Is Marathon Digital Holdings, Inc. overvalued or undervalued?

As of 29 July 2025, the valuation grade for Marathon Digital Holdings, Inc. moved from risky to attractive, indicating a significant improvement in its perceived value. The company appears to be undervalued, especially when considering its Price to Book Value of 1.49 and an EV to Capital Employed ratio of 1.30, which suggest that the market may not fully recognize its asset value. However, the negative EV to EBITDA of -141.78 and EV to EBIT of -14.19 highlight ongoing operational challenges.
In comparison to its peers, Marathon Digital's valuation ratios are notably lower; for instance, FactSet Research Systems, Inc. has a P/E ratio of 28.40, while Akamai Technologies, Inc. stands at 22.51. This disparity reinforces the notion that Marathon Digital is undervalued relative to its industry. Additionally, over the past year, Marathon Digital has outperformed the S&P 500 with a return of 20.60% compared to the index's 17.14%, further supporting the attractiveness of its current valuation.