CoreWeave (CRWV) has been on a volatile streak, with the stock climbing 3% in the past day and 15% over the past week, even though it remains well below its highs from earlier this year.
See our latest analysis for CoreWeave.
Zooming out, CoreWeave’s 1 month share price return of negative 15.1% and 3 month share price return of negative 11.9% stand in stark contrast to its triple digit year to date share price return of 120.75%. This suggests powerful long term momentum that has recently cooled as investors reassess growth expectations and risk around the company’s rapid AI infrastructure expansion.
If CoreWeave’s moves have caught your eye, this could be a good moment to see what else is accelerating in AI by exploring high growth tech and AI stocks.
With revenue and earnings still ramping, a near 50% gap to analyst price targets, and intense competition in AI infrastructure, investors now face a key question: Is CoreWeave a mispriced growth story, or has the market already priced in its future?
On a price-to-sales basis, CoreWeave’s last close of $88.30 reflects a rich 10.2x multiple, yet it still screens cheaper than many direct peers.
The price to sales ratio compares the company’s market value to its annual revenue, a useful lens for high growth, loss making infrastructure providers where profits are not yet a reliable guide.
For CoreWeave, that 10.2x multiple looks demanding at first glance, but it is materially lower than both the broader US IT sector and similar AI infrastructure names, suggesting investors are paying up for rapid top line expansion while still applying a discount to the most aggressively priced peers.
Compared with the US IT industry average of 2.5x sales, CoreWeave trades at more than four times the sector norm, underscoring how strongly the market is baking in its growth story yet, against an estimated fair price to sales ratio of 28.6x, the current level could still have room to re rate if forecasts are met.
Explore the SWS fair ratio for CoreWeave
Result: Price-to-Sales of 10.2x (ABOUT RIGHT)
However, CoreWeave still faces execution risk if AI demand normalizes and competitors cut pricing, which could pressure its premium valuation and growth assumptions.
Find out about the key risks to this CoreWeave narrative.
While the sales based multiple hints CoreWeave could re rate higher, our DCF model points the other way, flagging the stock as deeply overvalued versus an estimated fair value near zero. The clash between growth hopes and cash flow reality is stark. Which lens should investors use to interpret the situation?
Look into how the SWS DCF model arrives at its fair value.
CRWV Discounted Cash Flow as at Dec 2025
Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out CoreWeave for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 902 undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match – so you never miss a potential opportunity.
If our take does not fully align with your view, or you would rather dig into the numbers yourself, you can build a tailored narrative in just a few minutes, Do it your way.
A great starting point for your CoreWeave research is our analysis highlighting 2 key rewards and 3 important warning signs that could impact your investment decision.
Before you move on, consider locking in your next smart idea with a focused screener that surfaces high potential opportunities you might otherwise overlook.
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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