Nebius (NBIS) Stock Still Looks Reasonable Despite Fresh AI Partnership News
Bailey Pemberton
Fri, July 31, 2026 at 2:40 AM GMT+5:30
3 min read
- NBIS
+27.13%
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Nebius Group stock has surged over the past year, yet the company still screens as undervalued on market multiples while scoring poorly on broader valuation checks. After such a strong run, investors are weighing how much of the AI infrastructure story is already reflected in the price
Over the last 12 months, Nebius Group has returned 172.3%, which puts extra focus on whether recent gains leave enough room for further upside relative to fundamentals
The Nvidia stake and long term cloud commitments from large tech customers can support high expectations for Nebius’ AI infrastructure demand. At the same time, the new US$775 million secured debt facility introduces leverage that could weigh on equity value if cash generation falls short
Nebius passes only 1 of 6 valuation checks, so the wider framework currently leans more expensive than cheap despite the stock screening as undervalued on multiples
The issue now is whether Nebius Group’s current share price still offers a sensible entry point given this mix of strong returns, AI driven demand, and a low overall value score
Nebius Group delivered 172.3% returns over the last year. See how this stacks up to the rest of the Software industry
Is Nebius Group Still Cheap on Earnings?
The P/E ratio is a useful guide here because Nebius Group is already generating earnings and trades alongside profitable software peers. Nebius currently has a P/E of 51.6x, which is above the software industry average of about 29.6x and also higher than the peer group average of 39.9x. On simple comparisons, that indicates a premium price for each dollar of earnings
However, the more tailored fair P/E ratio for Nebius is estimated at 71.0x based on its profile, which is above the current 51.6x level. Under this framework, the stock trades below the level suggested by that fair ratio. Despite Nvidia’s US$2b partnership influencing sentiment and putting Nebius in the spotlight, the current P/E remains at a discount to this fair multiple
On the P/E multiple alone, Nebius Group stock appears undervalued relative to the fair ratio implied by its characteristics
See what the numbers say about this price — find out in our valuation breakdown
The Nebius Group Narrative: What Would Justify Today’s Price?
Simply Wall St Narratives for Nebius Group pick up where the valuation puzzle leaves off and explain what would need to happen to Nebius Group’s future growth, margins and earnings for the stock to be worth materially more or less than today’s price. Each view then links its figures to a clear stance on how growth, profitability and risks could change over time. You can revisit this on the Community page as new information becomes available
