Evaluating TeraWulf (WULF) After Strong Recent Share Price Momentum And Premium P/S Multiple

Simply Wall St

Thu, February 26, 2026 at 12:11 PM GMT+9 3 min read

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WULF

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Why TeraWulf is on investors’ radar today

TeraWulf (WULF), a US based bitcoin mining operator, has drawn attention recently as investors reassess its share performance over the past month and past 3 months against its current financial profile.

See our latest analysis for TeraWulf.

With the share price at US$17.92, TeraWulf has posted a 30 day share price return of 29.95% and a 40.66% year to date share price return. Its 1 year total shareholder return is very large, hinting that recent momentum has added to an already strong longer term outcome for investors who have held through the volatility.

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With the share price already up sharply and analysts’ targets sitting higher at about US$23.56, the key question now is whether TeraWulf is still undervalued or if the market is already pricing in future growth.

Most Popular Narrative: 18.9% Undervalued

At a last close of $17.92 against a narrative fair value of $22.10, the most followed view sees meaningful upside, anchored in long term contracted compute capacity.

Long term partnerships and investments from marquee players (Google’s $1.8B lease backstop and equity stake) signal institutional validation, enhance creditworthiness, and are likely to lower WULF’s future cost of capital, directly supporting margin expansion and accelerated infrastructure growth.

Read the complete narrative.

Want to understand why this valuation leans on rapid revenue expansion, margin shift and a rich future earnings multiple usually reserved for mature software names? The underlying narrative leans heavily on aggressive top line growth, a sharp swing into profitability and a premium price tag on those future earnings. Curious which specific revenue, margin and discount rate inputs are carrying most of that fair value heavy lifting? The full narrative lays out the exact assumptions behind that $22.10 figure.

Result: Fair Value of $22.10 (UNDERVALUED)

Have a read of the narrative in full and understand what’s behind the forecasts.

However, this upbeat story could be knocked off course if capital intensive HPC expansion strains the balance sheet, or if long dated Fluidstack contracts underperform expectations.

Find out about the key risks to this TeraWulf narrative.

Another way to look at TeraWulf’s valuation

That 18.9% “undervalued” view leans heavily on future earnings and cash flows, but today the stock trades on a P/S of 44.8x. That is far higher than the US Software industry at 3.4x, the peer average at 16.9x, and even the fair ratio of 12.1x the market could move towards. If sentiment cools, how much room is there for the multiple to compress before the narrative breaks?

Story Continues  

To see what the numbers say about this price, and how that P/S gap ties into the wider picture of risk and opportunity, See what the numbers say about this price — find out in our valuation breakdown.

NasdaqCM:WULF P/S Ratio as at Feb 2026

Next Steps

The mix of optimism and caution around TeraWulf is clear, so it makes sense to move quickly, review the data and build your own stance. To help you weigh both sides of the story, take a close look at the 1 key reward and 2 important warning signs and see how those risks and rewards line up with your expectations.

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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._

Companies discussed in this article include WULF.

Have feedback on this article? Concerned about the content? Get in touch with us directly._ Alternatively, email editorial-team@simplywallst.com_

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