Aug. 18 at 5:12 PM
$SMCI š THE VALUATION GAP IS GETTING RIDICULOUS.
Look at the P/E comparison:
š„ SMCI: 11.85x trailing | 8.89x forward
š¹ HPE: 54.78x trailing | 15.13x forward
š¹ DELL: 39.23x trailing | 25.92x forward
š¹ CRWV: No meaningful P/E ā unprofitable
š¹ NBIS: ~1,637x trailing
Now look at SMCIās fundamentals:
ā¢
$11.1B Q4 revenue
ā¢ ~93% YoY growth
ā¢
$1.70 adjusted EPS
ā¢
$65Bā
$72B FY27 revenue guidance
ā¢ ~
$39B trailing revenue
Yet the market is pricing SMCI at less than 9x forward earnings.
DELLās forward multiple is nearly 3x SMCIās. HPEās is roughly 70% higher.
Thatās the opportunity Bulls are looking at. SMCI doesnāt need a crazy CRWV/NBIS-style valuation. A rerating toward even HPEās forward multiple would represent roughly 70% multiple expansion, assuming earnings estimates holdā¦
The market has priced a massive risk discount into SMCI. If execution continues and that discount starts shrinking, the numbers leave plenty of room for upside.
$SPY $QQQ š„š
$CRWV $DELL
