TeraWulf (WULF) After Freedom Capital's Call Is The Anthropic Story A Bargain Or Priced In

Freedom Capital’s fresh coverage of TeraWulf (WULF) put the stock back on investor screens, as the broker highlighted robust fundamentals alongside a 20 year Anthropic contract that is expected to underpin recurring revenue.

Recent trading suggests momentum around TeraWulf is rebuilding, with an 8.18% 1 day share price return and a 21.91% 7 day share price return following the Freedom Capital note, even though the 90 day share price return is down 22.98%.

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Bulls point to TeraWulf’s 20 year Anthropic contract and rapid revenue expansion, while bears focus on recent share price volatility and ongoing losses. Which side does the current valuation support?

Most Popular Narrative: 52.9% Undervalued

The prevailing TeraWulf narrative points to a fair value of $37.94 against a last close of $17.86, which frames the stock as heavily discounted and highly dependent on long duration AI infrastructure contracts.

TeraWulf's recent multi-billion-dollar, multi-year hyperscale hosting agreements (e.g., with Fluidstack and Google) mark a significant shift from a pure bitcoin mining model toward diversified, contracted revenue streams in digital infrastructure with strong demand. This is described as underpinning higher revenue visibility and insulating earnings from bitcoin price volatility.

Read the complete narrative.

Want to see what sits behind that fair value estimate for TeraWulf? The narrative leans on rapid top line expansion, improving margins, and a future earnings multiple that implies robust expectations. Curious which specific growth and profitability assumptions have to line up to support that $37.94 figure and the sizeable gap to today’s price?

Result: Fair Value of $37.94 (UNDERVALUED)

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

Still, the TeraWulf story could be knocked off course if funding costs rise sharply or if key AI tenants fail to deliver on long-term leases.

Find out about the key risks to this TeraWulf narrative.

Another Look At TeraWulf’s Price Tag

While the prevailing TeraWulf story leans on a fair value of $37.94, the SWS DCF model points to a future cash flow value of $12.72. This frames the shares as trading above that estimate rather than below it. Which version of “fair” do you find more convincing?

Look into how the SWS DCF model arrives at its fair value.

Next Steps

Mixed signals around TeraWulf can create urgency, so move quickly to review the hard numbers, weigh both sides, and decide whether the balance of 1 key reward and 4 important warning signs feels acceptable for your own portfolio.

Looking for more investment ideas beyond TeraWulf?

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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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