Is Cipher Mining, Inc. overvalued or undervalued?

As of 31 October 2024, the valuation grade for Cipher Mining, Inc. has moved from expensive to risky, indicating a significant shift in its perceived value. The company is currently assessed as overvalued. Key ratios highlight this concern, including a Price to Book Value of 1.78, an EV to EBIT of -9.33, and a ROCE of -19.46%.
In comparison to its peers, Cipher Mining's P/E ratio is notably negative at -13.95, while AvePoint, Inc. shows a P/E of 265.46 and Sterling Check Corp. has a P/E of 48.01, both indicating a stark contrast in valuation metrics. The company's recent performance has also lagged behind the S&P 500, with a year-to-date return of -23.92% compared to the index's 2.44%. Overall, these factors suggest that Cipher Mining, Inc. is not only overvalued but also faces significant challenges in its financial performance relative to its peers.