Quantum Computing Valuation
Yorgos Vassiliou
Co-Presenters: Individual Presentation
College: College of Business and Public Management
Major: Finance
Faculty Research Mentor: Huaibing Yu
Abstract:
After Google announced the development of a refined error correction algorithm for quantum computing, retail investors are betting big on publicly traded stocks. In this study, IonQ (IONQ), Rigetti Computing (RGTI), Quantum Computing Inc. (QUBT), and D-Wave Quantum (QBTS) will be valued with financial models to assess whether they have true potential to generate future cash flows or if they are merely a bubble of market mania and speculation. The valuation process will incorporate a review of each company’s financial reports using SEC filings for revenue stream, R&D expenditure, and risk factor analysis. A reverse discounted cash flow model will be utilized to assess market expectations. The study will aim to find appropriate discount rates and terminal values to determine a fair valuation range for each company. Lastly, an overview of the standing science behind quantum computing, such as the current gate fidelity and the number of operating qubits available, will be considered to determine the progress and future potential for quantum computing technology. The findings will provide investors and analysts with a data-driven framework to quantify the investment potential of publicly traded quantum computing firms.