On August 13, 2026, Riot Platforms Inc RIOT shares fell 5.5% to a current price of $19.21. Over the past year, the stock has traded within a range of $11.16 to $30.32, reflecting significant volatility. Despite today's decline, RIOT has experienced a year-to-date increase of 51.6% and a remarkable 65.8% increase over the past year.
- GF Valueâ„¢ verdict: Current price is $19.21 compared to GF Value of $14.32, indicating a 34.1% overvaluation.
- GF Scoreâ„¢: RIOT has a score of 74/100, suggesting it is above average.
- Most notable signal: Insiders sold $5.1M worth of shares in the last three months, with no buying activity reported.
Is RIOT Overvalued or Undervalued?
Riot Platforms Inc is currently trading at $19.21, which is significantly above its GF Valueâ„¢ estimate of $14.32. This valuation suggests that the stock is 34.1% overvalued. GF Valueâ„¢ is GuruFocus' proprietary intrinsic value estimate that considers historical trading multiples, past business growth, and future performance projections. Given the company's unprofitability and cash-flow negative status, relying on earnings-based metrics such as the Price-to-Earnings (P/E) ratio is not advisable. Instead, a Price-to-Sales (P/S) analysis is more relevant. Historically, RIOT has traded at a median P/S ratio of approximately 8.8x, which further emphasizes the current overvaluation.
The GF Valuation label indicates that the stock is significantly overvalued, highlighting potential risks for current and prospective shareholders. Investors should exercise caution, as the steep premium over the GF Valueâ„¢ estimate suggests that market expectations may not be met in the near term.
How Does RIOT's Valuation Compare to Its History?
| Metric | Current | Historical |
|---|---|---|
| P/E (TTM) | 491.9x | 48.0x |
Currently, RIOT's P/E ratio stands at 491.9x, which is substantially above its 5-year median P/E of 48.0x. This suggests that the stock is trading at a significantly higher valuation than its historical level. The P/E analysis aligns with the GF Valueâ„¢ verdict, reinforcing the conclusion that RIOT is overvalued at its current price.
What Does RIOT's GF Scoreâ„¢ Tell Us?
The GF Scoreâ„¢ is a composite score that assesses a company's financial performance across various factors, including financial strength, profitability, growth potential, valuation, and momentum. RIOT's score of 74/100 indicates it is positioned above average in these respects, though there are notable strengths and weaknesses.
| Metric | Rating |
|---|---|
| GF Scoreâ„¢ | 74/100 |
| Financial Strength | 5/10 |
| Profitability | 3/10 |
| Growth | 8/10 |
| Valuation | 5/10 |
| Momentum | 10/10 |
RIOT's strongest area is its momentum rank, scoring a perfect 10/10, indicating significant positive price movements in the recent past. Conversely, the profitability rank is a weak point at 3/10, reflecting the company's challenges in generating consistent earnings. Overall, while RIOT demonstrates robust growth prospects and strong momentum, its financial strength and profitability remain concerning for potential stakeholders.
What Are Gurus and Insiders Doing with RIOT?
Currently, three gurus hold positions in Riot Platforms Inc, with one adding to their stake and six trimming their positions in recent quarters. This mixed activity among gurus indicates a cautious outlook on the stock. Additionally, insider activity has seen a notable trend, with insiders selling $5.1 million in shares over the past three months without any buying activity. This pattern of selling by insiders could signal a lack of confidence in the company's near-term performance, which investors should consider carefully.
What This Means for Investors
Based on the analysis of RIOT's current valuation and the GF Valueâ„¢ assessment, the stock appears to be overvalued at its current price of $19.21. The significant premium over GF Valueâ„¢ suggests that investors may be paying too much relative to the company's intrinsic worth. Caution is advised, especially given the recent insider selling and the high P/E ratio compared to historical norms. For further insights and detailed analysis, visit the Riot Platforms Inc RIOT stock page and explore related metrics.
Frequently Asked Questions
What is RIOT's GF Scoreâ„¢?
RIOT has a GF Scoreâ„¢ of 74/100, which indicates that the company is performing above average relative to its peers.
Is RIOT overvalued or undervalued?
RIOT is currently overvalued, with a GF Valueâ„¢ estimate of $14.32 compared to its current price of $19.21.
What is RIOT's P/E ratio?
RIOT's P/E ratio is 491.9x, significantly higher than its 5-year median P/E of 48.0x, suggesting the stock is trading at an inflated 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].
