On September 01, 2026, Applied Digital Corp APLD shares fell 4.4% to a current price of $24.29. This decline comes as part of a more significant trend, with the stock down 15.8% over the past week and 11.3% in the last month. The 52-week trading range for APLD has been between $13.16 and $50.73.
- GF Value™ verdict: Current price of $24.29 vs GF Value of $19.59, indicating a 24.0% overvaluation.
- GF Score™ is 48/100, suggesting an average performance across key financial metrics.
- Most notable signal: Insider activity shows that insiders sold $31.9 million worth of shares over the past 12 months, with no insider buying reported.
Is APLD Overvalued or Undervalued?
Applied Digital Corp APLD is currently considered overvalued, with a significant gap between its current price of $24.29 and the GF Value™ estimate of $19.59. The GF Value™ represents GuruFocus' proprietary intrinsic value estimate, derived from historical trading multiples, past business growth, and future performance expectations. This 24.0% overvaluation indicates that the stock might not provide a sufficient margin of safety for potential investors. The GF Valuation label categorizes APLD as "Modestly Overvalued," which aligns with the current market sentiment and price action.
Given that APLD is unprofitable and cash-flow negative, traditional earnings-based valuation models such as Price-to-Earnings (P/E) are not applicable. Instead, a Price-to-Sales (P/S) analysis is more relevant in assessing the company’s valuation. Historically, APLD has traded at a median P/S ratio of approximately 9.6x, suggesting that its current valuation may be unsustainable, especially considering its lack of profitability.
How Does APLD's Valuation Compare to Its History?
| Metric | Current | Historical |
|---|---|---|
| P/E (TTM) | N/A | Median: N/A |
| P/E (Forward) | N/A | Median: N/A |
Due to APLD's unprofitability, there is no available P/E data to compare against its historical values. Therefore, this analysis cannot confirm or contradict the GF Value™ verdict using P/E metrics. This lack of a P/E ratio further reinforces the necessity of using P/S ratios for valuation analysis.
What Does APLD's GF Score™ Tell Us?
The GF Score™ evaluates a company's financial strength, profitability, growth potential, valuation, and momentum. APLD's GF Score™ of 48/100 indicates an average performance across these metrics, with particular weaknesses in profitability and growth. The strongest sub-rank is in momentum, which reflects the stock's recent price performance amidst the broader market trends.
| Metric | Rating |
|---|---|
| GF Score™ | 48 |
| Financial Strength | 3/10 |
| Profitability | 1/10 |
| Growth | 0/10 |
| Valuation | 5/10 |
| Momentum | 8/10 |
APLD’s scores reflect significant concerns regarding its financial strength and profitability, which are critical factors for long-term sustainability. With a Financial Strength rating of 3/10 and a Profitability ranking of just 1/10, these indicate that the company is struggling to maintain a robust financial position. Conversely, the Momentum rank of 8/10 suggests that recent market trends have been favorable, although this may not be sufficient to offset the underlying financial issues.
What Are Gurus and Insiders Doing with APLD?
Currently, six gurus hold positions in APLD, with four increasing their stakes and three trimming their positions in recent quarters. This mixed activity indicates some level of interest from institutional investors, which can be a positive signal. However, the insider activity tells a different story, as insiders have sold $31.9 million worth of shares over the past year without any purchases. This pattern of selling may raise red flags about the company’s future performance and could be interpreted as a lack of confidence from those closest to the business.
What This Means for Investors
Considering the overvaluation indicated by the GF Value™ analysis, alongside the lack of profitability and concerning insider selling trends, APLD appears to be overvalued at its current price of $24.29. While the stock has shown some momentum, the financial fundamentals do not support its current market valuation. For more detailed insights, including further analysis and updates, visit the Applied Digital Corp APLD stock page.
Frequently Asked Questions
What is APLD's GF Score™?
APLD's GF Score™ is 48/100, indicating an average performance across key financial metrics, reflecting both strengths and weaknesses in its financial health and operational performance.
Is APLD overvalued or undervalued?
APLD is currently overvalued according to the GF Value™ estimate, which suggests that the stock is priced higher than its intrinsic value, with a 24.0% overvaluation margin.
What is APLD's P/E ratio?
APLD does not have a current P/E ratio due to its unprofitability, making traditional earnings-based valuation methods inapplicable for this assessment.
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].
