Applied Digital (APLD)
Up 486% in the past year, APLD has had an incredible run and it appears that the momentum continues to carry on despite a 28 price to sales ratio. And despite such a high valuation, it still retains a Strong Buy rating from analysts with an average $42.81 price prediction for April 2027 (a +36% one year price forecast).
| ALPD | |
| Share Price | $ 31.48 |
| Revenue Per Share | $ 1.12 |
| Price to Sales | 28.2 |
| Revenue Growth (Forward 1yr) | 44.3% |
| PSG | 0.6 |
The reason for these such high share price predictions is Applied Digital’s stellar revenue growth which has seen a 143% increase year over year on a TTM basis. And with forward 1 year revenue growth forecasts of another 44% increase, this gives Applied Digital a PSG ratio of just 0.6 which indicates that it is currently undervalued.
While they have missed 3 of their last 4 earnings calls, they have beat the latest one and have recently shifted from Bitcoin mining to AI infrastructure; a move that the market has rewarded with a 1330% share price increase since the announcement in November 2022. Mordor Intelligence also estimates that the Digital Infrastructure market will be worth around $1.08T in 2031 which represents a compound annual growth rate (CAGR) of around 20% from 2026-2031. APLD is now in a fantastic position to take advantage of that growth and the market has certainly built that into its 28 price to sales.
We have put APLD as a medium risk, high reward stock and maintain our Strong Buy rating with a $45.65 target price for April 2027 which equates to a +44% one year price forecast.
Topics: APLD stock price prediction, Applied Digital stock analysis, APLD analyst rating
