Reassessing D-Wave Quantum (QBTS) Valuation as It Launches a U.S. Government-Focused Quantum Business Unit

D-Wave Quantum (QBTS) just carved out a dedicated business unit to court U.S. government work, a meaningful shift that ties its quantum hardware and services directly to rising federal, defense, and national security demand.

See our latest analysis for D-Wave Quantum.

The move comes as D-Wave’s share price has swung sharply, with an 11.47 percent 1 day share price return and a 30 day share price pullback after a powerful 90 day share price return and 1 year total shareholder return of 744.44 percent. This suggests momentum is pausing rather than broken as investors reassess risk around valuation and cash burn.

If this kind of quantum driven rerating has your attention, it could be a good moment to explore other high growth tech names through high growth tech and AI stocks and see what else is emerging.

With shares still trading at a steep premium to today’s tiny revenues but at a heavy discount to bullish analyst targets, are investors staring at an early entry into a quantum winner or a market already pricing in tomorrow’s growth?

Price to Book of 13.1x: Is it justified?

On a price to book basis, D-Wave Quantum’s last close of $25.08 sits at a valuation that looks stretched against both software peers and its own fundamentals.

The price to book multiple compares the company’s market value to its accounting equity, a common yardstick for asset light, IP heavy software and platform businesses. For D-Wave Quantum, that figure stands at 13.1 times, which implies investors are assigning a very high premium to its current balance sheet.

Against the broader U.S. Software industry’s average of 3.4 times book value, D-Wave Quantum’s 13.1 times multiple signals aggressive expectations for future growth and commercialization of its quantum technology rather than today’s loss making reality. When compared with a peer group average of 10.4 times, the stock still screens meaningfully more expensive, which suggests the market is already paying up for a best in class outcome rather than a work in progress.

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

Result: Price to book of 13.1x (OVERVALUED)

However, risks remain, including heavy cash burn against modest $24 million revenues and the possibility that government demand or commercialization will ramp more slowly than expected.

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

Build Your Own D-Wave Quantum Narrative

If you would rather dig into the numbers yourself and challenge this view, you can build a personalized D-Wave Quantum storyline in minutes: Do it your way.

A great starting point for your D-Wave Quantum 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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