Should You Take Another Look at CoreWeave After Its 51% Surge in 2025?

If you have been watching CoreWeave lately, you are not alone. Investors are increasingly talking about whether now is the right time to get in, or rethink their holdings, after CoreWeave’s stock surged by 51.3% this last month and rose 237.0% year-to-date. That kind of rally tends to catch the market’s attention, but the real question is whether the price is racing ahead of fundamentals, or if even more upside is possible.

Much of the excitement is tied to a wave of positive sentiment around cloud infrastructure and artificial intelligence. CoreWeave is often at the intersection of both trends, leaving investors to wonder if the company is being fairly valued or still flying under the radar. While there is no shortage of buzz, it is valuation that will help you decide how lofty or reasonable these price levels really are.

Our deep dive into CoreWeave’s value score reveals that the company is currently undervalued by 4 out of 6 key checks, which can be an encouraging sign for those weighing a position. But stock valuation can be more art than science. In the sections ahead, I will walk you through the main approaches to assessing CoreWeave’s worth. Stick around to the end, where we’ll explore an even more insightful way to think about company valuation beyond the numbers.

CoreWeave delivered 0.0% returns over the last year. See how this stacks up to the rest of the IT industry.

Approach 1: CoreWeave Discounted Cash Flow (DCF) Analysis

The Discounted Cash Flow (DCF) model estimates a company's intrinsic value by projecting its expected future cash flows and then discounting them back to their present value. This method helps investors judge what a business is truly worth today, based on estimates of tomorrow's performance.

For CoreWeave, current Free Cash Flow (FCF) stands at a negative $11.1 Million, which highlights that the company is still investing heavily in its operations and growth. Analysts project that CoreWeave’s annual FCF will rise, with forecasts moving from negative $8.9 Million in 2026 to a positive $2.85 Million by 2029. Beyond the next five years, Simply Wall St extrapolates these figures and estimates a steady ramp-up to more robust cash flow in the following years.

After discounting these future projections to today’s dollars, the DCF model calculates an intrinsic value for CoreWeave of $201.79 per share. With the DCF approach indicating the stock is trading at a 33.2% discount to its fair value, CoreWeave appears significantly undervalued at current prices.

Result: UNDERVALUED

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

Our Discounted Cash Flow (DCF) analysis suggests CoreWeave is undervalued by 33.2%. Track this in your watchlist or portfolio, or discover more undervalued stocks.

Approach 2: CoreWeave Price vs Sales

The Price-to-Sales (P/S) ratio is widely used as a valuation metric, especially for high-growth technology companies that may not yet be profitable. Unlike earnings-based multiples, the P/S ratio lets investors compare companies on their ability to generate revenue. This can be particularly insightful when profits are still in the future or vary widely year to year.

Typically, higher growth expectations and lower risks warrant a higher “normal” or “fair” P/S ratio. For CoreWeave, the current P/S multiple stands at 19.82x. By comparison, the average P/S ratio for CoreWeave’s industry is just 2.38x and the peer average is 21.80x. This signals that the market recognizes its strong growth potential but is also pricing in premium expectations.

Simply Wall St’s "Fair Ratio" is a proprietary assessment that takes into account much more than just sales. It factors in CoreWeave’s projected growth, relative risks, profit margins, position within its industry, and market cap. This provides a more tailored benchmark and helps avoid the pitfalls of simple peer or industry comparisons. CoreWeave’s Fair Ratio is 47.50x, suggesting that based on all available information, the stock is significantly undervalued by this measure.

Result: UNDERVALUED

PS ratios tell one story, but what if the real opportunity lies elsewhere? Discover 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’s introduce you to Narratives. A Narrative is your own story or perspective on a company, combining what you believe about its future with actual financial numbers such as fair value, future revenue, earnings, and margins. In other words, Narratives help you connect the story you see unfolding for CoreWeave to a financial forecast and then to an estimated fair value.

Narratives are easy to create and use right on Simply Wall St’s Community page, where millions of investors share and discuss their views. By comparing your Narrative’s Fair Value to the current market Price, you get a clear and personal way to decide whether to buy, hold, or sell. These Narratives stay current by automatically updating as fresh news or earnings reports are released. For example, some investors see CoreWeave rapidly expanding its competitive moat and set a much higher fair value. Others, more cautious about risks, set a lower value. Narratives make investment decision-making smarter, more flexible, and tailored to your outlook.

Do you think there's more to the story for CoreWeave? Create your own Narrative to let the Community know!

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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