Kaspi.kz (NasdaqGS:KSPI) Valuation in Focus Following Alipay+ Partnership Expanding Cross-Border Payment Access

Kaspi.kz (NasdaqGS:KSPI) just made a move that could mean a lot for its growth story. The company has teamed up with Alipay+, letting users of a dozen major payment apps make QR payments at shops, restaurants, and even smaller merchants all across Kazakhstan. For investors, this partnership grabs attention, given how it taps into the flow of international visitors and expands the reach of Kaspi’s payment platform far beyond its local roots.

Over the past year, Kaspi.kz’s share price has been through some ups and downs. The stock is down around 25%, despite double-digit gains over the past three months, which may be signaling a shift in sentiment. Earlier in the year, the market pulled back, but momentum has re-emerged recently, possibly on the back of new partnerships like this one. Kaspi’s core financials show healthy revenue and net income growth in the last year, but clearly the market is still sizing up both opportunity and risk.

So following this turnaround in the past quarter and the buzz around Alipay+, is Kaspi.kz an undervalued growth play, or is the market already factoring in what’s next?

Most Popular Narrative: 16.7% Undervalued

According to community narrative, Kaspi.kz is seen as undervalued. Its current valuation reflects strong confidence in its digital ecosystem growth, international expansion strategy, and potential for higher earnings over time.

Strong growth in Kaspi.kz's e-Grocery, travel, and new verticals such as restaurants reflects increasing digital adoption and rising consumer spending power in Kazakhstan. This expands the addressable market and drives higher transaction volumes and revenue growth.

Want to know the playbook behind this bullish price target? The narrative hinges on Kaspi.kz’s digital ecosystem, a projected financial leap, and global ambitions that could influence the fintech landscape. Interested in the bold growth assumptions that are included in this valuation? Explore the numbers and catalysts that analysts believe could positively impact share prices.

Result: Fair Value of $111.07 (UNDERVALUED)

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

However, rising competition and unpredictable regulatory shifts in new markets could threaten Kaspi.kz’s growth outlook and challenge the current bullish narrative.

Find out about the key risks to this Kaspi.kz narrative.

Another View: What Does the SWS DCF Model Indicate?

Using our DCF model offers an alternative perspective on Kaspi.kz's valuation. This method, which projects future cash flows, also suggests shares are undervalued. Does this add more conviction, or does it raise new questions for investors?

Look into how the SWS DCF model arrives at its fair value.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Kaspi.kz for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Build Your Own Kaspi.kz Narrative

If you have a different viewpoint or want to dig into the details on your own, it's quick and easy to shape your own outlook in just a few minutes, so why not do it your way?

A great starting point for your Kaspi.kz research is our analysis highlighting 5 key rewards and 1 important warning sign 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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