Quantum Computing (QUBT): Has the 2.8x Price-to-Book Ratio Stretched Valuation After Recent Share Price Weakness?

Quantum Computing (QUBT) has quietly slipped more than 50% over the past 3 months, even as annual revenue growth tops 120%. This sets up an interesting tension between ambitious technology plans and a skeptical market.

See our latest analysis for Quantum Computing.

Zooming out, that 90 day share price return of around negative 53% comes after a huge three year total shareholder return of nearly 600%. This suggests momentum has sharply cooled as investors reassess execution risk versus long run upside.

If QUBT has you rethinking where the next big tech story might come from, this is a good moment to scout other high growth tech and AI stocks that could be earlier in their rerating cycle.

With revenue growing triple digits but losses still steep and the share price far below analyst targets, investors face a key question: Is QUBT now a mispriced quantum contender, or is the market already discounting future growth?

Price to Book of 2.8x, Is it justified?

On a price to book basis, Quantum Computing trades at 2.8 times its book value, making the stock look more expensive than the wider US tech sector but cheaper than its more direct peers.

The price to book ratio compares a company’s market value to the net assets on its balance sheet. This can be a useful lens for early stage or unprofitable tech names where earnings do not yet capture future potential. For QUBT, paying 2.8 times book suggests investors are already ascribing meaningful value to its photonics and quantum IP despite minimal current revenue.

That premium stance is underscored by the fact QUBT is unprofitable and forecast to remain so over the next three years, while losses have actually been increasing over the past five years. Relative to the US tech industry average multiple of 2.2 times book, the market is effectively pricing in above average future growth or asset monetisation. However, compared with a 5.1 times peer average, QUBT still sits at a discount that implies more skepticism about its ability to fully capitalise on its technology stack.

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

Result: Price to Book of 2.8x (OVERVALUED)

However, steep ongoing losses and execution risk around commercialising its entropy quantum computer and photonics products could quickly undermine the current growth narrative.

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

Build Your Own Quantum Computing Narrative

Ultimately, if our framing does not align with your view or you prefer hands on analysis, you can build a complete narrative yourself in just a few minutes, 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.

Ready for more high conviction 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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