Cerebras Systems Inc CBRS
Clears both ethical standards
An entry written while the outcome is still unknown. It will be scored by what the market does next, and it will never be edited to look cleverer than it was.
In plain words · Cerebras Systems Inc.
read at $188.61
Cerebras Systems Inc sits unlabelled at $188.61. The next dated read will name it.
- PHPhase · no phase label on file yet
- INInsiders · no filings inside 60 days, left as found
- POPositioning · no disclosures inside 60 days, left as found
- OPOptions · no verdict drawn today, left as found
- SCScreen · passes the values gate
- edge confirmed
- edge broken
- edge forming
Each arm is one independent read. Conviction is not a single call, it is how many edges converge.
The investor read · the season, not the day
| Phase | Unlabelled |
| Price | $188.61 |
| Valuation | 410.02 trailing · 196.21 forward price to earnings |
| Values screen | PASS · score 70.0 |
| Beta | N/A |
The opportunity · what the numbers say it is worth
Price history & projections · where it has been, where the models see it going
The valuation journey · where the price sits against fair value and the Street
Green marks levels above today's price, red below; the shaded band is the gap between the price and our fair value.
Reading the gap · Our more conservative model reads it as fully-to-richly valued here, while the Street is more bullish — a quality-at-a-fair-price name rather than a deep-value one.
| Revenue growth | 94.40% |
| Profit margin | 41.02% |
| Debt to equity | 49.47 |
| Analyst consensus | Strong Buy · 11 covering |
Fair value and rating are our own model estimates; target range reflects third-party analyst estimates. Analysis, not advice.
The values screen, explained · five checks, plain English
This company clears both standards. There are two widely recognised ways to check whether a company is suitable for a Muslim investor. Here is how it did on each:
Used by most halal investing apps ✓ PASSES
The one Titan applies ✓ PASSES
What these two standards are, and how they differ →
- Business activity Its core business isn't built on prohibited lines — no gambling, alcohol, tobacco, weapons, or interest-based lending. Pass
- Debt load Interest-bearing debt is of its assets, above the one-third ceiling the screen allows. Fail
- Interest-bearing cash Interest-bearing cash and securities are of assets, above the one-third limit. Fail
- Receivables Money owed to the company is of assets, above the 49% limit. Fail
- Revenue purity of revenue comes from non-compliant sources, over the 5% line. Fail
Every security is read against two recognised standards: our stricter asset-based screen (ratios measured against total assets) and the more widely used market-value standard (measured against market capitalisation). Where they agree we say so plainly; where they part ways — almost always on the debt check — we show both readings and mark it, because that disagreement is the finding, not a fault. We report the score; you and your scholar make the call.
The business, in plain words · what the numbers mean
Big chips meet bigger valuation doubts
Picture a warehouse of racks that can train the next giant model in weeks rather than months. Cerebras delivers exactly that hardware, and the 94 percent revenue jump plus 41 percent margins show real demand. Yet the shares trade at 180 times forward earnings, eleven percent above our fair value, so the numbers do not justify stepping in.
We pass for straightforward reasons. Sky-high multiples already bake in years of flawless execution in a business whose customers can pause orders the moment chip cycles turn. Narrow moat and 19 percent return on equity look solid on paper, yet they offer little cushion when the cycle shifts.
The semiconductor industry is famously cyclical, and peak earnings often arrive with the lowest multiples. Here the multiple is already extreme, which raises the classic trap of paying top dollar for earnings that may soon fall. Ethical screen clears, but price and timing do not. Analysis, not advice.
| Forward P/E | 196.2x expensive even after accounting for its growth |
| Trailing P/E | 410.0x expensive — the price assumes strong growth ahead |
| Revenue growth | 94.4% growing very fast |
| Profit margin | 41.0% highly profitable on every dollar of sales |
| Return on equity | 18.8% a solid return on shareholder capital |
| Debt to equity | 0.49 minimal debt — a conservative balance sheet |
| Current ratio | 2.51 comfortably covers its short-term bills |
| Market cap | $42.0B |
| Employees | 340 |
The risks · The main risks here are ordinary market swings and the chance our fair-value read proves too optimistic.
Plain-English interpretation of our own screen data. Analysis, not advice.
Latest news · what the market is reading on CBRS
- › Nvidia, AMD, Mircon, TSMC Shares Sink as China Unveils Powerful New AI Model GuruFocus.com · 15d ago
- › Chip Stocks, Tech IPOs, and Wildfire Smoke Are All Clouding the Outlook Barrons.com · 15d ago
- › This Data Center IPO Is the Next Big Test for the AI Trade Barrons.com · 16d ago
- › Nvidia vs. AMD vs. Cerebras: Which Is the Best AI Inference Stock to Buy Today? Motley Fool · 16d ago
- › Cerebras CEO Andrew Feldman Says Elon Musk Found a ‘Pretty Good Idea’ in Leasing SpaceXAI’s Unused Grok Capacity to Anthropic Benzinga · 17d ago
Headlines from third-party outlets, linked for reference — not our reporting, not advice.
Related securities · others in CBRS's space worth a look
Screened names in the same industry · explore each on its own page.
The trader read · the latest dated commentary
What holding actually paid · price plus dividends
| Period | Price then | Price return | Divs per share | $1,000 became | Total return |
|---|
Historical returns from market close data. Past performance does not guarantee future results.