Understanding Asset Value

Report Generated
2026-02-02 15:45:43
HUT
Hut 8 Corp.
$55.62
Price from Yahoo Finance
Today: -0.39% | YTD: +8.5%

How Hut 8 Corp. Makes Money

Income Statement Flow (TTM) | Source: Yahoo Finance

Revenue
$0.7B
Gross Profit
$0.6B
86% margin
Operating Income
$0.4B
60% margin
Net Income
$0.2B
31% margin

Current Price

Price $55.62
52-Week High $66.07
52-Week Low $10.04

Market Data

Market Cap $6.01B
Shares Outstanding 0.11B
Beta 6.17

Valuation Ratios

P/E (TTM) 28.67x
P/E (Forward) -50.79x
EV/EBITDA 13.17x

Financial Health

Profit Margin 115.4%
ROE 17.2%
Revenue Growth 90.9%

Levered Free Cash Flow (TTM) - Cash That Can't Lie

$0.14B 2.33% Yield
$-0.10B OCF - $0.65B CapEx - $0.03B Interest = $0.14B

Source: Cash Flow Statement | LFCF = Operating Cash Flow - CapEx - Interest Expense

BUY

Fair Value: $79.54

+43.0% Upside

Stock appears undervalued with 43.0% upside to fair value. High confidence based on valuation spread and data quality.

Investment Verdict

Hut 8 Corp. (HUT) currently trades at $55.62, representing a 43.0% discount to our calculated fair value of $79.54.

Key Strengths: Strong balance sheet (Net Debt/EBITDA: 0.7x); Strong interest coverage (11.8x); High profit margins (115.4%).

Key Risks: Elevated short interest (16.9% of float).

The company generates $0.14B in levered free cash flow annually, providing real cash returns to shareholders. Wall Street consensus is strong_buy with a mean price target of $70.47.

Business Simplicity Filter

CriterionStatusNotes
≤4 operating segments PASS Segment count estimated from sector classification. Verify in 10-K for accuracy.
Top 2 segments ≥70% of revenue PASS Revenue concentration estimated. Verify segment breakdown in 10-K.
≤3 material geographic regions PASS Most US-listed companies report US vs International (2 regions).
No exotic debt instruments or off-balance-sheet complexity PASS Review 10-K for convertibles, derivatives, and off-balance-sheet items.

Recommendation: PROCEED TO VALUATION

Company Profile

Industry Capital Markets
Employees 222
Country United States

Hut 8 Corp. operates as a vertically integrated operator of energy infrastructure and Bitcoin miners in North America. The company operates through four segments: Power, Digital Infrastructure, Compute, and Other. It also offers managed services for energy infrastructure development, such as site design, procurement, and construction management; software automation, process design, personnel hiring, and team training; utilities contracts, hosting operations, and customer management; energy portfolio optimization and strategic initiatives; and finance, accounting, and safety services, as well as engages in the Bitcoin mining business. In addition, the company provides colocation and data center cloud services; hosting services, which include the provision of mining equipment, as well as monitors, troubleshoots, repairs, and maintains related equipment; and equipment sales and repair services. Hut 8 Corp. was founded in 2017 and is based in Miami, Florida.

Enterprise Value Calculation

Market Capitalization $6.01B
(+) Total Debt $0.39B
(-) Cash & Equivalents $0.03B
Net Debt $0.36B
Enterprise Value $6.37B
EV = Market Cap + Total Debt - Cash = $6.01B + $0.39B - $0.03B = $6.37B

Leverage & Solvency

MetricValueWhat It Means
Net Debt / EBITDA 0.74x Very Strong
Interest Coverage 11.8x Very Strong
Debt / Equity 23.6% Conservative
Current Ratio 0.72 Review - may struggle with short-term obligations

Overall: Balance sheet is strong with conservative leverage.

Peer Comparison

Industry: Capital Markets | Data: TTM (Trailing 12 Months) as of 2026-02-02 | Source: Yahoo Finance

CompanyMarket CapP/EForward P/EEV/EBITDAProfit Margin
NVDA $4519.0B 46.1x 24.2x 40.8x 53.0%
GOOGL $4161.5B 33.9x 30.5x 27.7x 32.2%
AAPL $3965.2B 34.2x 29.1x 25.1x 27.0%
MSFT $3146.6B 26.6x 22.4x 18.4x 39.0%
META $1787.9B 30.1x 19.9x 17.8x 30.1%
HUT (Target) $6.0B 28.7x -50.8x 13.2x 115.4%
Peer Average (excl. target) - 33.9x 24.2x 25.1x 32.2%

Intrinsic Value Calculation

MethodInputsFair Value
Equity (TTM EPS) EPS: $1.94 x 41.0x P/E $79.54
Equity (Forward EPS) EPS: $-1.09 x 41.0x P/E $-44.89
EV-Based (EBITDA) EBITDA: $0.48B x 30.3x $131.85
Headline Fair Value Median value used (spread 318.5% exceeds 15% threshold) $79.54
Fair Multiples Basis: Fair P/E of 41.0x and EV/EBITDA of 30.3x. Multiples adjusted for above-average growth and strong profitability.

