* Note: Prices are in Million (M) USD.
Description:
Riot Blockchain, Inc. is a prominent player in the North American cryptocurrency mining sector, specializing in the production of Bitcoin through a scalable and efficient mining operation. Headquartered in Castle Rock, Colorado, Riot aims to drive the adoption and growth of digital currencies, leveraging cutting-edge technology and strategic investments in energy infrastructure. The company's robust operational capacity positions it as a significant contributor to the cryptocurrency ecosystem, making it a compelling investment opportunity for institutional investors seeking exposure to the burgeoning digital asset landscape.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Note: Financial institutions (banks/insurers/brokers/REITs) are evaluated using sector, P/E, growth, ROE and other factors. The 3.5× Net Debt/EBITDA rule is skipped to avoid misleading signals; however, Cash/Debt/EBITDA are still displayed and counted for scoring.
Cash : $331 M
Debt : $259 M
EBITDA : $684 M
Since Cash is greater than Total Debt, 5 points assigned.
This criteria used industry in which company operates:
Sector: Financial services
Industry: Capital markets
Based on industry, 3 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 39.85
Since Forward PE Ratio is greater than 35, 0 point assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Using last 20 overlapping fiscal years (max 20).Average Free Cash Flow: $-149 M
Average Revenue: $58 M
Revenue Converted To Free Cash Flow (%): -257.0%
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 (2024-12-31): $377 M
Revenue 5 Years Ago (2019-12-31): $7 M
Total Growth over 5 Years: 5,409.1%
5-Year Revenue CAGR (Historical): 123.0%
Forward 5-Year CAGR (Tapered): 61.5%
Since historical Revenue CAGR is greater than 20, 5 points assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2024-12-31): $319 M
Share Count 5 Years Ago (2020-12-31): $42 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): $-0.61
Trailing 12-Month Earnings Per Share (EPS): $0.52
Average Earnings Per Share (EPS): $0.52
Dividend Per Share (DPS): $0
Payout Ratio: 0%
Dividend Yield: 0.00%
⚠️ Caution: Negative earnings detected — Further research is recommended - Next Fiscal Yr EPS: $-0.61
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 20 valid ROE years (max 20).Average ROE: -110.9%
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: $20.72
52-Week Low: $6.19
Threshold Price (15% Above 52-Week Low): $7.12
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: $7,354 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 14 points to above Riot Blockchain Inc (RIOT) stock.
Heads up: One or more P/E inputs look exaggerated and may skew the blend.
• Growth Based PE
50.00 (>2× median)
Further research is recommended; please use your own due diligence.In such cases, multiplying earnings by the long-run average P/E typically gives a closer, more reliable fair value.
Rule of thumb: Last 1 Years Avg P/E (34.03)
× EPS ($0.52) = $17.70.
Last 1 Years Avg PE
34.03, Fair Value PE
12, Industry Based PE
15, Growth Based PE
50, Risk-Free Anchored PE (25% MoS)
18.47. Based on these 5 values, average assigned is
25.90. Value-Trades has assined P/E value
25.90. An average (Current Year EPS + Next Year EPS) earning per share is
$0.52.
Note: Final fair value is the lesser of the blended PE-based fair value and the simple average PE × EPS fair value.Fair value using multiple P/Es (blended): $13.47 (PE 25.90 × EPS $0.52)
Fair value using simple average PE × EPS: $17.70 (PE 34.03 × EPS $0.52)
Lesser of these two: $13.47
So the Final Fair Value is: $13.47
Understanding the Value-Trades P/E Blend (click to expand)
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What goes into the blended P/E?
- 20-Year Avg P/E — Long-run market baseline; conservative anchor.
- Fair Value P/E — Score-based (cash, debt, sector, etc.).
- Industry P/E — Peer group norm.
- Growth-Based P/E — Uses tapered growth rates, floored at 15.
- RCFC-Based P/E — Maps cash conversion efficiency.
- ROE-Based P/E — Higher ROE supports higher multiples.
- Risk-Free Anchored P/E — Macro floor tied to 10y yield w/ MoS.
How it works
- Extreme values are clamped/filtered (IQR method).
- Anchors (20y avg, RCFC/ROE, risk-free) are always kept if valid.
- Final fair value = min(Blended PE × EPS, Avg PE × EPS).
P/E Reference Summary
Using EPS: $0.52
| Source |
P/E Ratio |
Implied Fair Value |
| Market (1 Yr Ago) | 34.03 | $17.70 |
| 1 Yrs Avg-PE | 34.03 | $17.70 |
| Value-Trades Assigned | 25.9 | $13.47 |
Note: Only 1 years of reliable P/E data available. Fair value is calculated using blended models to reduce bias.
Financials mode
3.5× Net Debt/EBITDA penalty is disabled; Cash/Debt/EBITDA are shown and counted.
