On September 02, 2026, Core Scientific Inc CORZ shares rose by 4.6%, closing at $16.81. This movement comes amid a 52-week range of $13.14 to $30.46, indicating significant volatility in the stock's price performance.
- GF Valueâ„¢ verdict: current price $16.81 vs GF Value of $11.74 (43.2% overvalued)
- GF Scoreâ„¢: 50/100, indicating an average rating
- Most notable signal: Insider activity shows a net selling of $4.5M over the past 12 months
Is CORZ Overvalued or Undervalued?
Core Scientific Inc is currently considered significantly overvalued based on its GF Valueâ„¢ of $11.74, which suggests a 43.2% downside from the current price of $16.81. The GF Valueâ„¢ is a proprietary intrinsic-value estimate from GuruFocus, derived from historical trading multiples, past business growth, and future performance estimates. Given that CORZ is an unprofitable and cash-flow-negative company, the traditional earnings-based valuation methods such as P/E ratios may not be applicable here. Instead, a Price-to-Sales (P/S) analysis could provide a more relevant perspective.
The stock is trading above its historical norms, indicating that investors are pricing in future growth that has yet to materialize. This presents a risk for potential investors: if the anticipated growth does not occur, the stock could face a significant correction. Therefore, while the GF Valueâ„¢ serves as a directional warning about the stock's valuation, it should not be interpreted as a precise fair-value target in the context of Core Scientific's current financial situation.
How Does CORZ's Valuation Compare to Its History?
| Metric | Current | Historical |
|---|---|---|
| P/E (TTM) | 63.2x | 26.4x |
With a current forward P/E ratio of 63.2x, Core Scientific is trading significantly above its 5-year median P/E of 26.4x. This disparity aligns with the GF Valueâ„¢ verdict of being overvalued, reinforcing the notion that the stock's current price does not reflect its historical valuation levels.
What Does CORZ's GF Scoreâ„¢ Tell Us?
The GF Scoreâ„¢ assesses the overall quality of a stock based on various key metrics including financial strength, profitability, growth, valuation, and momentum. For Core Scientific, the GF Scoreâ„¢ stands at 50/100, reflecting an average quality rating.
| Metric | Rating |
|---|---|
| GF Scoreâ„¢ | 50 |
| Financial Strength | 2/10 |
| Profitability | 4/10 |
| Growth | 9/10 |
| Valuation | 5/10 |
| Momentum | 0/10 |
Core Scientific's strongest area is its growth rank of 9/10, indicating potential for future expansion. However, it faces significant challenges in financial strength, with a rating of just 2/10, and momentum, which is at 0/10. This suggests that while there may be growth opportunities, the current financial instability could pose risks to investors.
What Are Gurus and Insiders Doing with CORZ?
Currently, 8 gurus hold shares of Core Scientific Inc, with 5 adding to their positions while 5 have trimmed their holdings in recent quarters. This mixed activity among gurus signifies a lack of consensus on the stock's future performance.
Furthermore, insider activity has shown a net selling of $4.5M over the past 12 months, with insiders purchasing $0.5M while selling $4.9M worth of shares. This trend of net selling may signal a lack of confidence from insiders regarding the company's short-term prospects, which is a critical factor for prospective investors to consider.
What This Means for Investors
Based on the analysis of the GF Valueâ„¢, Core Scientific Inc appears to be overvalued at its current price of $16.81. The significant discrepancy between the market price and the GF Valueâ„¢ of $11.74 highlights potential risks for investors, particularly given the company's unprofitability and cash-flow issues. While there may be growth potential, the current valuation does not provide a margin of safety for new investments. For a deeper dive into Core Scientific's financials, visit the Core Scientific Inc CORZ stock page, and consider exploring the GF Valueâ„¢ page for further insights.
Frequently Asked Questions
What is CORZ's GF Scoreâ„¢?
The GF Scoreâ„¢ for Core Scientific is 50/100, indicating an average quality rating based on various metrics.
Is CORZ overvalued or undervalued?
CORZ is considered overvalued, with a current price of $16.81 compared to a GF Valueâ„¢ of $11.74, suggesting a significant downside risk.
What is CORZ's P/E ratio?
The current forward P/E ratio for CORZ is 63.2x, which is considerably higher than its 5-year median P/E of 26.4x, indicating that the stock is trading at a premium compared to its historical valuation.
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].
