On September 03, 2026, Applied Digital Corp APLD shares rose 4.0% to a current price of $25.91, showing a significant increase over the past year but still down from its 52-week high of $50.73. The stock has experienced volatility, with a 52-week low of $13.16.
- GF Valueâ„¢ verdict: Current price of $25.91 vs GF Value of $19.56 indicates a 32.5% overvaluation.
- GF Scoreâ„¢: 48/100, suggesting an average overall performance.
- Notable signal: Insiders sold $31.9M worth of stock over the past 12 months without any buying activity.
Is APLD Overvalued or Undervalued?
The current valuation of Applied Digital Corp APLD suggests that the stock is overvalued. With a GF Valueâ„¢ estimate at $19.56, the stock is trading at a significant premium, reflecting a 32.5% overvaluation. GF Valueâ„¢ is GuruFocus' proprietary estimate of intrinsic value that considers historical trading multiples, past growth, and future performance estimates. In this case, the market price far exceeds the value derived from these factors, indicating a lack of margin of safety for potential investors.
The GF Valuation label classifies APLD as "Significantly Overvalued," highlighting the risks associated with investing at this price level. The high price could lead to potential losses if the company fails to meet market expectations or if market conditions change. As APLD is currently unprofitable and cash-flow negative, traditional earnings-based valuation methods such as P/E ratios are not applicable, making the price-to-sales (P/S) ratio a more relevant metric for analysis.
How Does APLD's Valuation Compare to Its History?
As APLD is unprofitable, a traditional P/E ratio cannot be computed accurately. Therefore, it is more insightful to analyze the stock's historical price-to-sales (P/S) ratio. The company's historical median P/S ratio is approximately 9.6x, and with its current valuation, APLD may be seen as trading above its historical norms. This suggests that the current market optimism is not aligned with its historical performance metrics.
What Does APLD's GF Scoreâ„¢ Tell Us?
GF Scoreâ„¢ assesses a company's overall performance based on several key factors, including financial strength, profitability, growth, valuation, and momentum. APLD's current GF Scoreâ„¢ of 48/100 reflects an average performance across these metrics.
| Metric | Rating |
|---|---|
| GF Scoreâ„¢ | 48 |
| Financial Strength | 3/10 |
| Profitability | 1/10 |
| Growth | 0/10 |
| Valuation | 5/10 |
| Momentum | 8/10 |
The scores reveal that APLD struggles significantly in financial strength, profitability, and growth, with ratings of 3/10, 1/10, and 0/10, respectively. However, the company does have a decent momentum rank of 8/10, indicating recent positive price movements. Overall, the weaker areas suggest that there may be inherent risks in investing in APLD without a strong financial backing or consistent profitability.
What Are Gurus and Insiders Doing with APLD?
Currently, there are six gurus holding APLD stock, with four increasing their positions and three trimming their holdings in recent quarters. This activity indicates a mixed sentiment among institutional investors, which is noteworthy for potential shareholders. Furthermore, insider activity shows that insiders sold $31.9 million worth of shares over the past year, with no buying activity, signaling a lack of confidence from those closest to the company.
This pattern of insider selling coupled with the mixed guru sentiment may suggest caution for investors. The absence of insider buying raises questions about the company's future performance and potential growth trajectory, which may be further compounded by the current overvaluation indicated by the GF Valueâ„¢ analysis.
What This Means for Investors
The analysis indicates that Applied Digital Corp APLD is currently overvalued based on the GF Valueâ„¢ assessment. Investors should proceed with caution, considering the significant premium over the estimated intrinsic value and the concerning signals from insider activities. The volatility in its stock price, combined with a lack of profitability and weak financial metrics, further reinforces the cautionary stance.
For more detailed insights, you can visit the Applied Digital Corp APLD stock page and explore additional resources such as the GF Valueâ„¢ page or the GuruFocus Stock Screener.
Frequently Asked Questions
What is APLD's GF Scoreâ„¢?
APLD's GF Scoreâ„¢ is 48/100, indicating an average overall performance across various financial metrics.
Is APLD overvalued or undervalued?
APLD is currently overvalued, with a GF Valueâ„¢ of $19.56 compared to its market price of $25.91.
What is APLD's P/E ratio?
APLD does not have an applicable P/E ratio due to its unprofitable status, making traditional earnings valuation methods irrelevant.
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].
