Market Pulse50Neutral

IREN LimitedOpportunity Rank #49(IREN) Intrinsic Value & DCF Analysis (2026)

Current Price

$42.16

Last updated: Mar 24, 2026

Price vs Intrinsic Value

$42.16
Price
$146.88
Intrinsic Value
Undervalued by 248%MOS: $117.50

Fundamental Score

74/100
Bullish

Weighted across 6 signals

Narrative Score

74/100
Strong

No change vs previous

The intrinsic value of IREN Limited (IREN) is estimated at $146.88 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $42.16, the stock appears undervalued relative to its projected cash flow fundamentals. This estimate assumes an 11.35% long-term growth rate and a 9.79% discount rate, reflecting expected future free cash flow and cost of capital.

The intrinsic value of IREN Limited (IREN) is estimated at $146.88 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $42.16, the stock appears undervalued relative to its projected cash flow fundamentals. This estimate assumes an 11.35% long-term growth rate and a 9.79% discount rate, reflecting expected future free cash flow and cost of capital.

Valuation Details

$146.88
▲ 248.39% upside
20% margin of safety: $117.50
Years: 10Growth Rate: 11.35%
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Capital Efficiency

Average Quarterly ROIC
3.45%
Cost of Capital (estimated)9%
Value StatusUnderperforming Capital

The company is earning below its required return. This may indicate inefficient use of capital or excess cash that isn't being reinvested.

Complete historical ROIC is available with
.

Fundamental Details

74/100
BullishWeighted across 6 signals
DCF Discount
248.4% discount to price
100
FCF Yield
9.9% trailing FCF yield
100
ROIC vs WACC
ROIC 3.5% vs WACC 9.0% (0.4x)
19
Net Debt / FCF
0.3x net debt to FCF
94
Buybacks
Share count flat
50
FCF CAGR (5Y)
233.9% 5Y FCF CAGR
100
Strengths: DCF Discount, FCF Yield. Concerns: ROIC vs WACC.

Narrative Details

74/100
Strong
Vs 6-Month Baseline:High (84th pct)Weighted across 6 recent drivers
Trend: StableConfidence: 95%Updated: 1h ago
Sources: 95 (91 News · 4 Analyst)
Drivers(last 30 days)
23 regulatory scrutiny+1.4
65 news sentiment+1.0
Earnings miss-0.0
Downgrade headlines-0.0
Earnings beat-0.0
Analyst upgrades+0.0

Investment Coach

Updated 14h ago
BUYConfidence: 69%
Thesis
IREN Limited is significantly undervalued with an estimated fair value 264% above its current price, supported by strong fundamentals including a bullish score of 74 and excellent free cash flow growth. Despite trailing returns relative to its cost of capital, the company's valuation and fundamental metrics suggest attractive upside potential.
Key Risk
The company's return on invested capital remains below its weighted average cost of capital, posing a risk to sustained value creation.
Signals To Watch
  • Monitor whether valuation discount remains above 10%.
  • Track ROIC vs WACC spread for sustained improvement.
  • Follow narrative trend for meaningful shifts in the score direction.
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Historical Growth Rates
Free Cash Flow- - -Trend CAGR: 48.33%5 Year CAGR: 190.12%

Free Cash Flow (in millions)

TTM2025202420232022202120202019
$1,389$1,619$532$122$316$7$3$2

How Intrinziq Estimates Fair Value

Intrinziq estimates IREN Limited's intrinsic value using a discounted cash flow (DCF) model based on free cash flow trends and a market-based discount rate. The model projects future cash flows over ten years and discounts them using a market return assumption to estimate fair value.

IREN LimitedFinancial Services

IREN Limited operates in the vertically integrated data center business in Australia and Canada. The company owns and operates computing hardware, as well as electrical infrastructure and data centers. It also mines Bitcoin, a scarce digital asset that is created and transmitted through the operation of a peer-to-peer network of computers running the Bitcoin software. The company was formerly known as Iris Energy Limited and changed its name to IREN Limited in November 2024. The company was incorporated in 2018 and is based in Sydney, Australia.