Applied Digital Corporation

APLD Technology Information Technology Services

Revenue
+322.4%
EPS
−1,071.4%
Free cash flow
−506.7%
Total debt
+828.1%

Quarter to August 2026, against a year earlier

15.52 1.35 +9.53%
Market cap
$4.3B
P/E
0.0×
Fwd P/E
−13.0×
Dividend yield
—
F-score
5/9
Altman Z
1.26
Beneish M
0.53
Dividend safety
n/a

Applied Digital Corporation (APLD) valuation and DCF model

What the price implies · reverse DCF

At $15.52 the price implies revenue of $458.97 billion by year ten, growing 87.1% a year, at a 10% free-cash-flow margin then.

The headline discounts the last twelve months’ free cash flow after share-based pay at 9.0% for ten years and grows it 2.5% a year after that, the same for every company, so the figure compares across the market (how a reverse DCF works).

The other way round · DCF
The price needs
87.1% a year for ten years
$15.52
today’s price

Both are growth in revenue, discounted at 9.0%, with 2.5% a year after year ten.

Base case on its own ten-year record Applied Digital Corporation’s own growth, carried forward

Its assumptions

Powerpack lets you start from a scenario and type over any of them.

The base case’s inputs, which Powerpack lets you change
1 · Revenue and margin
the four quarters to August 2026, from the 10-Q and 10-K filings

Yearly growth in revenue. It usually slows as the company matures.

2 · Rates

Cost of equity is the yearly return shareholders require, typically 8–11%. Terminal growth is growth forever after year 10, usually near long-run inflation, 2–3%.

3 · Per share

Diluted shares outstanding. Net debt, under Advanced inputs, is taken off before dividing.

Advanced inputs
negative is net cash
new shares the cash flow does not pay for

Against Applied Digital Corporation’s own cost of capital: risk-free 4.3% + beta 5.53 × equity premium 4.5% = 29.2% cost of equity; weighted, 29.2%.

Use 29.2%
Equity value $(47.98b) ▼ below market cap $4.37b
Base case value per share $(170.43) equity value ÷ 281.54m shares
Current price $15.52 market price per share
Below today’s price 1198.5% downside at the base case’s assumptions

How we got there$(54.03b) 10 years of cash to equity+$9.16b terminal value−$3.12b net debt=$(47.98b) equity value÷281.54m shares=$(170.43) per share

Valuation against its own history

Today’s multiple against its 5- and 10-year averages and the industry median (Information Technology Services).

Multiple Current 5Y avg 10Y avg vs 10Y avg Industry median vs industry 10Y range
P/B 2.81× 5.94× 5.53× 49% below 1.73× 62% above
EV/EBITDA — 73.92× 73.92× — 9.89× —
EV/Sales 8.76× 12.38× 14.23× 38% below 1.34× 553% above
3.52×5.90×8.28×10.66×10Y avg 5.53×202220232024202520262026

APLD trades at 2.81× P/B, against a 10-year average of 5.53× (range 2.81×–11.29×). That is cheaper than 100% of the last 5 year-end readings; re-rating to the average implies $30.51 per share.

Every growth rate on this page is the business’s — its cash flow, FFO or dividend — never its share price’s. A discounted-cash-flow model is only as good as its assumptions. Figures from the 10-K and 10-Q filings. Not investment advice.