A Look at TeraWulf (WULF) Valuation Following Major Fluidstack Deal and Alphabet-Backed Expansion

TeraWulf is having a moment that few investors can ignore, after announcing a $6.7 billion contracted revenue deal with Fluidstack, a company backed by none other than Alphabet. At the same time, TeraWulf secured a $1 billion convertible notes fundraising and saw Alphabet increase its potential equity stake through an expanded financial backstop. These connected moves are turning heads, as the combination of deep-pocketed partners and new capital suggests a dramatic leap in the company's growth trajectory.

It has not just been headlines. Over the past year, TeraWulf’s stock has soared an eye-catching 1,093%, with momentum building further this past month. Recent weeks brought heavy options trading and insider share sales near the 52-week high, a signal that traders are watching every development closely and recalibrating risk and reward as the company transforms its business profile. The surge in call options matches the corporate news, indicating investors see a significant runway ahead, though the scale of these moves means sentiment could swing quickly as results materialize.

After such a powerful run, it is only natural to ask whether there is still value left on the table for buyers, or if the market is already pricing in TeraWulf’s promised growth.

Most Popular Narrative: 7.7% Undervalued

According to the most widely followed narrative, TeraWulf is currently seen as undervalued by about 8 percent, reflecting optimism around its transformative deals and projected financial turnaround.

Long-term partnerships and investments from marquee players, Google's $1.8B lease backstop and equity stake, signal institutional validation, enhance creditworthiness, and are likely to lower WULF's future cost of capital. This directly supports margin expansion and accelerated infrastructure growth.

What if TeraWulf's jump into digital infrastructure isn’t just headline hype? There’s a pivotal number driving this bullish outlook. The analyst narrative assumes a rapid transformation, with explosive growth rates, a steep profit swing, and a premium multiple that rivals some of the hottest tech stocks. Curious which bold financial assumptions are fueling this premium fair value? Uncover the key figures that set this story apart.

Result: Fair Value of $12.18 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, steadier profits hinge on new contracts succeeding and sustained demand for AI hosting. Any falter in these areas could rapidly unwind today’s bullish outlook.

Find out about the key risks to this TeraWulf narrative.

Another View: Are These Growth Assumptions Too Bold?

While analysts see TeraWulf as undervalued on future earnings, a different lens tells a cautionary story. The company's price-to-sales ratio is much higher than the industry average. This raises doubts about the market's optimism and leads to the question: could these rich expectations set up a reality check ahead?

See what the numbers say about this price — find out in our valuation breakdown.

Stay updated when valuation signals shift by adding TeraWulf to your watchlist or portfolio. Alternatively, explore our screener to discover other companies that fit your criteria.

Build Your Own TeraWulf Narrative

If you see things differently, or want to draw your own conclusions, try building a custom take on the numbers in just a few minutes by using Do it your way.

A great starting point for your TeraWulf research is our analysis highlighting 1 key reward and 2 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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