Affirm Holdings (AFRM): Assessing Valuation After Upbeat Analyst Revisions and Earnings Surprises

Affirm Holdings (AFRM) has caught investor attention lately, as earnings estimates continue to move higher and the company delivers revenue and earnings results above expectations. These shifts are fueling new conversations in the market.

See our latest analysis for Affirm Holdings.

Affirm’s share price has seen some ups and downs this year. After a solid run earlier in 2025, momentum faded with a 5% dip over the last month and a 22% share price pullback in the past 90 days. However, the current share price of $68.80 still leaves shareholders with a 10% year-to-date gain. Despite the recent volatility, Affirm’s long-term story remains impressive, with a 3-year total shareholder return of over 370% showing that optimism about its growth prospects has paid off for those who stuck around.

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With performance and expectations both on the rise, the key question becomes whether Affirm's current price truly reflects its future potential or if there is still room for investors to benefit from a market that may be underestimating its growth. Is this a buying opportunity, or is all the good news already priced in?

Most Popular Narrative: 25.9% Undervalued

Affirm Holdings' most closely watched narrative sets a fair value around $93 per share, which is substantially above the latest closing price of $68.80. The difference between market price and consensus fair value is driving debate over what could fuel further upside.

Affirm's embrace of point-of-sale and wallet integrations (such as with Stripe Terminal and other PSPs) unlocks large untapped offline retail and cross-platform opportunities. This aligns Affirm's growth trajectory with broader industry trends in digitization and embedded finance, with a probable positive impact on future revenue scalability and market share.

Read the complete narrative.

Want to know the numbers behind this bullish outlook? Analysts are banking on surprisingly bold projections for future revenue, earnings, and expansion opportunities. Find out which game-changing assumptions power this valuation and what makes it stand out from industry peers.

Result: Fair Value of $92.83 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, risks remain, including potential loss of key merchant partners or mounting competitive pressures. Either of these factors could slow Affirm’s impressive growth trajectory.

Find out about the key risks to this Affirm Holdings narrative.

Another View: What Do Market Ratios Say?

Looking at Affirm Holdings through the lens of price-to-earnings, things look much less optimistic. The current P/E ratio stands at 97.4x, which is far higher than both the industry average of 13.6x and the peer average of 27.9x. Even compared to a fair ratio of 29.7x, Affirm’s valuation appears stretched. This wide gap suggests a valuation risk for investors if market enthusiasm cools. Could expectations be running ahead of real business momentum?

See what the numbers say about this price — find out in our valuation breakdown.

Build Your Own Affirm Holdings Narrative

If you want to dig into the numbers and reach your own conclusions, our platform lets you analyze the data and shape your personal story in just a few minutes. Do it your way

A great starting point for your Affirm Holdings research is our analysis highlighting 2 key rewards and 3 important warning signs that could impact your investment decision.

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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.

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