A Look At Quantum Computing (QUBT) Valuation After Cash Raise And Luminar Semiconductor Acquisition

Quantum Computing (QUBT) has moved into the spotlight after raising US$1.25b in cash and agreeing to acquire Luminar Semiconductor for US$110 million, steps that reshape its photonics focused quantum computing ambitions.

See our latest analysis for Quantum Computing.

Those moves come after a choppy year for the stock, with a recent 1 day share price return of 4.15% and 7 day return of 9.98% contrasting with a 30 day share price decline of 20.07%. Even so, total shareholder return sits at 46.16% over one year and is very large over three years, suggesting momentum has cooled in the short term while longer term holders have still seen strong gains.

If this quantum story has your attention, it might be a good moment to see what else is setting up in the space through our 23 quantum computing stocks.

With QUBT trading at US$9.04 against an average analyst target of US$18.00, along with fresh cash and the Luminar deal in play, you have to ask whether this is a genuine mispricing or if the market is already factoring in substantial future growth.

Most Popular Narrative: 61.8% Undervalued

With Quantum Computing last closing at $9.04 and the most followed narrative pointing to a fair value of $23.67, the gap between story and price is wide and worth understanding.

Acceleration of AI and data center workloads is driving urgent demand for energy efficient, high speed computing. This is positioning QCi’s room temperature photonic quantum and reservoir computing platforms to scale from small research contracts to larger production deployments, which should expand revenue and support higher gross margins as volumes increase.

Read the complete narrative.

Want to see what sits behind that confidence in scale, revenue and margins? The narrative leans on aggressive growth, a sharp margin shift and a future earnings profile that only makes sense if those quantum and photonic bets really land. Curious which assumptions have to line up for $23.67 to hold up? The full narrative lays out the numbers step by step.

Result: Fair Value of $23.67 (UNDERVALUED)

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

However, there are clear pressure points, including very small current revenue, rising quarterly operating expenses, and the risk that its thin film approach does not win out.

Find out about the key risks to this Quantum Computing narrative.

Another Angle On Value

The story so far leans heavily on long term earnings forecasts, but the current P/B of 2.3x paints a different picture. That is slightly higher than the US Tech industry at 2.2x, yet much lower than the 12.1x peer average. This points to both potential valuation upside and downside risk, depending on which group you think QUBT should sit closer to.

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

Next Steps

After all of this, are you leaning more bullish or cautious on QUBT, and are you ready to move quickly on your own view by weighing its 1 key reward and 4 important warning signs?

Looking for more investment ideas?

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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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