Remitly (RELY) Valuation Check After Q3 Beat, Slower Growth Guidance and Rising Credit Risk Concerns

Remitly Global (RELY) cleared the bar on third quarter revenue and customer growth, yet the stock slipped as guidance pointed to slower revenue momentum, a thinner take rate, and rising credit concerns.

See our latest analysis for Remitly Global.

That reaction comes on top of a tough run. The latest $12.93 share price reflects a steep year to date share price decline, while the three year total shareholder return is still comfortably positive, suggesting long term believers are not capitulating yet.

If this reset in expectations has you rethinking your watchlist, it could be a good moment to explore fast growing stocks with high insider ownership for other growth stories backed by committed insiders.

With revenue still growing and the share price now sitting well below analyst targets, the reset raises a key question for investors: is Remitly now undervalued, or is the market correctly pricing in slower growth ahead?

Most Popular Narrative Narrative: 39.9% Undervalued

With the narrative fair value at $21.50 versus a $12.93 last close, the market is pricing in far less upside than this roadmap implies.

The strategic launch of stablecoin functionality and multicurrency wallets positions Remitly to capitalize on the accelerating adoption of digital financial services and rising global smartphone penetration, which should drive higher customer acquisition, improve retention, and diversify revenue streams. Agentic AI capabilities embedded in customer acquisition channels (e.g., WhatsApp) and support functions facilitate migration from offline to online remittances, unlock operational efficiencies, reduce cost to serve, and should widen net margins as digital adoption in emerging markets accelerates.

Read the complete narrative.

Curious how this combination of faster revenue growth, richer margins, and a premium earnings multiple all fit together into one price target playbook? Read on.

Result: Fair Value of $21.50 (UNDERVALUED)

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

However, intensifying competition and tighter stablecoin regulation could pressure Remitly's fees, slow customer growth, and challenge the optimistic re-rating embedded in this narrative.

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

Another View: Rich On Earnings Multiples

There is a catch. On earnings, Remitly trades at about 128.8 times profits, far above the US diversified financials average of 13.7 times and a fair ratio of 29 times. If sentiment cools or growth underdelivers, that gap could close fast. Which way do you think it snaps?

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

Build Your Own Remitly Global Narrative

If you see the numbers differently or would rather dig into the data yourself, you can build a personalized thesis in minutes with 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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