Bakkt Holdings (BKKT): Evaluating the Valuation After Strategic Shift to Crypto Infrastructure and Board Reshuffle

Bakkt Holdings (BKKT) shares have soared after the company sharpened its focus on crypto custody, stablecoin payments, and treasury management. This follows the sale of its loyalty rewards business and recent board changes.

See our latest analysis for Bakkt Holdings.

Bakkt’s sharpened focus has breathed new life into its stock, with a notable short-term rally fueled by the shift toward digital assets and a well-received board appointment. While the 1-year total shareholder return sits at 3.6%, recent price momentum suggests optimism is building as investors warm up to its reset strategy and modest valuation.

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With Bakkt’s shares exploding higher and analysts touting both new strategy and leadership, the question remains: is the company’s recent success a sign the stock is still undervalued, or is the market already factoring in the next phase of growth?

Price-to-Sales of 0.2x: Is it justified?

Bakkt Holdings trades at just 0.2 times sales, significantly lower than both peer and industry averages, and the stock’s recent rally puts its valuation under the spotlight.

The price-to-sales ratio gives investors a sense of how much they are paying for each dollar of the company’s revenue, especially useful when companies are unprofitable or in the early stages of growth. For Bakkt, this measure reveals that the market is currently valuing its revenues far below the norm for the sector.

Notably, peers and industry companies carry average price-to-sales ratios above 4x, while Bakkt’s sits at a fraction of that. This suggests its shares are meaningfully discounted versus rivals in the US Capital Markets space. Regression analysis suggests a fair price-to-sales ratio of 0.6x for Bakkt, highlighting even more upside potential should the market adjust its expectations.

Explore the SWS fair ratio for Bakkt Holdings

Result: Price-to-Sales of 0.2x (UNDERVALUED)

However, revenue growth remains under pressure, and Bakkt’s share price already hovers near analyst targets. This presents meaningful risks if momentum stalls.

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

Build Your Own Bakkt Holdings Narrative

If this perspective doesn't fully align with your own or you want to take a hands-on approach, you can craft your own insights on Bakkt Holdings in just a few minutes, so why not Do it your way

A great starting point for your Bakkt 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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