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Assessing American Bitcoin (ABTC) Valuation After Recent Share Price Volatility

Simply Wall St · 5d ago

Why American Bitcoin is on investors’ radar

American Bitcoin (ABTC) has drawn attention after recent trading, with the share price at US$1.91 and value metrics such as a value score of 4 and an intrinsic discount of 36.0% now in focus.

See our latest analysis for American Bitcoin.

Recent trading has been choppy, with a 12.35% 7 day share price return sitting alongside a 5.45% 30 day decline and a much steeper 70.84% 90 day share price pullback. This suggests momentum has been fading despite the current discount signal.

If Bitcoin exposure is on your mind, this can be a useful moment to broaden your watchlist and check out other high growth tech and AI stocks on Simply Wall St.

With a value score of 4 and an estimated 36.0% intrinsic discount against a recent share price of US$1.91, is American Bitcoin genuinely undervalued at this level, or is the market already pricing in its future growth?

Price-to-Earnings of 10.6x: Is it justified?

On a simple earnings lens, American Bitcoin trades on a P/E of 10.6x, which sits well below peers despite the recent share price volatility.

The P/E ratio compares the company’s share price with its earnings per share, so a lower P/E can indicate that the market is paying less for each dollar of earnings. For a Bitcoin infrastructure and accumulation platform, that can matter a lot, because earnings can move around with Bitcoin related activity and mining economics.

Here, American Bitcoin screens as good value on a P/E basis compared both to its peer average of 34.3x and to the wider US Software industry average of 32.7x. The gap is wide and this points to the market assigning a sizeable discount to these earnings compared with similar software names and closer peers.

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

Result: Price-to-Earnings of 10.6x (UNDERVALUED)

However, you also have to weigh risks such as the recent 70.84% 90-day share price pullback and the annual net income growth figure of 45.79% in the wrong direction.

Find out about the key risks to this American Bitcoin narrative.

Another angle, same signal?

Our DCF model puts American Bitcoin’s fair value at US$2.99 per share versus the current US$1.91, which implies the stock is trading at roughly a 36% discount. That aligns with the low 10.6x P/E, but it also raises a question: are both methods leaning too heavily on forecasts that assume revenue growth can offset forecast earnings declines?

Look into how the SWS DCF model arrives at its fair value.

ABTC Discounted Cash Flow as at Jan 2026
ABTC Discounted Cash Flow as at Jan 2026

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 885 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.

Build Your Own American Bitcoin Narrative

If you see the numbers differently, or simply want to test your own view against the data, you can build a custom thesis in just a few minutes, starting with Do it your way.

A great starting point for your American Bitcoin research is our analysis highlighting 3 key rewards and 4 important warning signs that could impact your investment decision.

Looking for more investment ideas?

If you are weighing up American Bitcoin, it can be smart to widen your search and compare it with other focused ideas that fit your approach.

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.