Circle Internet Group (CRCL)
Valuation Overview•Is Circle Internet Group Overvalued or Undervalued?
Priced at a premium to peer multiples and intrinsic cash flows, demanding strong execution to justify current levels.
Fragile underlying quality score of 39/100; weak margins or elevated debt leverage warrant caution.
Analysts remain bullish, forecasting further upside expansion with consensus targets suggesting solid gains.
Verdict: Mixed fundamental profile with offsetting strengths and weaknesses.
Wall Street is highly bullish, projecting significant upside alongside robust expected earnings growth. The company currently dilutes shareholders to fund operations and growth rather than returning capital.
CRCL struggles with subpar profitability and pressured margins. This is backed by a fortress balance sheet, holding significant net cash ($77.4B) and minimal debt risk.
The company maintains stable top-line performance paired with stable bottom-line earnings. However, profitability remains a major concern with severely compressed operating margins (-4.6%).
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $694.1M | +63.9% | — | — | — | |
| EBITDA | $81.8M | — | +16.4% | — | — | |
| Net Income | $55.3M | -144.7% | +55.1% | — | — | |
| EPS (Diluted) | $0.23 | -113.6% | — | — | — | |
| Free Cash Flow | $11.7M | +73.4% | — | — | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 7.2% | 20.6% | 12.7% | 2.9% |
| Operating Margin | -4.6% | 8.4% | -16.2% | -46.9% |
| Net Margin | -2.8% | 8.4% | -134.6% | -108.1% |
| FCF Margin | 17.8% | 15.0% | -17.0% | -37.9% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q2'26Latest | $0.19 | $0.21 | +8.1% | ||
| Q1'26 | $0.16 | $0.43 | +161.6% | ||
| Q4'25 | $0.19 | $0.64 | +234.7% | ||
| Q3'25 | $-1.10 | $1.02 | +192.7% | ||
| Q2'25 | — | $0.29 | — | ||
| Q2'25 | — | $0.29 | — |
Total return is -59.8% (1Y), lagging the benchmark by -84.8%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | -3.9% | -13.2% | — |
| 1Y | -59.8% | -84.8% | — |
| 3YCAGR | +37.3% | +18.0% | — |
| 5YCAGR | +20.9% | +8.6% | — |
| 10YCAGR | +10.0% | -3.6% | — |
The S&P 500 is at 31.3x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about Circle Internet Group (CRCL) valuation, health, and returns.
Circle Internet Group is estimated to be overvalued under our discounted cash flow framework. relative multiples indicate the stock is Expensive versus peers compared to industry peers. overvalued (implying -23.4% downside from DCF intrinsic value of $61.43)
Circle Internet Group has multiple valuation anchors: DCF Intrinsic Value: $61.43 | Peer Relative Fair Value: $34.41 | Wall Street Analyst Target: $124.63 (implying +55.3% upside). A convergence of these signals offers higher conviction.
Circle Internet Group displays weak financial health with a composite quality score of 39/100, supported by a Piotroski F-Score of 4/9, Return on Invested Capital (ROIC) of -3.4%.
Circle Internet Group does not return material capital to shareholders via dividends or share repurchases, electing to retain earnings to fund internal growth.
Circle Internet Group's current growth trajectory is Stable. The company achieved +63.9% 1Y revenue growth and -113.6% 1Y EPS growth, compared to its 3Y revenue CAGR of N/A.
Wall Street consensus is Buy based on 12 analysts, beating EPS expectations in 100% of recent quarters with a 4-quarter streak. The consensus price target represents a +55.3% change from current levels.
Investment risks for Circle Internet Group include: -80.9% 1-year max drawdown, high beta (3.02x market volatility). Volatility risk is characterized by a beta of 3.02x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.