On August 12, 2026, Core Scientific Inc CORZ shares rose by 5.6%, closing at $20.87. This movement comes amidst a 52-week range that saw highs of $30.46 and lows of $13.14.
- GF Valueâ„¢ verdict: Current price of $20.87 vs GF Value of $11.00, indicating the stock is 89.7% overvalued.
- GF Scoreâ„¢: 40/100, which suggests average performance relative to the market.
- Most notable signal: Insiders sold $3.0 million in the last 3 months with no buying activity.
Is CORZ Overvalued or Undervalued?
The current share price of Core Scientific Inc CORZ at $20.87 significantly exceeds the GF Valueâ„¢ estimate of $11.00, suggesting that the stock is substantially overvalued by 89.7%. GF Valueâ„¢ is GuruFocus's proprietary estimate of intrinsic value based on historical trading multiples, past business growth, and future performance expectations. With the GF Valuation label indicating that it is "Significantly Overvalued," this poses a risk to potential investors, as the stock may not sustain its current price level amidst these valuations.
Given that Core Scientific is unprofitable and cash-flow negative, traditional earnings-based metrics such as Price-to-Earnings (P/E) may not provide a reliable foundation for valuation. Instead, focusing on Price-to-Sales (P/S) is more appropriate in this context. The historical median P/S ratio for Core Scientific is approximately 7.3x, and with the current valuation, the stock presents a considerable risk of adjustment.
How Does CORZ's Valuation Compare to Its History?
| Metric | Current | Historical |
|---|---|---|
| P/E (TTM) | 986.1x | 26.4x |
With a current P/E of 986.1x, Core Scientific's valuation is dramatically higher than its 5-year median P/E of 26.4x. This stark difference indicates that the stock is trading well above its historical valuation levels, further supporting the conclusion that CORZ is overvalued according to the GF Valueâ„¢ verdict.
What Does CORZ's GF Scoreâ„¢ Tell Us?
The GF Scoreâ„¢ assesses a company's financial strength, profitability, growth potential, valuation, and momentum. Core Scientific has a GF Scoreâ„¢ of 40/100, indicating average performance overall. The strongest sub-rank is in the growth category with a score of 9/10, while the weakest is in valuation, which is rated at 1/10.
| Metric | Rating |
|---|---|
| GF Scoreâ„¢ | 40 |
| Financial Strength | 2/10 |
| Profitability | 4/10 |
| Growth | 9/10 |
| Valuation | 1/10 |
| Momentum | 0/10 |
The sub-ranks highlight that while Core Scientific shows strong growth potential, its financial strength and valuation concerns raise significant red flags. The lack of momentum, indicated by a 0/10 rank, further complicates an already challenging investment picture.
What Are Gurus and Insiders Doing with CORZ?
Currently, 8 gurus hold shares of Core Scientific, with 4 increasing their positions and 4 reducing their stakes in recent quarters. This mixed activity suggests a divided sentiment among experienced investors regarding the company's future prospects.
Additionally, insider activity reflects a concerning trend, with insiders having sold $3.0 million worth of shares over the past three months without any buying activity. This pattern may indicate a lack of confidence from those closest to the company, which could serve as a warning signal for potential investors.
What This Means for Investors
Based on the analysis, Core Scientific Inc CORZ appears to be significantly overvalued according to GF Valueâ„¢. The considerable gap between the current price and intrinsic value estimates, coupled with weak financial signals and negative insider activity, suggests that caution is warranted for those considering an investment in CORZ.
For a deeper exploration of Core Scientific Inc CORZ, visit the Core Scientific Inc (CORZ) stock page to access further details and insights.
Frequently Asked Questions
What is CORZ's GF Scoreâ„¢?
Core Scientific has a GF Scoreâ„¢ of 40/100, indicating average performance relative to the market.
Is CORZ overvalued or undervalued?
According to GF Valueâ„¢, CORZ is significantly overvalued with a current price of $20.87 compared to a fair value estimate of $11.00.
What is CORZ's P/E ratio?
Core Scientific's current P/E ratio is 986.1x, which is substantially higher than its 5-year median P/E of 26.4x, indicating a significant overvaluation.
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].
