Is Cipher Mining, Inc. overvalued or undervalued?

As of 31 October 2024, Cipher Mining, Inc. has moved from a fair to a risky valuation grade. The company appears to be overvalued given its negative financial metrics, including a Price to Book Value of 1.78, an EV to EBIT of -9.33, and an EV to Sales ratio of 8.38. In comparison to peers, Kyndryl Holdings, Inc. has a P/E ratio of 31.33, while Marathon Digital Holdings, Inc. shows a P/E of -14.52, highlighting Cipher's relative weakness in valuation.
Despite its overvaluation, Cipher Mining has demonstrated impressive stock performance, with a year-to-date return of 155.39%, significantly outperforming the S&P 500's 12.22% during the same period. However, the negative return metrics and high valuation ratios suggest caution for potential investors.