A Look at Dave (DAVE) Valuation After Blowout Q3 Results and Upgraded 2025 Guidance

Dave (DAVE) just delivered impressive third quarter earnings, with revenue and net income jumping significantly from last year. The company also lifted its outlook for 2025, signaling greater confidence from management.

See our latest analysis for Dave.

Dave’s impressive earnings and raised 2025 outlook have clearly energized investors, with the share price up 20.7% over the past month and soaring 172.8% year-to-date. That momentum is even more striking in the long run, as total shareholder return has reached 297.3% in the past year and an exceptional 2,199.3% over three years, highlighting a remarkable turnaround and renewed growth narrative.

If this wave of momentum has you looking for more high-potential stories, now is your chance to discover fast growing stocks with high insider ownership

With such strong financial momentum and bullish analyst targets, some may wonder if Dave is still undervalued at current levels or if its soaring share price already reflects all the future growth ahead.

Most Popular Narrative: 17% Undervalued

Compared to Dave's last close of $235.45, the most popular narrative estimates fair value at $285. This gap points to a strong case for more upside, with recent catalysts and ambitious assumptions driving a bullish outlook among analysts.

“Enhanced monetization from fee structure changes, including a successful rollout of a $3 monthly subscription fee (with no measurable negative impact on retention), offers meaningful ARPU and LTV uplift. This is further supported by secular demand for transparent, low-fee banking alternatives, and directly supports revenue growth and margin expansion.”

Read the complete narrative.

Want to know what’s fueling such a bold valuation? One key outlook is aggressive revenue growth layered with margin improvements that rival fast-growing fintechs. Curious which major financial drivers underpin that optimism? Dive in to uncover which surprising assumptions power this fair value and why Dave could keep racing higher.

Result: Fair Value of $285 (UNDERVALUED)

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

However, continued regulatory scrutiny of fee-based models and intensifying competition from larger fintechs could quickly disrupt Dave’s growth narrative.

Find out about the key risks to this Dave narrative.

Build Your Own Dave Narrative

If you'd like to challenge these takes or dig deeper into Dave's numbers yourself, you can easily shape your own perspective and narrative in just a few minutes with Do it your way.

A great starting point for your Dave research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.

Ready to Unlock More Investing Opportunities?

Don’t settle for one great stock when there’s a world of high-potential opportunities waiting. Access unique market angles and stay ahead of the crowd with these handpicked screens:

• Capture tomorrow’s leaders and maximize your returns by evaluating these 881 undervalued stocks based on cash flows that currently trade below their intrinsic worth.
• Tap into game-changing innovation by exploring these 25 AI penny stocks driving the next wave of artificial intelligence breakthroughs.
• Accelerate your income growth by checking out these 16 dividend stocks with yields > 3% that consistently deliver solid yields above 3%.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com