Rezolve AI (RZLV): Assessing Valuation After Recent Share Price Rebound and DCF Undervaluation Signal

Rezolve AI stock reaction to recent performance

Rezolve AI (RZLV) has experienced a choppy ride, with the share price up slightly over the past month but still down sharply over the past 3 months and year to date.

See our latest analysis for Rezolve AI.

The recent 1 day share price return of 28.02 percent has given RZLV a jolt of positive momentum, but that sits against a much weaker 3 year total shareholder return of negative 70.48 percent, so sentiment is still in repair mode at a share price of 2.97 dollars.

If Rezolve AI has caught your eye, this could be a useful moment to compare it with other high growth tech names using our high growth tech and AI stocks.

With revenue surging but losses still deep and the share price far below analyst targets, the key question now is whether Rezolve AI is an overlooked value in a booming sector or whether the market already reflects its future growth.

DCF fair value of $8.75, how does that compare?

Our DCF model estimates Rezolve AI's fair value at 8.75 dollars per share, compared with the latest 2.97 dollar close.

The SWS DCF model projects the company’s future cash flows over time, then discounts them back to today using an appropriate rate to reflect risk and the time value of money.

For a high growth, loss making software business like Rezolve AI, this approach places more weight on the potential scale of future revenues and margins than on current losses, which remain significant at 217.53 million dollars on just 5.30 million dollars of revenue.

Given the forecast revenue growth of around 85 percent per year and expectations that the company stays unprofitable for at least three years, the valuation depends on how quickly operating leverage can emerge and whether Rezolve AI can turn its generative AI platform into a durable cash generator.

Look into how the SWS DCF model arrives at its fair value.

Result: DCF fair value of $8.75 (UNDERVALUED)

However, sustained heavy losses and a highly competitive generative AI landscape could quickly challenge the bullish growth narrative if execution slips.

Find out about the key risks to this Rezolve AI narrative.

Build Your Own Rezolve AI Narrative

If you see the story differently or want to dig into the numbers yourself, you can build a complete view in minutes: Do it your way.

A great starting point for your Rezolve AI research is our analysis highlighting 2 key rewards and 4 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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