Applied Digital Corporation

APLD

TechnologyInformation Technology ServicesNASDAQ

$44.59

Market Cap: $12.74B

Applied Digital Corporation (APLD) Valuation Summary

Updated Apr 20, 2026 22:15

Model	Range	Fair Value	Upside
▸ Discounted Cash Flow
Revenue DCF 5Y	$22.92 – $133.93	$57.54	+78.8%
Revenue DCF 10Y	—	N/A	—
▸ Trading Multiples
EV/Revenue	-$0.63 – $7.94	$2.96	-90.8%

Valuation History

DCF Analysis

Applied Digital Corporation (APLD) Revenue DCF (5Y)

REVENUE DCF FAIR VALUE

$57.54

Market Price

$44.59

Upside / Downside

+29.0%

Verdict

Undervalued

Using a Revenue DCF model with operating margin convergence from -33.5% to a target of 10.0% over 5 years, discounted at a WACC of 8.6%, Applied Digital Corporation (APLD) has an intrinsic value of $57.54 per share (range: $22.92 – $133.93).

Key Assumptions

Current Operating Margin

-33.5%

Target Operating Margin

10.0%

WACC

8.6%

Terminal Growth Rate

3.0%

Historical CapEx/Rev

325.0%

Target CapEx/Rev

48.9%

D&A/Revenue

32.6%

Tax Rate

21.0%

Operating margin fades linearly from the current level to the industry target over the 5-year projection. CapEx intensity fades from the historical average to a maintenance level (D&A × 1.5). Tax is only applied when operating income is positive (NOL shield).

Margin Convergence Projection

USD in millions. Mid-year discounting convention.

Year	Revenue	Growth	Op Margin	Op Income	NOPAT	D&A	CapEx	ΔNWC	FCFF	PV(FCFF)
2026	412	91.3%	-24.8%	-102	-102	134	(1,112)	-117	-963	-924
2027	702	70.3%	-16.1%	-113	-113	229	(1,507)	-254	-1,137	-1,004
2028	1,499	113.5%	-7.4%	-111	-111	489	(2,388)	-699	-1,312	-1,067
2029	2,928	95.4%	1.3%	37	29	954	(3,049)	-1,254	-810	-607
2030	4,727	61.4%	10.0%	472	373	1,541	(2,311)	-1,579	1,181	814

Enterprise Value Bridge

Sum of PV(FCFF)-2,788

Terminal Value (Gordon Growth at 3.0%)21,685

PV of Terminal Value14,953

Enterprise Value12,166

(–) Net Debt589

Equity Value11,577

(÷) Shares Outstanding201

Fair Value per Share$57.54

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	4.0%	7.0%	10.0%	13.0%	16.0%
6.6%	$83	$96	$109	$121	$134
7.6%	$58	$68	$77	$87	$97
8.6%	$42	$50	$58	$65	$73
9.6%	$31	$37	$44	$50	$57
10.6%	$23	$28	$34	$39	$45

Current price: $44.59. Green = undervalued, Red = overvalued.

Working Capital Assumption

Net Working Capital is modeled at -87.8% of revenue (historical average of receivables + inventory − payables). Changes in NWC (ΔNWC) are computed year-over-year and subtracted from free cash flow.

Trading Multiples

Fair Value

$2.93

Market Price

$44.59

Upside / Downside

-93.4%

Verdict

Overvalued

Using the industry peer median EV/Revenue multiple (trailing + forward), Applied Digital Corporation (APLD) has a fair value of $2.93 based on 8 comparable companies in the Information Technology Services industry.

EV/Revenue Valuation — Information Technology Services

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/Revenue	Forward EV/Revenue
Applied Digital CorporationAPLD	8,971	44.4x	23.4x
Tower Semiconductor Ltd.TSEM	25,088	16.0x	17.4x
Amkor Technology, Inc.AMKR	17,208	2.6x	2.7x
Jack Henry & Associates, Inc.JKHY	11,137	4.6x	5.0x
Confluent, Inc.CFLT	11,084	10.1x	8.7x
Amdocs LimitedDOX	7,228	1.7x	1.6x
EPAM Systems, Inc.EPAM	7,141	1.1x	1.3x
Open Text CorporationOTEX	5,854	2.1x	1.9x
AppFolio, Inc.APPF	5,711	6.0x	7.2x
Industry Median		3.6x	3.9x
(*) Revenue		216	408
= Enterprise Value		780	1,576
(-) Net Debt		589	589
Equity Value		191	987
(/) Outstanding shares		201	201
Fair Price		$1	$5

