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If you have ever wondered whether CoreWeave stock is trading at a bargain or carries more risk than reward, you are in exactly the right place.
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CoreWeave’s stock has seen some wild swings recently, dropping 11.7% over the past week and down 44.7% in the last month. However, it is still up an impressive 73.0% year-to-date.
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Fueling this volatility are headlines pointing to rapid expansion in the AI cloud space, along with partnerships with leading tech firms. Investors are closely watching CoreWeave’s aggressive scaling moves and the increasing demand for high-performance computing resources.
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On first pass, our valuation model gives CoreWeave a 4 out of 6 for undervaluation. Numbers alone only go so far, so let us explore common valuation approaches before revealing a better way to judge whether it is truly good value.
The Discounted Cash Flow (DCF) model estimates a company’s intrinsic value by projecting its future cash flows and discounting those amounts back to today’s dollars. This approach aims to measure what the company is truly worth based on its ability to generate cash over time.
For CoreWeave, the most recent trailing twelve-month Free Cash Flow stands at negative $12.0 million, reflecting heavy investment and the volatility of a high-growth tech company in the AI cloud sector. Looking ahead, analysts forecast continued cash flow outflows in the coming years, with projections suggesting negative $16.1 million in 2026 and negative $5.45 million in 2027. The DCF model expects CoreWeave to reach positive Free Cash Flow by 2029 at $2.7 million, with annual growth extrapolated by Simply Wall St for later years.
Applying the DCF analysis, the calculated intrinsic value of CoreWeave stock is $152.77, which is 54.7% higher than its current price. This indicates the stock may be significantly undervalued at present levels.
Result: UNDERVALUED
Our Discounted Cash Flow (DCF) analysis suggests CoreWeave is undervalued by 54.7%. Track this in your watchlist or portfolio, or discover 919 more undervalued stocks based on cash flows.
CRWV Discounted Cash Flow as at Nov 2025
The Price-to-Sales (P/S) ratio is a popular way to assess the value of a company, especially for fast-growing tech firms that may not yet be profitable. This metric helps investors compare a company’s market value to its total sales, offering insight into how highly the market values each dollar of revenue. For growth companies like CoreWeave, this approach is preferred since traditional earnings-based multiples may not give a complete picture due to negative or rapidly changing profits.
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Higher growth expectations and greater perceived risks generally warrant higher or lower P/S ratios, respectively. A fair P/S ratio is influenced not only by the company’s historical performance but also by forecasts for revenue growth, profit margins, and how the company compares to its industry peers.
Currently, CoreWeave trades on a P/S ratio of 8.0x. For context, the IT industry average stands at 2.4x, while direct peers are trading at an average of 19.9x. According to Simply Wall St’s proprietary “Fair Ratio” metric, which considers factors like expected growth, profit margin, market cap, and industry risks, a fair P/S ratio for CoreWeave would be 44.8x. This tailored ratio aims to reflect the company’s unique prospects more accurately than simply comparing it to general industry averages or peers.
Because CoreWeave’s current P/S of 8.0x is far below its fair ratio of 44.8x, the stock appears significantly undervalued relative to its fundamentals and prospects.
Result: UNDERVALUED
NasdaqGS:CRWV PS Ratio as at Nov 2025
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Earlier we mentioned that there is an even better way to understand valuation, so let us introduce you to Narratives. A Narrative is your personalized story about a company, where you can capture your views on its future by setting assumptions for fair value, revenue growth, profit margins, and more. Rather than just crunching numbers, Narratives connect what is happening in a company’s world to a financial forecast and ultimately derive a fair value estimate.
Narratives are easy to create and use, and are available to millions of investors on Simply Wall St’s Community page. They help you make smarter decisions about when to buy or sell by comparing your Narrative-based fair value to CoreWeave’s current stock price. What makes Narratives powerful is that they update dynamically whenever new information, such as news or earnings reports, comes in, so your view stays current with the market.
For example, CoreWeave’s Narratives in the Community show a wide range of perspectives. Some investors see the company’s fair value nearly double today’s price, while others are much more conservative, reflecting their unique forecasts and assumptions.
Do you think there’s more to the story for CoreWeave? Head over to our Community to see what others are saying!
NasdaqGS:CRWV Community Fair Values as at Nov 2025
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include CRWV.
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