Assessing TechCreate Group (TCGL) Valuation After A Speculative Meme Style Post IPO Surge
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TechCreate Group (NYSEAM:TCGL) is back in focus after its stock surged sharply following a quiet IPO, with trading activity that resembles recent meme style moves driven by speculative interest from retail investors.
See our latest analysis for TechCreate Group.
The latest move capped a very sharp run, with the 1 day share price return at about 100%, the 7 day share price return already extremely high, and the year to date share price return above 30x. This suggests momentum has been building quickly as traders reassess short term upside and risk.
If this kind of sudden spike has you looking around the rest of the market, it could be a good moment to size up other high growth tech and AI stocks that are catching attention for different reasons.
With TechCreate now at around $172.84 after a meme style surge and no new business updates from the company, the key question for you is simple: is there still mispricing here, or is the market already banking on future growth?
Based on the preferred multiple, TechCreate Group looks very expensive, with a P/B of 5,141.5x at the last close of $172.84 compared with sector peers.
The P/B ratio compares the company’s market value to its book value, so a figure of 5,141.5x suggests investors are paying far more than the accounting value of net assets.
For a young, unprofitable software and services company with limited reported revenue, such a high P/B typically implies the market is pricing in very optimistic expectations around future growth and profitability, rather than current balance sheet strength.
The contrast with the US IT industry average P/B of 3.1x, and a peer average of 3.4x, is stark. This points to a valuation that is many multiples above what similar companies trade at.
See what the numbers say about this price — find out in our valuation breakdown.
Result: Price-to-book of 5,141.5x (OVERVALUED)
However, there are clear risks here, including reliance on speculative trading at very high P/B levels, as well as a business that is currently loss making on modest reported revenue.
Find out about the key risks to this TechCreate Group narrative.
Our DCF model presents a similar picture to the sky high P/B. At $172.84, TechCreate Group trades well above our estimate of future cash flow value at $2.94, which suggests the shares are priced very richly. The key question is whether you think the underlying story justifies that gap.
