Is Iris Energy Ltd. overvalued or undervalued?
As of May 11, 2022, Iris Energy Ltd. is considered risky and overvalued with a Price to Book Value of 1.65 and an EV to EBITDA of 17.16, despite outperforming the S&P 500 in the past month.
As of 11 May 2022, the valuation grade for Iris Energy Ltd. moved from does not qualify to risky. The company is currently overvalued based on its financial metrics. Key ratios include a Price to Book Value of 1.65, an EV to EBITDA of 17.16, and a ROCE of -1.50%. In comparison to its peers, Iris Energy Ltd. has a significantly higher EV to EBITDA ratio than Bitdeer Technologies Group at -25.68 and TeraWulf, Inc. at -33.35, indicating a premium valuation despite its loss-making status. Additionally, the company's stock has outperformed the S&P 500 over the past month, returning 16.89% compared to the index's 3.83%, which may suggest a temporary market enthusiasm that does not align with its underlying financial health.
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