D-Wave Quantum (QBTS) Valuation Check After New Wall Street Coverage and Advantage2 Launch

Wall Street has finally put D-Wave Quantum (QBTS) firmly on its radar, with Jefferies and other firms initiating upbeat coverage after the Advantage2 system launched on Leap and new government-focused initiatives began to take shape.

See our latest analysis for D-Wave Quantum.

The stock has been choppy in the short term, with a 7 day share price return of minus 11.04 percent offset by a 30 day share price return of 8.55 percent. However, the 1 year total shareholder return of 290.74 percent and year to date share price return of 159 percent show that momentum, fueled by Advantage2 milestones and fresh Wall Street coverage, is still firmly on the front foot.

If D-Wave’s run has you thinking about what else could break out from this quantum and AI wave, now is a good time to explore high growth tech and AI stocks.

With Wall Street targets implying roughly 55 percent upside from here, yet losses remain steep and quantum commercialization is years out, is D-Wave still an underappreciated disruptor, or is the market already pricing in that future growth?

Price to Book of 13x, Is it justified?

At 24.89 dollars per share, D-Wave Quantum is pricing in a rich valuation, with its 13 times price to book multiple well ahead of peers.

The price to book ratio compares the company’s market value to its net assets on the balance sheet, a common yardstick for early stage, asset light software and hardware platforms. For a business that is still deeply loss making, a high multiple usually signals investors are paying up today for the possibility of materially larger revenue and ecosystem scale tomorrow.

In D-Wave’s case, the market is assigning a much steeper premium than both its direct peer group average of 7.5 times price to book and the broader US software sector average of 3.4 times. That sharp gap suggests investors are already assuming very strong future growth and successful commercialization. This can leave less room for disappointment if execution or adoption slows.

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

Result: Price to Book of 13x (OVERVALUED)

However, steep ongoing losses and the long runway to broad quantum commercialization could quickly challenge today’s valuation if adoption or funding conditions weaken.

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

Another View: DCF Signals a Milder Premium

Our DCF model paints a slightly different picture, suggesting fair value around 21.01 dollars versus the current 24.89 dollars. That points to a more modest premium than the punchy 13 times price to book, leaving investors weighing near term excitement against a smaller DCF overvaluation.

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

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out D-Wave Quantum for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 916 undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Build Your Own D-Wave Quantum Narrative

If you want to dig into the numbers yourself or challenge this view with your own research, you can build a personalized D-Wave story in just a few 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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