IREN (IREN): fair value

Fair-value band

No premium history yet: 37 of the 250 daily readings a normalised band needs. The verdict above is made on the multiples against their own medians instead.

Is IREN undervalued?

Not enough premium history yet to say. IREN's verdict here (Fair) is made on its multiples against their own medians rather than a normalised band.

Diligence checklist

2 pass · 3 fail · 6 no data

• PASSCash actually collected from profit, last 12 months: 177%XBRL · IREN Limited gets $1.77 of real cash for every $1 of reported profit which means profits are real and not just numbers on paper. That's a good sign. 2 of the last 3 years were loss-making and can't be scored on this ratio at all: dividing cash flow by a loss says nothing about earnings quality.
• FAILGap between paper profit and real cash: -29.9%XBRL · IREN Limited collected more cash than it booked as profit, by 29.9% of everything it owns. That is the conservative direction, but it is far enough past my 5% line to flag: a gap this wide usually means something large and non-cash is running through the earnings, and I want to know what it is before I trust the profit figure.
• N/ADebt compared to one year of cash earnings: n/aXBRL · IREN Limited's earnings before interest, tax and depreciation are negative or can't be worked out over the window, so this ratio has nothing to divide by. A negative figure there is a finding in its own right: read it off the return-on-capital line above rather than as a clean bill of health on debt.
• FAILHow much more it earns on capital than that capital costs: -12.94ppXBRL · IREN Limited earns 12.9 points LESS on the capital it employs than that capital costs. Every dollar reinvested here destroys value instead of creating it, which turns growth into a reason to worry rather than a reason to own the business. It has been below its cost of capital for 3 straight quarters. Three years of that is where I stop work, so this is worth watching rather than ignoring. The gap is no wider than it was at the start of the window.
• PASSStock sold by executives and directors on the open market, last 6 months: $0.4MEDGAR · Insiders at IREN Limited sold $0.4M of stock on the open market in the last 6 months, which is inside the $5 million line I draw. Selling that size is ordinary diversification rather than a signal about the business. The sellers: Guzowski Christopher $0.4M. Options being exercised, and shares held back to cover the tax on them, are not sales and I don't count them either. filing ↗
• N/AHow long the CEO has run this company: n/aTEXT · I couldn't establish when IREN Limited's current chief executive took the job: no appointment appears in the 8-K item 5.02 history.
• N/AProfit margin held up during the last sales slump: n/aXBRL · There's no revenue downturn in IREN Limited's filed record, or gross profit isn't tagged, so this test has nothing to measure. It needs a bad patch to look at: without one, whether customers would stay through a price rise is untested rather than proven.
• N/ANormal profit margin across a full business cycle: n/aXBRL · There is no valuation for IREN Limited, so there is no normal margin to test the current one against.
• N/AHow much of the stock trades on an average day: $1,576MMARKET · IREN Limited trades so much volume that this basically isn't a concern. There's no pass or fail here because the answer depends on how big a position I'd actually want to take.
• N/AShare of revenue from its single biggest customer: not establishedTEXT · I fetched and read IREN Limited's August 27, 2026 10-K but found no sentence about customer concentration. That isn't the same as the filing saying there is none: it may simply be worded in a way my search doesn't catch. Read Item 1 and the concentration-of-risk note yourself before trusting this row. filing ↗
• FAILWhether the company switched auditors in the last 2 years: yes, 2025-11-28EDGAR (dealbreaker) · Companies sometimes switch the accounting firm that signs off their books right before something bad is uncovered, which is why I look. IREN Limited changed auditors on November 28, 2025. The change itself is a hard fact; the reason for it is written in prose, so read the filing before treating this as the red flag it may be. filing ↗