Remitly (RELY): Evaluating Valuation After Strong Results and Mixed Forward Outlook Spark Market Shift

Remitly Global (RELY) released its third quarter results and raised guidance for 2025. However, the market focused on signs that revenue growth may slow next year, triggering a sharp drop in the stock price.

See our latest analysis for Remitly Global.

After rallying for most of the year, Remitly’s share price has tumbled following third-quarter earnings even as revenue grew and guidance was raised. The 7-day share price return currently sits at -20.76%, and the total shareholder return over the past year is -34.82%. Despite a solid operational story, investor sentiment has clearly shifted as expectations for future growth moderate.

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With the share price sharply lower despite robust quarterly numbers and raised 2025 guidance, investors are left to wonder if Remitly is now trading below its intrinsic value or if the market is simply anticipating slower growth ahead.

Most Popular Narrative: 48.8% Undervalued

Remitly Global’s most widely followed narrative sees a fair value much higher than the current $12.71 share price, painting a sharply different picture from market sentiment.

Significant expansion of the addressable market through Remitly Business and the Remitly One membership platform (including Wallet and Flex) directly taps into the ongoing global migration and the rise of cross-border economic activity. This is likely to support sustained, above-market revenue growth and increase ARPU over the long term.

Read the complete narrative.

Want to know what’s fueling such a bold valuation? This narrative hinges on ambitious earnings, revenue growth, and margins, along with a controversial future profit multiple. Intrigued by the numbers and optimism driving this fair value? The financial logic behind these projections will surprise you.

Result: Fair Value of $24.83 (UNDERVALUED)

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

However, risks such as intensifying competition and evolving regulations could present challenges to Remitly’s margins and could slow its projected revenue growth trajectory.

Find out about the key risks to this Remitly Global narrative.

Another View: Peer Comparisons Raise Caution

While the previous fair value estimate suggests Remitly is deeply undervalued, comparing its price-to-earnings ratio paints a different picture. At 126.6 times earnings, Remitly trades far above the industry average of 13.1 and the estimated fair ratio of 34.9. This signals a premium that investors can’t ignore. With such a large gap, is Remitly due for a market adjustment or is long-term growth strong enough to justify its lofty multiple?

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

Build Your Own Remitly Global Narrative

If you have a different perspective or want to dig deeper into Remitly’s story yourself, you can shape your own view in just a few minutes: Do it your way

A good starting point is our analysis highlighting 2 key rewards investors are optimistic about regarding Remitly Global.

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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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