Iris Energy Limited

NasdaqGS:IREN Stock Report

Market Cap: US$590.1m

Iris Energy Valuation

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

Valuation Score

3/6

Valuation Score 3/6

  • 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 ($5.4) is trading below our estimate of fair value ($10.65)

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?

Other financial metrics that can be useful for relative valuation.

IREN key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue4.1x
Enterprise Value/EBITDA-89.7x
PEG Ration/a

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 Average3.6x
RDZN Roadzen
10.7xn/aUS$444.9m
PGY Pagaya Technologies
0.9x17.4%US$723.8m
PRCH Porch Group
1x8.3%US$403.1m
DAVE Dave
1.9x18.4%US$482.3m
IREN Iris Energy
4.8x51.2%US$590.1m

Price-To-Sales vs Peers: IREN is expensive based on its Price-To-Sales Ratio (4.8x) compared to the peer average (3.6x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a15.5%
n/an/an/a
No. of CompaniesPS048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a15.5%
n/an/an/a
No more companies

Price-To-Sales vs Industry: IREN is expensive based on its Price-To-Sales Ratio (4.8x) compared to the US Software industry average (4.3x).


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 Ratio4.8x
Fair PS Ratio19.6x

Price-To-Sales vs Fair Ratio: IREN is good value based on its Price-To-Sales Ratio (4.8x) compared to the estimated Fair Price-To-Sales Ratio (19.6x).


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$5.40
US$11.07
+105.0%
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$8.00n/a7
Nov ’24US$3.04
US$9.50
+212.5%
23.0%US$14.00US$7.50n/a7
Oct ’24US$3.71
US$10.71
+188.8%
52.5%US$24.00US$6.00n/a7
Sep ’24US$4.55
US$11.33
+149.1%
50.6%US$24.00US$8.00n/a6
Aug ’24US$6.24
US$10.83
+73.6%
55.0%US$24.00US$7.00n/a6
Jul ’24US$4.66
US$9.00
+93.1%
22.2%US$13.00US$7.00n/a6
Jun ’24US$3.58
US$8.17
+128.1%
29.5%US$13.00US$5.00n/a6
May ’24US$3.67
US$7.33
+99.8%
31.2%US$11.00US$4.00n/a6
Apr ’24US$3.06
US$6.90
+125.5%
22.6%US$8.00US$4.00n/a5
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
Nov ’23US$3.39
US$8.13
+139.9%
36.1%US$14.00US$4.30US$3.046
Oct ’23US$4.13
US$7.54
+82.6%
37.7%US$14.00US$4.30US$3.717
Sep ’23US$4.01
US$12.29
+206.4%
42.8%US$22.00US$6.00US$4.557
Aug ’23US$4.04
US$17.00
+320.8%
19.7%US$22.00US$14.00US$6.245
Jul ’23US$3.60
US$18.67
+418.5%
25.8%US$27.00US$14.00US$4.666
Jun ’23US$5.73
US$18.67
+225.8%
25.8%US$27.00US$14.00US$3.586
May ’23US$8.69
US$26.50
+204.9%
10.2%US$31.00US$22.00US$3.676
Apr ’23US$15.80
US$26.50
+67.7%
10.2%US$31.00US$22.00US$3.066
Mar ’23US$15.11
US$25.00
+65.5%
15.3%US$31.00US$18.00US$2.747

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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