Selected Fair Value (avg of trailing + forward)

$2.93

-93.4%

Disclaimer: Sweet Value Lab provides estimated intrinsic values for informational purposes only. This is not financial advice. All models rely on assumptions that may not reflect future performance. Always do your own research before making investment decisions.

Model

Range

Fair Value

Upside

▸ Discounted Cash Flow

Revenue DCF 5Y

$22.92 – $133.93

$57.54

+78.8%

Revenue DCF 10Y

—

N/A

—

▸ Trading Multiples

EV/Revenue

-$0.63 – $7.94

$2.96

-90.8%

DCF Analysis

Applied Digital Corporation (APLD) Revenue DCF (5Y)

REVENUE DCF FAIR VALUE

$57.54

Market Price

$44.59

Upside / Downside

+29.0%

Verdict

Undervalued

Key Assumptions

Current Operating Margin

-33.5%

Target Operating Margin

10.0%

WACC

8.6%

Terminal Growth Rate

3.0%

Historical CapEx/Rev

325.0%

Target CapEx/Rev

48.9%

D&A/Revenue

32.6%

Tax Rate

21.0%

Margin Convergence Projection

USD in millions. Mid-year discounting convention.

Year	Revenue	Growth	Op Margin	Op Income	NOPAT	D&A	CapEx	ΔNWC	FCFF	PV(FCFF)
2026	412	91.3%	-24.8%	-102	-102	134	(1,112)	-117	-963	-924
2027	702	70.3%	-16.1%	-113	-113	229	(1,507)	-254	-1,137	-1,004
2028	1,499	113.5%	-7.4%	-111	-111	489	(2,388)	-699	-1,312	-1,067
2029	2,928	95.4%	1.3%	37	29	954	(3,049)	-1,254	-810	-607
2030	4,727	61.4%	10.0%	472	373	1,541	(2,311)	-1,579	1,181	814

Enterprise Value Bridge

Sum of PV(FCFF)-2,788

Terminal Value (Gordon Growth at 3.0%)21,685

PV of Terminal Value14,953

Enterprise Value12,166

(–) Net Debt589

Equity Value11,577

(÷) Shares Outstanding201

Fair Value per Share$57.54

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	4.0%	7.0%	10.0%	13.0%	16.0%
6.6%	$83	$96	$109	$121	$134
7.6%	$58	$68	$77	$87	$97
8.6%	$42	$50	$58	$65	$73
9.6%	$31	$37	$44	$50	$57
10.6%	$23	$28	$34	$39	$45

Current price: $44.59. Green = undervalued, Red = overvalued.

Working Capital Assumption

Trading Multiples

Fair Value

$2.93

Market Price

$44.59

Upside / Downside

-93.4%

Verdict

Overvalued

EV/Revenue Valuation — Information Technology Services

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/Revenue	Forward EV/Revenue
Applied Digital CorporationAPLD	8,971	44.4x	23.4x
Tower Semiconductor Ltd.TSEM	25,088	16.0x	17.4x
Amkor Technology, Inc.AMKR	17,208	2.6x	2.7x
Jack Henry & Associates, Inc.JKHY	11,137	4.6x	5.0x
Confluent, Inc.CFLT	11,084	10.1x	8.7x
Amdocs LimitedDOX	7,228	1.7x	1.6x
EPAM Systems, Inc.EPAM	7,141	1.1x	1.3x
Open Text CorporationOTEX	5,854	2.1x	1.9x
AppFolio, Inc.APPF	5,711	6.0x	7.2x
Industry Median		3.6x	3.9x
(*) Revenue		216	408
= Enterprise Value		780	1,576
(-) Net Debt		589	589
Equity Value		191	987
(/) Outstanding shares		201	201
Fair Price		$1	$5

Selected Fair Value (avg of trailing + forward)

$2.93

-93.4%