A Look at D-Wave Quantum's Valuation Following Major European Deal and Speculation of US Investment

D-Wave Quantum (NYSE:QBTS) just landed a €10 million agreement to deploy its advanced Advantage2 quantum annealing system in Europe. At the same time, rumors of possible US government investment continue sparking discussion across the market.

See our latest analysis for D-Wave Quantum.

D-Wave Quantum’s stock has been on an extraordinary run, climbing nearly 233% year-to-date and delivering an eye-catching 2,707% total shareholder return over the past year. Recent headlines, including the landmark European Advantage2 deal and speculation over potential U.S. government investment, have amplified both momentum and volatility in the share price. Investors are positioning for long-term quantum growth but remain wary of dilution and competition from tech giants.

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With the stock surging ahead of its fundamentals, the key question becomes whether D-Wave’s upside is just beginning, or if the market has already factored in every bit of good news and there is little room for further gains.

Price-to-Book of 15.8x: Is it justified?

D-Wave Quantum currently trades at a price-to-book ratio of 15.8, which is notably higher than both the US software industry average and its immediate peer group. Compared to its last close price of $32, this elevated valuation is difficult to ignore when set against sector benchmarks.

The price-to-book ratio measures how much investors are willing to pay for each dollar of net assets. For software companies, this ratio can sometimes be high due to expectations of future innovation, but 15.8x is especially steep for an enterprise that remains unprofitable.

D-Wave’s price-to-book ratio stands out as expensive. The US Software industry averages 3.9x, and its peer group sits at 14x. This suggests the market is pricing in substantial future growth, far above what is typical for companies at this stage, making the current multiple appear hard to justify on fundamentals alone.

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

Result: Price-to-Book of 15.8x (OVERVALUED)

However, persistent unprofitability and the stock trading below analyst price targets could quickly dampen sentiment if growth slows or competition intensifies.

Find out about the key risks to this D-Wave Quantum narrative.

Build Your Own D-Wave Quantum Narrative

If you have a different perspective or want to reach your own conclusions, you can quickly analyze the numbers and build your own take in just minutes. Do it your way

A great starting point for your D-Wave Quantum research is our analysis highlighting 1 key reward 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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