As reflected at the current price of $17, what future Riot Platforms operating performance is the market anticipating? To achieve average annual stock market performance of 9.0% over the next 6 years, Riot Platforms shares will need to reach $29. To achieve Upper quartile performance, Riot Platforms’ stock price will need to reach $34 by 2028.
Executive Summary
- Price Target Research identifies Riot Platforms as having: high expected growth, high profitability, stability, and below average financial strength. A big positive influence on Riot Platforms’ valuation is its superior Growth.
- Very high valuation, leading shareholder returns. Current valuation levels are very high relative to the Riot Platforms Peer Group. Recent market returns have significantly outperformed the Riot Platforms Peer Group. Total shareholder returns expected to significantly lag the overall equity market. Based on current investor expectations, Riot Platforms shares should reach a level of $-140 by 2028 — an -1000% per year total shareholder return. A 2028 stock price of $29 would reflect median performance and a price of $34 would be required to reach upper quartile performance.
- Growth has been Riot Platforms’ biggest valuation strength. Historical growth has been very high relative to the Riot Platforms Peer Group and forecasted growth is relatively very high. Asset Growth, Equity Growth, and Revenue Growth have been superior. These factors have buoyed market perceptions of Riot Platforms. Riot Platforms’ historical income statement and balance sheet growth are not available.
- Profitability is very high. The company has very high excess cash and will have to work to reinvest at attractive returns to support profitability and valuation.
- Riot Platforms’ risk profile is neutral. Overall variability has been only average with only average revenue variability, very low E.P.S. variability, and very high stock price volatility. Financial Strength is below average and earnings’ expectations are relatively very high. The debt/capital ratio has been relatively steady.
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