* Note: Prices are in Million (M) USD.
Description:
Applied Digital Corporation (APLD) is a leading player in the cryptocurrency mining and co-hosting sector, strategically headquartered in Dallas, Texas. The company harnesses cutting-edge technologies to optimize data center operations, thereby enhancing mining efficiency and scalability. With the rapid expansion of blockchain applications and an increasing shift towards decentralized finance, APLD is well-positioned to leverage these trends, offering institutional investors a distinctive opportunity within the dynamic digital asset market.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $74 M
Debt : $395 M
EBITDA : $-147 M
Net Debt (Debt - Cash): $321 M
Since Ebitda is less than 0, 0 points assigned.
This criteria used industry in which company operates:
Sector: Technology
Industry: Services-computer programming, data processing, etc.
Based on sector, 5 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Message: Cannot calculate PE Ratio since EPS is either 0 or negative.
Using default values for calculation.
Forward PE Ratio (using default values): 20.00
Since Forward PE Ratio is between 20 - 25, 2 points assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Using last 13 overlapping fiscal years (max 20).Average Free Cash Flow: $-83 M
Average Revenue: $33 M
Revenue Converted To Free Cash Flow (%): -249.9%
Since Free Cash Flow (FCF) to Revenue percentage is non-positive, 0 point assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2025-05-31): $216 M
Revenue 5 Years Ago (2020-05-31): $0 M
Total Growth over 5 Years: 0.0%
5-Year Revenue CAGR (Historical): 0.0%
Forward 5-Year CAGR (Tapered): 0.0%
Since historical Revenue CAGR is between 0 - 5, 1 point assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2025-05-31): $201 M
Share Count 5 Years Ago (2021-05-31): $9 M
Company is not buying back its own shares, 0 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $-0.84
Trailing 12-Month Earnings Per Share (EPS): $0.00
Average Earnings Per Share (EPS): $0.00
Dividend Per Share (DPS): $0
Payout Ratio: 0%
Dividend Yield: 0.00%
⚠️ Caution: Negative earnings detected — Further research is recommended - Next Fiscal Yr EPS: $-0.84
Since Dividend Per Share is less than or equal to 0, 0 point assigned.
Since Dividend Yield is less than 1, 0 point assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Using last 10 valid ROE years (max 20).Average ROE: -89.8%
Since Average ROE is non-positive, 0 point assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $32.87
52-Week Low: $3.31
Threshold Price (15% Above 52-Week Low): $3.81
Since Current price is not within 15% threshold, 0 point assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $9,694 M
Since Market Cap is less than 10B, 1 point assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 2% exposure of Total Portfolio.
Warren Buffett's Owners' Earnings:
No positive free cash flow found (TTM or annual) to compute Owners' Earnings per share.
Note: Many fast-growing companies reinvest heavily, so Owners' Earnings may appear low.
Consider other factors in your valuation.
Value-Trade has assigned 9 points to above Applied Digital Corporation (APLD) stock.
Fair Value PE 15, Industry Based PE 20, Risk-Free Anchored PE (25% MoS) 18.2. Based on these 3 values, average assigned is 17.73. The fair value of Applied Digital Corporation (APLD) stock cannot be calculated since EBITDA and EPS are either 0 or negative.
