Valuation Check After Record Bitcoin Output, Paraguay Expansion and New Colombian Listing
HIVE Digital Technologies (TSXV:HIVE) just hit a key inflection point, combining record November Bitcoin output with a fresh Colombian Stock Exchange listing and rapid Paraguay expansion. As a result, the stock now reflects a bigger infrastructure story.
See our latest analysis for HIVE Digital Technologies.
Even with these operational wins, the 1 year total shareholder return of negative 26.1 percent and a 3 year total shareholder return still up over 55 percent show a name where long term believers remain ahead despite recent weak share price momentum.
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With Bitcoin output surging, AI infrastructure ramping up, and the share price still trailing its gains over the past three years, is HIVE quietly undervalued at this level, or are markets already pricing in the next leg of growth?
On a last close of CA$3.68, HIVE trades at a price-to-earnings ratio of 18.5 times, which looks modest beside far richer peer valuations.
The price-to-earnings ratio compares what investors pay per share to the company’s earnings per share and is a core gauge for profitable, cash generative software and infrastructure operators like HIVE. A lower multiple can signal either overlooked earnings power or doubts about how durable those earnings will be as market cycles and business models evolve.
Here, the market is assigning HIVE a price-to-earnings multiple of 18.5 times, comfortably below both the peer group average of 41.5 times and the broader Canadian Software industry average of 49.2 times, yet above the estimated fair price-to-earnings ratio of 5.7 times. That gap suggests investors are paying more than our fair ratio model implies, but still far less than what many comparable software names command, highlighting a tension between cautious fundamentals and relatively cheap positioning against peers.
Explore the SWS fair ratio for HIVE Digital Technologies
Result: Price-to-Earnings of 18.5x (ABOUT RIGHT)
However, downside risks remain, including sharp Bitcoin price weakness and further earnings volatility, which could compress HIVE’s multiple and undermine the undervaluation narrative.
Find out about the key risks to this HIVE Digital Technologies narrative.
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