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Quantum Computing (QUBT): Revisiting Valuation After a Strong Multi‑Year Run and Recent Pullback

Simply Wall St · 2d ago

Quantum Computing (QUBT) has been on a choppy path, with the stock sliding over the past month even after a strong 1 year run, creating a challenging entry point for investors.

See our latest analysis for Quantum Computing.

The recent pullback, including a 9.51% 30 day share price return and a softer 90 day stretch, contrasts sharply with Quantum Computing’s 61.92% 1 year total shareholder return and exceptional 3 year total shareholder return of 532.51%. This suggests momentum is cooling after a powerful run.

If QUBT’s swings have you rethinking concentration risk, this could be a smart moment to scout high growth tech and AI stocks for other high potential names across the broader tech and AI space.

With the share price now trading well below analyst targets despite explosive multi year returns, investors face a key question: is Quantum Computing still misunderstood and undervalued, or is the market already pricing in its future growth?

Price to Book of 3.3x: Is it justified?

Based on its current price to book ratio of 3.3 times and last close of $12.84, Quantum Computing screens as expensive against peers despite its pullback.

The price to book multiple compares a company’s market value to its net assets, a common yardstick for early stage, asset heavy or pre profit tech names where earnings are not yet a reliable guide.

For Quantum Computing, a 3.3 times price to book suggests investors are assigning a premium to its balance sheet and future potential, even though the company is unprofitable and forecast to remain so over the next three years.

Relative to the broader US tech industry average price to book of 2.4 times, that premium is significant and signals the market is pricing in far stronger growth and execution than the typical peer.

See what the numbers say about this price — find out in our valuation breakdown.

Result: Price to Book of 3.3x (OVERVALUED)

However, persistent losses and a steep valuation multiple mean that any delay in commercial adoption or contract wins could quickly erode recent shareholder gains.

Find out about the key risks to this Quantum Computing narrative.

Build Your Own Quantum Computing Narrative

If you want to dig into the numbers yourself or think the story looks different from this view, you can build your own in minutes, Do it your way.

A great starting point for your Quantum Computing research is our analysis highlighting 1 key reward and 5 important warning signs that could impact your investment decision.

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Before you make your next move on Quantum Computing, lock in a stronger opportunity set by running a quick screen for fresh, data backed ideas today.

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.