Wolfspeed Inc. (WOLF)
Valuation Overview•Is Wolfspeed Inc. Overvalued or Undervalued?
Trading at a discount to intrinsic cash flow value, implying pessimistic long-term market expectations.
Fragile underlying quality score of 31/100; weak margins or elevated debt leverage warrant caution.
Analysts remain bullish, forecasting further upside expansion with consensus targets suggesting solid gains.
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Verdict: Mixed fundamental profile with offsetting strengths and weaknesses.
Wall Street is highly bullish, projecting significant upside. The company currently dilutes shareholders to fund operations and growth rather than returning capital.
WOLF struggles with subpar profitability and pressured margins. This is paired with a moderately leveraged but stable balance sheet.
The company demonstrates solid revenue growth (9.8% 3Y CAGR) paired with stable bottom-line earnings. This growth is supported by elite operational efficiency, sustaining an impressive 37.9% operating margin.
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $149.6M | -6.1% | +9.8% | +10.0% | -7.5% | |
| EBITDA | -$90.2M | — | -127.4% | — | — | |
| Net Income | -$145.4M | -86.2% | -100.1% | — | -38.0% | |
| EPS (Diluted) | $-0.28 | -65.6% | — | — | -34.9% | |
| Free Cash Flow | $0.00 | +33.8% | -35.7% | -50.3% | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 31.2% | 8.5% | 18.1% | 24.8% |
| Operating Margin | 37.9% | -90.6% | -69.5% | -38.8% |
| Net Margin | -159.3% | -121.0% | -99.6% | -60.5% |
| FCF Margin | -44.3% | -259.8% | -210.2% | -108.8% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q3'26Latest | $-2.45 | $-2.26 | +7.8% | ||
| Q2'26 | $-3.78 | $-3.26 | +13.8% | ||
| Q1'26 | $-0.61 | $-6.11 | -893.5% | ||
| Q4'25 | $-0.71 | $-0.55 | +22.9% | ||
| Q3'25 | $-0.72 | $-0.77 | -6.9% | ||
| Q2'25 | $-0.82 | $-0.72 | +12.2% | ||
| Q1'25 | $-0.97 | $-0.95 | +2.1% | ||
| Q4'24 | $-1.01 | $-0.91 | +9.9% |
Total return is +42.9% (1Y), outperforming the benchmark by +27.9%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | +86.4% | +73.7% | — |
| 1Y | +42.9% | +27.9% | — |
| 3YCAGR | -2.4% | -28.0% | — |
| 5YCAGR | -15.1% | -29.4% | — |
| 10YCAGR | +3.3% | -11.5% | — |
The S&P 500 is at 31.3x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about Wolfspeed Inc. (WOLF) valuation, health, and returns.
Wolfspeed Inc. is estimated to be undervalued under our discounted cash flow framework. undervalued (implying +232.0% upside to DCF intrinsic value of $117.13)
Wolfspeed Inc. has multiple valuation anchors: DCF Intrinsic Value: $117.13 | Wall Street Analyst Target: $54.32 (implying +54.0% upside). A convergence of these signals offers higher conviction.
Wolfspeed Inc. displays weak financial health with a composite quality score of 31/100, supported by a Altman Z-Score of -0.8 (distress zone), Piotroski F-Score of 2/9, Return on Invested Capital (ROIC) of -17.1%.
Wolfspeed Inc. does not return material capital to shareholders via dividends or share repurchases, electing to retain earnings to fund internal growth.
Wolfspeed Inc.'s current growth trajectory is Decelerating. The company achieved -6.1% 1Y revenue growth and -65.6% 1Y EPS growth, compared to its 3Y revenue CAGR of +9.8%.
Wall Street consensus is Hold based on 19 analysts, beating EPS expectations in 75% of recent quarters with a 2-quarter streak. The consensus price target represents a +54.0% change from current levels.
Investment risks for Wolfspeed Inc. include: -72.7% 1-year max drawdown, high beta (4.36x market volatility), elevated distress risk. Volatility risk is characterized by a beta of 4.36x.
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.