Nebius Group (NasdaqGS:NBIS): Valuation in Focus After Token Factory Launch and Renewed Investor Interest
Nebius Group (NBIS) has just launched its enterprise-ready Nebius Token Factory, a platform designed to simplify large-scale deployment and management of open-source AI models. This release is attracting attention from both investors and industry players.
See our latest analysis for Nebius Group.
Following the introduction of Token Factory and a surge in bullish sentiment, Nebius Group’s share price has pulled back about 14% in the past month after an incredible year-to-date gain of nearly 265%. While short-term momentum cooled, its one-year total shareholder return of 459% underscores continued belief in its long-term growth potential, fueled by ambitious product launches and strong revenue expansion.
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So amid a sharp pullback after massive gains and a wave of bullish analyst calls, is Nebius Group now trading at a bargain, or has the market already factored in its next phase of AI-driven growth?
Most Popular Narrative: 28.8% Undervalued
According to the most widely tracked outlook, Nebius Group’s fair value stands well above its last close price, pointing to notable upside potential if consensus projections play out. The following quote shows what drives analysts’ optimism at the heart of this valuation.
The current valuation assumes Nebius Group can sustain hyper growth in AI compute infrastructure. However, market-wide demand for AI and machine learning clouds is attracting intense competition and accelerating adoption of open-source technologies, which could drive pricing pressure and erode margins over the next several years. This could directly impact long-term profitability and gross margins.
Read the complete narrative.
Want to know the secret assumptions powering this high price tag? The big swing in fair value hinges on projections that break with past trends. Bold expectations for growth, profits, and margins are baked in. Click through to see which numbers the crowd believes will fuel the next leg higher.
Result: Fair Value of $156.4 (UNDERVALUED)
Have a read of the narrative in full and understand what’s behind the forecasts.
However, risks remain, such as intensifying competition and soaring compliance costs. These factors could limit Nebius Group’s expansion and challenge the bullish outlook ahead.
Find out about the key risks to this Nebius Group narrative.
Another View: A High-Multiple Reality Check
While analysts find Nebius Group deeply undervalued on a fair value basis, our latest valuation using the most-watched ratio tells a different story. The company trades at a price-to-earnings multiple of 146.9x, far above both the industry average of 33.5x and a fair ratio of 56.8x. This wide gap suggests the market is already pricing in immense growth, which leaves limited room for error and possible downside if expectations slip. Could these elevated multiples signal that optimism has gone a step too far?
See what the numbers say about this price — find out in our valuation breakdown.
NasdaqGS:NBIS PE Ratio as at Nov 2025
Build Your Own Nebius Group Narrative
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A great starting point for your Nebius Group research is our analysis highlighting 3 key rewards and 3 important warning signs that could impact your investment decision.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data
and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your
financial situation. We aim to bring you long-term focused analysis driven by fundamental data.
Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
Simply Wall St has no position in any stocks mentioned.
Valuation is complex, but we’re here to simplify it.
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