On August 13, 2026, Core Scientific Inc CORZ shares fell 5.2% to $19.78, continuing a downward trend that has seen the stock decline 12.9% over the past month. The stock has fluctuated between a 52-week high of $30.46 and a low of $13.14.
- GF Valueā¢ verdict: Current price at $19.78 vs GF Value of $11.17, indicating a 77.1% overvaluation.
- GF Scoreā¢: 41/100, indicating an average performance across various metrics.
- Most notable signal: Insiders sold $3.2M worth of shares in the last three months without any buying.
Is CORZ Overvalued or Undervalued?
Core Scientific Inc CORZ is currently assessed as significantly overvalued, with a GF Valueā¢ estimate of $11.17 compared to its market price of $19.78. This suggests a substantial margin of safety is absent, as the current price is significantly above the intrinsic value. The GF Valueā¢ is derived from a combination of historical trading multiples, past business growth, and future performance estimates, intended to provide a directional warning regarding where the stock may be headed based on its fundamentals.
The GF Valuation label indicates that CORZ is significantly overvalued, which raises concerns for potential investors. With the stock price being 77.1% higher than the GF Valueā¢, the risk of correction looms large, particularly for a company that is unprofitable and cash-flow negative. Such a situation could lead to increased volatility in the stock price, especially if market conditions change or if the company's performance does not improve.
How Does CORZ's Valuation Compare to Its History?
| Metric | Current | Historical |
|---|---|---|
| P/E (TTM) | Not available | 26.4x (5-Year Median) |
| Forward P/E | 934.6x | Not applicable |
Since the current P/E is not applicable given the unprofitability of CORZ, we cannot draw a direct P/E comparison. However, the forward P/E of 934.6x indicates that the stock is trading at an extraordinarily high multiple compared to its historical median of 26.4x, which further aligns with the GF Valueā¢ verdict of being significantly overvalued. This disparity suggests that traditional earnings-based valuation metrics do not apply to CORZ under its current financial conditions.
What Does CORZ's GF Scoreā¢ Tell Us?
The GF Scoreā¢ assesses a stock's performance based on various factors, including financial strength, profitability, growth, valuation, and momentum. Core Scientific's GF Scoreā¢ of 41/100 indicates that the company has an average performance overall. However, it highlights areas of concern, particularly in financial strength and valuation.
| Metric | Rating |
|---|---|
| GF Scoreā¢ | 41 |
| Financial Strength | 2/10 |
| Profitability | 4/10 |
| Growth | 9/10 |
| Valuation | 1/10 |
| Momentum | 0/10 |
The analysis of the GF Scoreā¢ reveals that Core Scientific excels in growth (9/10) but struggles significantly in financial strength (2/10) and valuation (1/10). The low financial strength score indicates potential vulnerabilities in the company's financial health, while the poor valuation score reinforces the notion that CORZ is currently overvalued in the market. This combination suggests caution for potential investors.
What Are Gurus and Insiders Doing with CORZ?
Currently, eight gurus hold positions in Core Scientific Inc CORZ, with four increasing their stakes and four trimming their holdings in recent quarters. This mixed signal from gurus suggests a lack of consensus on the stock's future prospects. In addition, insider activity has shown a clear trend of selling, with insiders offloading $3.2 million worth of shares in the last three months without any buying activity. This pattern may indicate a lack of confidence from those closest to the company, which could further influence external investor sentiment.
The dual signals of mixed guru activity and significant insider selling could be interpreted as red flags. While some gurus are still optimistic enough to add to their positions, the insider selling raises concerns about the company's short-term outlook and the confidence its executives have in the future performance of the stock.
What This Means for Investors
Based on the GF Valueā¢ assessment, Core Scientific Inc CORZ is currently overvalued, trading significantly above its intrinsic value. This overvaluation, combined with the company's poor financial strength and the concerning insider selling, suggests that investors should exercise caution. The growth potential indicated by the GF Scoreā¢ offers some hope, but the overall financial metrics and market behavior present a risk-laden scenario for potential investment.
For more detailed information, you can visit the Core Scientific Inc CORZ stock page, along with the GF Valueā¢ page or the GuruFocus Stock Screener.
Frequently Asked Questions
What is CORZ's GF Scoreā¢?
Core Scientific Inc holds a GF Scoreā¢ of 41/100, indicating average performance across various metrics.
Is CORZ overvalued or undervalued?
According to the GF Valueā¢, CORZ is significantly overvalued, trading at 77.1% above its estimated intrinsic value.
What is CORZ's P/E ratio?
Core Scientific does not have a P/E ratio available due to its unprofitability, while the forward P/E is an extraordinarily high 934.6x compared to a historical median of 26.4x.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