Sensitivity Analysis

P/E Multiple Sensitivity (using TTM EPS)

Low (39x)
Base (41x)
High (43x)
$75.66
$79.54
$83.42

EV/EBITDA Multiple Sensitivity

Low (29x)
Base (30x)
High (31x)
$127.39
$131.85
$136.31

Red / Green Dashboard

Green Factors (Positive)

  • Strong balance sheet (Net Debt/EBITDA: 0.7x)
  • Strong interest coverage (11.8x)
  • High profit margins (115.4%)
  • Strong revenue growth (90.9%)

Red Factors (Concerns)

  • Elevated short interest (16.9% of float)

Assessment: Strong positive profile with multiple favorable factors.

Seasoned Analyst Perspective

Valuation Context

HUT trades at 28.7x TTM P/E and -50.8x Forward P/E. This compares to peer averages of 33.9x TTM and 24.2x Forward P/E. Note: The significant gap between TTM and Forward P/E suggests analysts expect substantial earnings improvement.

Cash Flow Quality

The company generates positive levered free cash flow of $0.14B, demonstrating its ability to generate real cash after all obligations.

Analyst Consensus

15 analysts cover this stock with a consensus strong_buy rating. Price targets range from $55 to $85, with a mean of $70.

Market Sentiment Indicators

VIX
VIX (Fear Index)

16.49 - Neutral/Low Fear

Neutral/Low Fear
F&G
CNN Fear & Greed Index

Score: 62/100

Greed
SKEW
CBOE SKEW Index (Tail Risk)

143.65

Elevated Tail Risk Concerns
MKT
Market Breadth

SPY YTD: 17.7% | RSP YTD: 12.3%

Moderately Narrow

Supply Chain Analysis

No customer/supplier data available for this company. Data is curated from SEC 10-K filings for major tech companies.

Earnings Surprise History (Last 8 Quarters)

Track Record: 6 beats, 1 misses, 0 in-line out of 7 quarters | 86% Beat Rate

DateEPS EstimateEPS ActualResultSurprise %
2025-11-04 $-0.11 $-0.05 BEAT 59.9%
2025-08-07 $-0.14 $1.34 BEAT 1056.7%
2025-05-08 $-1.40 $-1.23 BEAT 12.2%
2025-03-03 $0.88 $1.45 BEAT 64.9%
2024-11-13 $-0.37 $-0.13 BEAT 64.0%
2024-08-13 $-0.07 $-0.90 MISS -1096.5%
2024-05-15 $0.36 $2.87 BEAT 689.6%
Average Earnings Surprise: 121.5% (Company tends to beat estimates)

Analyst Data

Price Targets

High Target $85.00
Mean Target $70.47
Low Target $55.00

Consensus

Recommendation strong_buy
# of Analysts 15

Data Sources & Citations

All financial data sourced from:

Click any blue number throughout the report to view its source.

Disclaimer

This analysis is generated automatically using publicly available data and should not be considered as financial advice. All figures are sourced from Yahoo Finance and may contain inaccuracies. Always verify data with primary sources (SEC filings, company IR) before making investment decisions.

Past performance does not guarantee future results. Investing involves risk, including the possible loss of principal.

Why Levered Free Cash Flow Matters

Levered FCF is cash that can't be faked. Unlike earnings which can be manipulated through accounting (depreciation schedules, revenue recognition, etc.), cash flow is simple: the money is either in the bank or it's not.

This metric shows how much actual cash the company generates after paying for:

A company with strong Levered FCF can pay dividends, buy back shares, pay down debt, or invest in growth - all from real cash, not accounting profits.

Why Customer & Supplier Earnings Matter

Customers and suppliers report earnings BEFORE the company you're analyzing. Their results give you early signals about demand and supply chain health.

Customer Example: If Microsoft (AMD customer) beats revenue estimates by 20%, it likely means they bought more chips than analysts expected. This is bullish for AMD's upcoming earnings.

Supplier Example: If TSMC (AMD supplier) reports strong demand from AMD, that confirms AMD's production is ramping up.

By the time AMD reports, you already have data points from 5+ related companies. Smart analysts piece these together to predict earnings before they're announced.

Why Segment Breakdown Matters

Not all revenue is equal. Different business segments have different growth rates and profit margins.

For example, AMD's Data Center segment has ~40% margins while Gaming might be ~15%. A shift toward Data Center means higher overall profitability even if total revenue stays flat.

Watch for: