Cipher Mining (CIFR) has quietly turned into one of the stronger performers in crypto infrastructure, with the stock climbing sharply this year as investors reassess its data center scale and exposure to Bitcoin economics.
See our latest analysis for Cipher Mining.
The latest leg higher to a share price of $18.88 caps a powerful run, with a roughly 74% 3 month share price return and a near threefold year to date share price gain signaling strong, still building momentum. The 1 year total shareholder return of about 191% and exceptional 3 year total shareholder return above 2,600% show how sharply sentiment around its Bitcoin linked growth story has shifted.
If Cipher’s surge has you rethinking where growth could come from next, this is also a good moment to explore fast growing stocks with high insider ownership.
With shares near 19 dollars but still trading at a sizable discount to analyst targets, investors now face a tougher question: Is Cipher Mining still an underappreciated growth story, or is the market already pricing in its next chapter?
Price-to-Sales of 36.1x: Is it justified?
On a last close of 18.88 dollars, Cipher Mining trades on a price to sales ratio that signals a rich valuation against both peers and a fair value benchmark.
The price to sales ratio compares a company’s market value to its revenue, a common yardstick for high growth or still unprofitable names where earnings are not yet a reliable guide. For Cipher Mining, this metric does a lot of the heavy lifting, because the business is currently loss making but scaling revenue quickly as it expands industrial scale data centers tied to Bitcoin economics.
At 36.1 times sales, investors are effectively paying several times more per dollar of current revenue than both the wider US software space and the level our models estimate as a fair price to sales ratio for Cipher. That suggests the market is already factoring in strong future revenue growth and a path toward profitability, which may leave less room for disappointment if forecasts around Bitcoin sensitive cash flows or data center utilization rates change.
The comparison is stark. The current 36.1 times price to sales multiple stands well above the US software industry average of 5.1 times and is more than quadruple the estimated fair ratio of 8.4 times. Gaps of this size can narrow over time as fundamentals evolve or as valuation cools.
Explore the SWS fair ratio for Cipher Mining
Result: Price-to-Sales of 36.1x (OVERVALUED)
However, that optimism could quickly be challenged by a prolonged Bitcoin downturn or execution missteps that delay Cipher’s path to sustainable profitability.
Find out about the key risks to this Cipher Mining narrative.
Build Your Own Cipher Mining Narrative
If you see the story differently or simply prefer to dig into the numbers yourself, you can build a custom view in just minutes: Do it your way.
A great starting point for your Cipher Mining research is our analysis highlighting 1 key reward and 2 important warning signs that could impact your investment decision.
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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.
