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Cerebras Systems

Valuation method revision. Reference price and operating evidence remain fixed at the original cutoff.

PASS AT CURRENT PRICE • revised 26 August 2026
Reference
$209.85
20 Aug 2026
Conviction
4.9 / 10
Exact 4.865
Weighted value
$93.82
-55.3% expected return
Decision
PASS
No initial position

The answer first

The architecture and demand evidence remain credible. The corrected company specific method values gross profit, reinvestment, concentration, financing and dilution together. Even the bull target is below the reference price.

Original weighted value, clearly labeled historical: $179.10. Revised active value: $93.82.

Company specific valuation method

Primary: probability weighted 2028 enterprise value to consolidated gross profit. Target equals gross profit times scenario multiple, plus net cash, divided by diluted shares.

Cross checks: implied EV to revenue, normalized enterprise EBITA, and reverse FCF DCF. They are not averaged.

EV to revenue is not primary because revenue quality changes with margins, warrants, mix and deployment capital. A direct DCF is terminal heavy. A hardware and cloud SOTP lacks disclosed segment profit and capital.

Revised scenarios

ScenarioProb.RevenueGMEV/GPNet cashSharesTargetReturn
Bear30%$4.0B38%7.0x$2.0B340M$37.18-82.3%
Base50%$6.0B46%10.0x$3.0B330M$92.73-55.8%
Bull20%$8.0B52%13.0x$4.0B320M$181.50-13.5%

Weighted scorecard

PillarWeightOldNew
Business Quality30%6.36.3
Management Quality15%6.56.5
Industry Tailwind15%9.09.0
Valuation and Margin of Safety30%2.51.5
Risk and Asymmetry10%3.52.0
Conviction5.3154.865

Only Valuation and Rule R2 Risk move. The pass band and no position sizing remain unchanged.

Primary financial evidence

PeriodRevenueGross profitOperating incomeOCFCapexFCF
FY2024$290.3M$122.7M$-101.4M$452.0M$23.4M$428.5M
FY2025$510.0M$199.1M$-145.9M$-10.1M$382.7M$-392.8M
H1 2025$202.8M$73.7M$-85.7M$-123.8M$185.1M$-308.9M
H1 2026$373.5M$111.7M$-492.3M$-47.5M$548.9M$-596.4M
TTM 2026-06-30$680.7M$237.1M$-552.5M$66.3M$746.5M$-680.2M

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