Shares of Quantum Computing Inc. (QUBT) experienced a sharp decline on Thursday, plummeting 5.06% during intraday trading. This significant drop comes on the heels of recent gains and growing concerns about the company's valuation in the rapidly evolving quantum computing sector.

The sell-off appears to be driven by a combination of factors. Recent analysis has highlighted that QUBT's price-to-book ratio of 12x is substantially higher than both its direct peers and the broader US Tech sector average. This premium valuation suggests that the market has been pricing in extremely optimistic future growth prospects, which may now be facing scrutiny from investors.

Adding to the downward pressure, industry experts have been cautioning that the real-world impact of quantum computing could be years or even decades away. This long-term horizon for practical applications is prompting a reassessment of near-term expectations for companies like Quantum Computing Inc. The company's persistent net losses and exceptionally high valuation compared to industry peers are raising red flags for some investors, particularly in light of the uncertain timeline for quantum computing commercialization.

While Quantum Computing Inc. had seen a notable gain of 26% over the past month, contributing to its year-to-date growth, today's sharp decline suggests a potential shift in investor sentiment. As the market continues to grapple with the long-term potential of quantum computing against the backdrop of current technological limitations and economic realities, companies in this space may face increased volatility and scrutiny of their valuations.