.9% 2025 Rally?

• Many investors are wondering if CoreWeave is still a smart buy after its big run or if the easy money has already been made, and that is exactly what we are going to unpack here.
• The stock has cooled off recently, dropping about 16.1% over the last week and 6.5% over the past month, but it is still up an impressive 80.9% year to date, which suggests sentiment has shifted in a significant way.
• A lot of this volatility has been driven by headlines around AI infrastructure demand, fresh partnerships with major cloud and enterprise customers, and rising investor interest in specialized GPU hosting as a long-term growth theme. At the same time, debates about how sustainable AI spending will be and how crowded the space is becoming have added a new layer of risk and speculation to the story.
• Right now, CoreWeave scores just 2/6 on our valuation checks. This means it only screens as undervalued on a couple of metrics. We will break down what different valuation approaches say about the stock and then finish with a more holistic way to judge whether the current price really makes sense.

CoreWeave scores just 2/6 on our valuation checks. See what other red flags we found in the full valuation breakdown.

Approach 1: CoreWeave Dividend Discount Model (DDM) Analysis

The Dividend Discount Model estimates what a stock should be worth by projecting all future dividends a company will pay and discounting them back to today. It works best for mature, consistently profitable firms, which is important context for CoreWeave.

CoreWeave currently pays a very small dividend of $0.0078 per share, but the model flags major concerns about its sustainability. The company is running with a deeply negative return on equity of about -88%, and the implied dividend growth rate from the DDM calculation is roughly -94.5%. This suggests the model expects dividends to shrink dramatically rather than grow over time. This weak profitability profile makes it hard for the model to justify meaningful, long term payouts.

When these inputs are run through the DDM, CoreWeave’s intrinsic value comes out near $0.01 per share. This implies the stock is about 970246.5% above what the dividend stream alone would support. On this metric, the shares screen as extremely overvalued and highly speculative for dividend focused investors.

Result: OVERVALUED

Our Dividend Discount Model (DDM) analysis suggests CoreWeave may be overvalued by 970246.5%. Discover 908 undervalued stocks or create your own screener to find better value opportunities.

Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for CoreWeave.

Approach 2: CoreWeave Price vs Sales

For high growth, often unprofitable tech companies, the price to sales ratio is usually a more useful yardstick than earnings based metrics, because revenue tends to be more stable and less distorted by heavy upfront investment.

In general, faster growth and lower risk can justify a higher price to sales multiple, while slower growth or lumpier fundamentals usually warrant a lower one. Against that backdrop, CoreWeave currently trades at around 8.37x sales. That is well above the broader IT industry average of about 2.44x, but meaningfully below the 25.89x peer group average for more comparable high growth names.

Simply Wall St’s Fair Ratio framework goes a step further by asking what multiple would make sense once we factor in CoreWeave’s specific growth outlook, profitability profile, risk, industry and size. On this basis, the model suggests a Fair Ratio of roughly 27.64x. This implies investors might reasonably pay far more for each dollar of sales than they currently are. Compared with today’s 8.37x, this points to CoreWeave looking attractively priced on a sales based lens.

Result: UNDERVALUED

PS ratios tell one story, but what if the real opportunity lies elsewhere? Discover 1446 companies where insiders are betting big on explosive growth.

Upgrade Your Decision Making: Choose your CoreWeave Narrative

Earlier we mentioned that there is an even better way to understand valuation, so let us introduce you to Narratives, a simple framework that lets you attach a clear story to your numbers by combining your view of a company with your assumptions for future revenue, earnings, margins and, ultimately, fair value. A Narrative links three pieces together: what you believe about the business, how that belief translates into a financial forecast, and what fair value estimate logically follows from that forecast. On Simply Wall St’s Community page, used by millions of investors, Narratives are an easy, accessible tool that help you consider potential buy or sell decisions by continuously comparing your Fair Value to the current market price. Because Narratives update dynamically as new information, such as fresh earnings or major news, is released, your thesis and estimated Fair Value stay aligned with reality instead of going stale. For example, one CoreWeave Narrative might assume rapid AI infrastructure adoption and assign a much higher fair value than another Narrative that expects competitive pressure to erode margins and keeps the fair value far lower.

Do you think there's more to the story for CoreWeave? Head over to our Community to see what others are saying!

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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