Assessing Quantum Computing (QUBT) Valuation After Rosenblatt Coverage And Luminar Asset Bid

Investor interest in Quantum Computing (QUBT) has picked up after Rosenblatt Securities began covering the stock and the company moved to acquire additional Luminar Technologies assets, signaling bigger plans in quantum photonics manufacturing.

See our latest analysis for Quantum Computing.

Those Luminar asset moves and fresh coverage have come against a choppy backdrop, with Quantum Computing’s share price showing a 9.55% 1 month gain but a 19.77% 3 month decline, while the 3 year total shareholder return is very large. This points to momentum that has swung sharply in both directions around news and changing risk appetite.

If quantum photonics headlines have caught your eye, it could be a good moment to scan other high growth tech names through high growth tech and AI stocks and see what else fits your watchlist.

With Quantum Computing trading at US$11.93 against a US$18.00 analyst target and a very large 3 year total return after a sharp pullback, you have to ask: is there still a buying opportunity here, or is the market already pricing in future growth?

Price to Book of 3x: Is It Justified?

At US$11.93, Quantum Computing trades on a P/B of about 3x, which screens as expensive against the broader US Tech sector but cheaper than its closer peers.

P/B compares a company’s market value to its net assets on the balance sheet. It is often used for early stage, unprofitable or asset focused names where earnings based ratios are less useful. For Quantum Computing, the market is paying more than the sector average for each dollar of book value, while the company is still reporting losses and very small revenue.

Against the wider US Tech industry average P/B of 2.3x, Quantum Computing’s 3x multiple sits at a clear premium. This points to the market assigning a higher value to its quantum photonics assets and perceived growth potential. Compared to its immediate peer set though, where the average P/B sits at 13.4x, the company trades at a steep discount. This highlights how differently investors are pricing balance sheet assets across this niche.

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

Result: Price to book of 3x (ABOUT RIGHT)

However, you still have to weigh a net loss of US$68.355m on just US$0.546m of revenue, along with a recent 19.77% 3‑month share price decline.

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

Build Your Own Quantum Computing Narrative

If you look at the numbers and come to a different conclusion, or simply prefer to test your own assumptions against the data, you can build a full Quantum Computing view in just a few minutes with Do it your way

A great starting point for your Quantum Computing research is our analysis highlighting 1 key reward and 4 important warning signs that could impact your investment decision.

Looking for more investment ideas?

If Quantum Computing is on your radar, do not stop there. Broaden your watchlist with a few targeted screens that surface very different kinds of opportunities.

• Spot potential high risk high reward names by scanning these 3530 penny stocks with strong financials that already show stronger balance sheets than many expect at this price range.
• Zero in on future facing themes by checking these 24 AI penny stocks that tie artificial intelligence to real business models instead of just headlines.
• Hunt for value focused ideas by reviewing these 872 undervalued stocks based on cash flows that might offer more attractive pricing based on their projected cash flows.

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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