Canaan Valuation

Is CAN undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of CAN when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: CAN ($1.97) is trading below our estimate of fair value ($8.17)

Significantly Below Fair Value: CAN is trading below fair value by more than 20%.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for CAN?

Key metric: As CAN is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for CAN. This is calculated by dividing CAN's market cap by their current revenue.
What is CAN's PS Ratio?
PS Ratio2.5x
SalesUS$229.63m
Market CapUS$566.85m

Price to Sales Ratio vs Peers

How does CAN's PS Ratio compare to its peers?

The above table shows the PS ratio for CAN vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average0.7x
CRSR Corsair Gaming
0.6x10.2%US$772.7m
KODK Eastman Kodak
0.4xn/aUS$423.7m
HEAR Turtle Beach
1x14.7%US$316.9m
PMTS CPI Card Group
0.7x7.9%US$332.0m
CAN Canaan
2.5x43.8%US$566.8m

Price-To-Sales vs Peers: CAN is expensive based on its Price-To-Sales Ratio (2.5x) compared to the peer average (0.7x).


Price to Sales Ratio vs Industry

How does CAN's PS Ratio compare vs other companies in the US Tech Industry?

7 CompaniesPrice / SalesEstimated GrowthMarket Cap
XRX Xerox Holdings
0.2x-0.5%US$1.12b
QMCO Quantum
0.2x-2.1%US$43.76m
SONM Sonim Technologies
0.3x42.4%US$16.25m
BRQS.F Borqs Technologies
0.2xn/aUS$7.82m
CAN 2.5xIndustry Avg. 1.0xNo. of Companies7PS01.22.43.64.86+
7 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: CAN is expensive based on its Price-To-Sales Ratio (2.5x) compared to the US Tech industry average (1x).


Price to Sales Ratio vs Fair Ratio

What is CAN's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

CAN PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio2.5x
Fair PS Ratio0.1x

Price-To-Sales vs Fair Ratio: CAN is expensive based on its Price-To-Sales Ratio (2.5x) compared to the estimated Fair Price-To-Sales Ratio (0.1x).


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst CAN forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$1.97
US$2.47
+25.5%
21.5%US$3.00US$1.89n/a4
Nov ’25US$1.25
US$2.48
+98.6%
21.3%US$3.02US$1.92n/a4
Oct ’25US$0.97
US$3.68
+279.7%
48.3%US$6.68US$2.00n/a4
Sep ’25US$0.92
US$4.80
+420.5%
37.5%US$6.60US$3.00n/a2
Aug ’25US$0.98
US$4.74
+385.1%
37.1%US$6.50US$2.98n/a2
Apr ’25US$1.40
US$2.75
+96.4%
9.1%US$3.00US$2.50n/a2
Mar ’25US$1.63
US$2.75
+68.7%
9.1%US$3.00US$2.50n/a2
Feb ’25US$1.38
US$4.24
+207.4%
29.4%US$5.49US$2.99n/a2
Jan ’25US$2.31
US$4.24
+83.7%
29.4%US$5.49US$2.99n/a2
Dec ’24US$1.59
US$4.99
+213.9%
29.2%US$6.46US$3.01n/a3
Nov ’24US$1.80
US$5.27
+192.7%
18.1%US$6.31US$4.00US$1.253
Oct ’24US$1.82
US$5.27
+189.4%
18.1%US$6.31US$4.00US$0.973
Sep ’24US$1.99
US$5.27
+164.7%
18.1%US$6.31US$4.00US$0.923
Aug ’24US$3.15
US$5.33
+69.1%
19.2%US$6.49US$4.00US$0.983
Jul ’24US$2.13
US$5.33
+150.1%
19.2%US$6.49US$4.00US$1.033
Jun ’24US$1.95
US$5.33
+173.2%
19.2%US$6.49US$4.00US$1.013
May ’24US$2.75
US$6.53
+137.5%
31.9%US$9.11US$4.00US$0.873
Apr ’24US$2.70
US$6.53
+141.9%
31.9%US$9.11US$4.00US$1.403
Mar ’24US$2.78
US$7.51
+170.1%
32.2%US$9.24US$4.09US$1.633
Feb ’24US$3.31
US$7.01
+111.9%
30.3%US$9.03US$4.00US$1.384
Jan ’24US$2.06
US$7.01
+240.5%
30.3%US$9.03US$4.00US$2.314
Dec ’23US$2.52
US$7.01
+178.3%
30.3%US$9.03US$4.00US$1.594
Nov ’23US$3.02
US$7.66
+153.5%
20.8%US$8.88US$5.00US$1.804

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.


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