American Bitcoin (ABTC): Reassessing Valuation After a 60% Share Price Slide
American Bitcoin stock moves: recent slide puts valuation back in focus
American Bitcoin (ABTC) has slipped sharply over the past month, with the stock down more than 60% and trailing Bitcoin itself, pushing investors to reassess how much downside may already be priced in.
See our latest analysis for American Bitcoin.
That sharp 30 day share price return of negative 63.89 percent has effectively flipped sentiment on American Bitcoin, with the latest $1.78 share price leaving year to date share price returns deeply negative and momentum clearly fading as investors re price risk and growth expectations.
If this pullback has you reassessing your exposure to crypto related names, it could be a good moment to explore other high growth tech and AI opportunities via high growth tech and AI stocks.
With shares now trading at a steep discount to analyst targets yet still tied to volatile Bitcoin economics, investors face a key question: Is this battered price an early entry point, or a sign markets already see limited future upside?
Price-to-Earnings of 9.9x: Is it justified?
At a last close of $1.78, American Bitcoin trades on a price-to-earnings ratio of 9.9 times, a steep discount to both peers and the broader software sector.
The price to earnings multiple compares what investors pay today for each dollar of current earnings, making it a useful yardstick for profit generating, volatile businesses like Bitcoin infrastructure platforms.
In this case, ABTC appears inexpensive on that metric, with its 9.9 times earnings far below similar companies that trade on an average of 77.1 times, and also well under the wider US software industry average of 32.9 times. This suggests the market is heavily discounting its future earnings power despite strong return on equity.
See what the numbers say about this price — find out in our valuation breakdown.
Result: Price-to-earnings of 9.9x (UNDERVALUED)
However, significant risks remain, including ABTC’s direct dependence on Bitcoin price swings and the potential for further earnings pressure from volatile mining economics.
Find out about the key risks to this American Bitcoin narrative.
Another angle on value
Our DCF model points to a fair value of about $2.96 per share, putting American Bitcoin at roughly a 40% discount to that estimate. If both earnings multiples and cash flow signals appear cheap at the same time, is the market mispricing risk, or is it seeing trouble ahead?
Look into how the SWS DCF model arrives at its fair value.
Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out American Bitcoin 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 907 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.
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