Assessing D-Wave Quantum (QBTS) Valuation After A Sharp Multi‑Month Share Price Pullback

D-Wave Quantum (QBTS) has drawn fresh attention after a sharp pullback, with the stock down about 30% over the past month and roughly 22% over the past 3 months.

See our latest analysis for D-Wave Quantum.

At a share price of US$18.06, D-Wave Quantum has seen momentum cool recently, with a 30 day share price return of a 29.54% decline and a year to date share price return of a 35.8% decline, even though the 1 year total shareholder return of 149.1% and very large 3 year total shareholder return suggest earlier optimism about its quantum computing potential and risk profile.

If this quantum pullback has your attention, it could be a good moment to see what else is moving in the space through our 23 quantum computing stocks.

With the shares pulling back, yet still carrying a very large multiyear return and trading at a discount to some analyst targets and intrinsic estimates, you have to ask: is this a rare entry point, or is future growth already priced in?

Most Popular Narrative: 53.1% Undervalued

At $18.06, the most followed narrative on D-Wave Quantum places fair value at $38.55, implying a large gap between current price and what that narrative assumes.

Growing global adoption of quantum optimization for high value logistics, manufacturing and defense workflows, evidenced by production grade deployments such as BASF, Davidson and North Wales Police, should expand recurring QCaaS usage and may support sustained double digit revenue growth.

Read the complete narrative.

Curious what kind of revenue surge and margin shift would need to line up for that fair value to make sense? The narrative focuses on rapid top line expansion, improving profitability and a future earnings multiple that only a handful of software names tend to command. Want to see the exact assumptions behind that move from current losses to those projected earnings?

Result: Fair Value of $38.55 (UNDERVALUED)

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

However, this hinges on more than just optimism, because any slowdown in large system deals or longer losses from rising R&D and go to market spend could quickly challenge it.

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

Another View: Price Ratio Signals Caution

That undervalued narrative runs into pushback when you look at the current P/B ratio. D-Wave Quantum trades around 10x book value, compared with 2.7x for the wider US software group and 9.7x for close peers, which suggests investors are already paying a steep premium.

For you, that gap means less room for error. If expectations around revenue growth or future profitability soften, a premium P/B multiple can compress quickly. The question is whether you think D-Wave Quantum's quantum position comfortably justifies paying more than both peers and the broader industry.

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

Next Steps

If this mix of optimism and caution feels familiar, it is a good time to look at the full picture yourself and move quickly to sharpen your own view, especially given there are 2 key rewards and 4 important warning signs that could sway your decision.

Looking for more investment ideas?

If this has sharpened your thinking on D-Wave Quantum, do not stop there, broaden your watchlist with other ideas that could suit your approach.

• Target potential mispricing by scanning our list of 53 high quality undervalued stocks, where strong fundamentals meet what may be undemanding expectations.
• Strengthen your focus on capital preservation by checking companies in the 85 resilient stocks with low risk scores that carry lower risk scores and more resilient profiles.
• Hunt for future standouts by reviewing the screener containing 23 high quality undiscovered gems, a group of under the radar names with solid underlying numbers.

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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