One-glance verdict
Overvalued
$77.12 our estimate vs market $158.74
Wall Street consensus: $281.00 (264.3% higher than our fair-value estimate)
106% above our estimate, beyond the bull case
Fundamentals snapshot
Nebius Group N.V.
NBIS · NMS · Communication Services · Internet Content & Information
Current price
$158.74
52-week range
$73.52 - $299.86
Market cap
$43.15B
Balance sheet
Distressed
-9.95x Concerning
Net debt $2.15B. Interest coverage shows how many times profit covers the interest bill.
What stands out
2 Rewards
1 Risk
2 rewards · 1 risks
- Reward Revenue grew 350.9% last year.
- Reward Free cash flow was positive in 6/10 years.
- Risk Net debt grew 387.0% over 3 years.
What this company does
Nebius Group N.V.
Nebius Group N.V. provides the essential technology infrastructure, like powerful computer clusters, that companies need to build and run artificial intelligence (AI) programs globally. Their main income comes from renting out this AI technology and from their online education platform that helps people learn tech skills. This is important because as AI becomes more common, companies like Nebius are crucial for enabling that growth.
How the company got here
Nebius Group N.V. has a long history, originally founded in 1989 and formerly known as Yandex N.V. The company has undergone a significant transformation, changing its name to Nebius Group N.V. in August 2024. This rebranding reflects its strategic shift towards building comprehensive infrastructure specifically designed to support the rapidly growing global Artificial Intelligence (AI) industry. Its journey has involved evolving its technological capabilities to meet the demanding needs of AI development and deployment.
What it actually does
At its core, Nebius Group N.V. provides the foundational technology that powers AI. Think of it like building the highways and power plants for a new city, but for AI. They offer large collections of powerful computer processors called GPU clusters, which are essential for training complex AI models. They also provide cloud platforms, which are like renting computing power and storage over the internet, and a suite of tools and services to help developers build and manage their AI applications. This infrastructure is crucial for companies and researchers working on cutting-edge AI advancements.
AI Cloud Infrastructure
This is the primary engine of Nebius Group's business, focusing on providing the essential computing power for AI development. They offer access to massive clusters of Graphics Processing Units (GPUs), which are specialized computer chips that excel at the parallel processing needed for AI tasks like training machine learning models. Companies and researchers rent this computing power through Nebius's cloud platform, allowing them to develop and deploy AI applications without the massive upfront cost of buying and maintaining their own hardware. This segment is central to Nebius's strategy, supported by a key partnership with NVIDIA Corporation, a leader in GPU technology, to expand its AI cloud capabilities.
TripleTen (Edtech)
Beyond its core infrastructure, Nebius Group also operates TripleTen, an educational technology (edtech) platform. TripleTen focuses on re-skilling individuals, helping them acquire the necessary knowledge and abilities for careers in the technology sector. This segment addresses the growing demand for skilled tech professionals by offering training programs that can lead to new job opportunities in fields like software development and data science. It represents a diversification into human capital development, complementing their technology infrastructure offerings.
Avride (Autonomous Driving Technology)
Another distinct business line is Avride, which is dedicated to developing advanced autonomous driving technology. This involves creating the software and systems that enable self-driving cars and delivery robots to navigate and operate independently. Avride's work is at the forefront of the mobility revolution, aiming to make transportation safer and more efficient through artificial intelligence and robotics. This segment showcases Nebius's commitment to applying AI solutions to real-world challenges in transportation and logistics.
What management is betting on now
Nebius Group's management is heavily focused on expanding its full-stack infrastructure to meet the surging global demand for AI capabilities. Their strategy involves scaling up their large-scale GPU clusters and cloud platforms, making them readily available for AI developers and researchers. A key priority is strengthening their strategic alliance with NVIDIA, a move designed to accelerate the growth and enhance the performance of their AI cloud infrastructure. By providing robust and accessible tools, Nebius aims to become a foundational pillar for innovation across the entire AI industry.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q4
$-562.10M
FY2025 Q4
$-3.68B
Revenue
$529.80M
Net income
$82.50M
Diluted EPS
0.33
Operating cash flow
$384.80M
Free cash flow
$-3.68B
Fetching…
Sources
Revenue
$117.50M
Net income
$-641.40M
Diluted EPS
-2.28
Operating cash flow
$245.60M
Free cash flow
$-562.10M
Fetching…
Sources
Is it cheap or expensive?
Fair value $77.12 vs current price $158.74
Wall Street consensus is the average analyst price target: $281.00 (264.3% higher than our fair-value estimate).
Our most-likely fair value is $77.12 a share — about 51.4% below today's price of $158.74, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Distressed
Net debt $2.2B. Interest coverage -9.9x.
Net debt
$2.15B
Interest coverage
-9.95x
Nebius Group N.V. is healthier than 0 of 1 peers on balance-sheet leverage.
Distressed
Worse cushion
Baseline
Better cushion
NBIS
BASELINE
Nebius Group N.V.
Total debt $10.20B Interest coverage -9.95x This is the baseline the peer rows are being compared against.
What you should know
The case for and against NBIS
2 Rewards
1 Risk
Rewards
-
Revenue grew 350.9% last year.
-
Free cash flow was positive in 6/10 years.
Risks
-
Net debt grew 387.0% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
124.02x
Forward P/E
-44.12x
P/B
4.21x
P/S
31.85x
EV/EBITDA
177.00x
PEG ratio
0.36x
Profitability
How much profit each dollar creates
Gross margin
74.3%
Operating margin
-0.2%
Net margin
3.1%
ROE
0.6%
ROA
-1.9%
Health
Liquidity and balance-sheet strength
Debt / equity
0.99x
Current ratio
4.03x
Quick ratio
3.60x
Total debt
$10.20B
Total cash
$8.04B
Growth
How the business has been compounding
Revenue TTM
$16.99B
Revenue 5Y CAGR
-42.3%
EPS TTM
1.28
EPS 5Y CAGR
-28.7%
Cash flow
How much cash the business throws off
Operating CF TTM
$2.01B
Free CF TTM
$-3.68B
FCF margin
-21.7%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
0.0%
Last ex-div date
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