On September 03, 2026, TeraWulf Inc WULF shares rose 9.5% to $16.23. This price movement comes amid a 52-week trading range of $8.60 to $29.84, reflecting significant volatility.
- GF Valueâ„¢ verdict: Current price of $16.23 vs GF Value of $5.62 indicates the stock is 188.8% overvalued.
- GF Scoreâ„¢: With a score of 38/100, WULF is classified as below average.
- Most notable signal: Insider activity shows a net selling of $35.3M over the past 12 months.
Is WULF Overvalued or Undervalued?
Based on the current price of $16.23 compared to the GF Valueâ„¢ of $5.62, TeraWulf Inc appears significantly overvalued, with a substantial 188.8% downside potential. The GF Valueâ„¢ is GuruFocus' proprietary estimate of a company's intrinsic value, which is derived from historical trading multiples, past business growth, and future performance estimates. Given that WULF is unprofitable and cash-flow negative, the earnings-based valuation often used by analysts, such as the Price-to-Earnings (P/E) ratio, is not applicable here.
The GF Valuation label categorizes WULF as significantly overvalued, which is a concern for potential investors. The significant gap between the current price and GF Valueâ„¢ suggests a lack of margin of safety for investment, indicating heightened risk for those considering entering or holding the stock at this valuation.
How Does WULF's Valuation Compare to Its History?
| Metric | Current | Historical |
|---|---|---|
| P/E (TTM) | N/A | ~13.1x (5-year median) |
| Forward P/E | 242.8x | N/A |
Since TeraWulf does not currently generate profits, it lacks a relevant trailing P/E ratio, which typically provides insights into historical valuation. The forward P/E of 242.8x starkly contrasts with the company's historical median of approximately 13.1x, underscoring the extreme overvaluation indicated by the GF Valueâ„¢. Therefore, the P/E analysis aligns with the GF Valueâ„¢ verdict that WULF is indeed overvalued.
What Does WULF's GF Scoreâ„¢ Tell Us?
The GF Scoreâ„¢ measures a company's financial strength, profitability, growth potential, valuation, and momentum. TeraWulf's score of 38/100 highlights significant weaknesses, particularly in profitability and growth, while demonstrating strong momentum.
| Metric | Rating |
|---|---|
| GF Scoreâ„¢ | 38 |
| Financial Strength | 3/10 |
| Profitability | 1/10 |
| Growth | 0/10 |
| Valuation | 1/10 |
| Momentum | 10/10 |
The scores indicate WULF's financial situation is precarious, particularly with a Financial Strength rating of 3/10 and a Profitability rank of 1/10, suggesting it struggles to generate profits and maintain a healthy balance sheet. Conversely, the high Momentum rank of 10/10 suggests that the stock has been performing well in the short term, which may attract speculative investors despite the underlying financial challenges.
What Are Gurus and Insiders Doing with WULF?
Currently, four gurus hold TeraWulf stock, with two increasing their positions and three trimming them in recent quarters. This indicates a mixed sentiment among institutional investors, highlighting both caution and potential interest in the stock.
Over the past 12 months, insiders have significantly sold shares, with net selling totaling $35.3 million against only $0.4 million in purchases. This pattern of insider selling raises red flags, suggesting that those with the most intimate knowledge of the company's operations are choosing to divest, which can be interpreted as a lack of confidence in the company’s future prospects.
What This Means for Investors
In summary, TeraWulf Inc is currently overvalued based on its GF Valueâ„¢ assessment, indicating a significant risk for investors considering entry at this price point. The combination of poor financial health, high valuation multiples, and concerning insider selling patterns suggests caution is warranted. For a more detailed analysis, you can visit the TeraWulf Inc WULF stock page and explore the GF Valueâ„¢ page for additional insights.
Frequently Asked Questions
What is WULF's GF Scoreâ„¢?
The GF Scoreâ„¢ for TeraWulf is 38/100, categorizing it as below average, indicating potential weaknesses in financial health and profitability.
Is WULF overvalued or undervalued?
WULF is deemed significantly overvalued according to the GF Valueâ„¢, with a current price of $16.23 compared to a GF Value of $5.62.
What is WULF's P/E ratio?
TeraWulf does not have a trailing P/E ratio available due to unprofitability, but it has a forward P/E of 242.8x, reflecting extreme overvaluation compared to historical norms.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
