IREN Valuation

Is IREN undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of IREN when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: IREN ($12.93) is trading below our estimate of fair value ($57.19)

Significantly Below Fair Value: IREN is trading below fair value by more than 20%.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for IREN?

Key metric: As IREN is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for IREN. This is calculated by dividing IREN's market cap by their current revenue.
What is IREN's PS Ratio?
PS Ratio12.2x
SalesUS$208.75m
Market CapUS$2.49b

Price to Sales Ratio vs Peers

How does IREN's PS Ratio compare to its peers?

The above table shows the PS ratio for IREN vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average18.3x
CLSK CleanSpark
10.5x38.2%US$3.7b
SOUN SoundHound AI
48.8x54.7%US$3.3b
YOU Clear Secure
3.3x10.8%US$3.6b
ESMT EngageSmart
10.6x20.5%US$3.9b
IREN IREN
12.2x40.7%US$2.5b

Price-To-Sales vs Peers: IREN is good value based on its Price-To-Sales Ratio (12.2x) compared to the peer average (18.3x).


Price to Sales Ratio vs Industry

How does IREN's PS Ratio compare vs other companies in the US Software Industry?

76 CompaniesPrice / SalesEstimated GrowthMarket Cap
VYX NCR Voyix
0.6x-23.2%US$2.12b
PGY Pagaya Technologies
0.8x15.8%US$796.22m
XPER Xperi
0.8x1.8%US$416.92m
0.6x1.1%US$416.81m
IREN 12.2xIndustry Avg. 5.5xNo. of Companies76PS048121620+
76 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: IREN is expensive based on its Price-To-Sales Ratio (12.2x) compared to the US Software industry average (5.5x).


Price to Sales Ratio vs Fair Ratio

What is IREN's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

IREN PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio12.2x
Fair PS Ratio18.4x

Price-To-Sales vs Fair Ratio: IREN is good value based on its Price-To-Sales Ratio (12.2x) compared to the estimated Fair Price-To-Sales Ratio (18.4x).


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst IREN forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$12.93
US$17.33
+34.1%
27.2%US$26.00US$9.50n/a9
Nov ’25US$9.05
US$15.44
+70.7%
29.9%US$26.00US$9.50n/a9
Oct ’25US$7.73
US$15.44
+99.8%
29.9%US$26.00US$9.50n/a9
Sep ’25US$7.91
US$16.25
+105.4%
28.8%US$26.00US$9.50n/a8
Aug ’25US$9.29
US$17.13
+84.4%
28.3%US$26.00US$11.00n/a8
Jul ’25US$12.62
US$14.87
+17.9%
30.3%US$23.00US$10.00n/a7
Jun ’25US$7.79
US$11.71
+50.4%
25.0%US$18.50US$9.50n/a7
May ’25US$4.33
US$11.00
+154.0%
28.0%US$18.50US$9.00n/a7
Apr ’25US$6.47
US$11.07
+71.1%
27.7%US$18.50US$9.00n/a7
Mar ’25US$5.99
US$11.14
+86.0%
27.2%US$18.50US$9.00n/a7
Feb ’25US$3.75
US$10.29
+174.3%
33.7%US$18.50US$8.00n/a7
Jan ’25US$7.15
US$9.64
+34.9%
20.5%US$14.00US$8.00n/a7
Dec ’24US$5.57
US$9.57
+71.8%
20.8%US$14.00US$8.00US$13.517
Nov ’24US$3.04
US$9.50
+212.5%
23.0%US$14.00US$7.50US$9.057
Oct ’24US$3.71
US$10.71
+188.8%
52.5%US$24.00US$6.00US$7.737
Sep ’24US$4.55
US$11.33
+149.1%
50.6%US$24.00US$8.00US$7.916
Aug ’24US$6.24
US$10.83
+73.6%
55.0%US$24.00US$7.00US$9.296
Jul ’24US$4.66
US$9.00
+93.1%
22.2%US$13.00US$7.00US$12.626
Jun ’24US$3.58
US$8.17
+128.1%
29.5%US$13.00US$5.00US$7.796
May ’24US$3.67
US$7.33
+99.8%
31.2%US$11.00US$4.00US$4.336
Apr ’24US$3.06
US$6.90
+125.5%
22.6%US$8.00US$4.00US$6.475
Mar ’24US$2.74
US$6.90
+151.8%
22.6%US$8.00US$4.00US$5.995
Feb ’24US$2.14
US$6.30
+194.4%
61.0%US$14.00US$3.00US$3.756
Jan ’24US$1.25
US$6.80
+444.0%
57.4%US$14.00US$3.00US$7.156
Dec ’23US$1.57
US$6.80
+333.1%
57.4%US$14.00US$3.00US$5.576

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.


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