HIVE Digital Technologies (TSX:HIVE) reported fiscal first quarter 2027 results that combined higher sales and revenue with a sizable net loss, driven largely by non cash items tied to a Swedish tax dispute.

See our latest analysis for HIVE Digital Technologies.

The CA$3.72 share price has risen over the past day and week, yet the 30 day and 90 day share price returns are down 6.77% and 18.78%. The 1 year total shareholder return of 14.46% contrasts with weaker 3 and 5 year total shareholder returns. Recent news around the delayed 10 Q filing and the Swedish tax dispute related charge gives investors fresh information to weigh against this mixed track record for HIVE Digital Technologies.

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HIVE Digital Technologies now sits between stronger top line figures and a large non cash loss that ties back to Sweden. Does the recent share price move point more to changing sentiment, or to what you are really paying for the business today?

Preferred Price-to-Sales Multiple of 2.2x: Is it justified?

At a last close of CA$3.72, HIVE Digital Technologies is described as expensive against its direct peers on one key yardstick, yet cheaper than the wider Canadian Software industry. The company is currently unprofitable, so investors are leaning on revenue based measures rather than earnings to frame what they are willing to pay.

The preferred metric here is the P/S ratio. This compares the company’s market value to its annual revenue and is often used for unprofitable or early stage businesses where earnings based ratios are not meaningful. For HIVE Digital Technologies, the P/S ratio of 2.2x sits above the peer average of 1.8x according to the statements, which suggests investors are paying more per dollar of sales than for similar crypto and software related businesses.

Against the broader Canadian Software industry though, that same 2.2x P/S is framed as good value relative to an industry average of 2.8x. The fair P/S ratio estimate of 3.1x is higher again, which points to a level the market could move towards if revenue trends and business execution line up with expectations. HIVE Digital Technologies therefore sits in a middle ground, priced richer than close peers on sales yet below both the wider industry average and the estimated fair multiple.

Explore the SWS fair ratio for HIVE Digital Technologies

Result: Preferred multiple of Price-to-Sales of 2.2x (ABOUT RIGHT)

However, the ongoing Swedish tax dispute and the recent net loss at HIVE Digital Technologies could still shift sentiment and challenge confidence in current revenue-based valuations.

Find out about the key risks to this HIVE Digital Technologies narrative.

Next Steps

With a mixed picture around HIVE Digital Technologies, does the balance of risk and reward feel comfortable enough for your portfolio today, or not? Take a closer look at how the positives stack up against the concerns by reviewing the 1 key reward and 4 important warning signs

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.