Bullish (BLSH): Evaluating Valuation After Record Q3 Revenue and Profitability, Despite Declining Share Price

Bullish (BLSH) delivered record revenue and a return to profitability in its third-quarter report, helped by increasing institutional flows, expanded U.S. spot trading, and growth in its recently launched crypto options products.

See our latest analysis for Bullish.

It’s been a whirlwind for Bullish this year. Despite headline-making revenue growth, fresh product launches, and big-name institutional investors piling in, the share price return is down over 43% year-to-date. The 1-day share price pop after earnings signals some optimism, but overall momentum remains under pressure as the market weighs the risks and long-term potential for newly public crypto exchanges.

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With shares languishing despite a surge in revenue and institutional backing, investors face a critical question: is Bullish genuinely undervalued after its post-IPO slide, or has the market accurately priced in its future growth?

Price-to-Sales of 29.3x: Is it justified?

Bullish shares recently closed at $38.60, but the company's current price-to-sales ratio of 29.3x signals the market is putting a steep premium on every dollar of revenue, far above peer averages.

The price-to-sales ratio (P/S) measures how much investors are paying for each dollar of a company's revenue. It is especially relevant for rapidly evolving financial platforms like Bullish, which are still scaling profitability and relying on fast top-line growth to excite the market.

With Bullish's P/S ratio significantly above the peer average of 4.5x and the US Capital Markets industry average of 3.7x, it is clear investors are pricing in aggressive future performance. However, such a multiple requires exceptional growth or profitability to be warranted, and there is currently no data to support a different "fair" ratio level that the market could move toward.

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

Result: Price-to-Sales of 29.3x (OVERVALUED)

However, lingering losses and a high premium leave Bullish exposed if revenue growth slows or if competition intensifies, which could potentially challenge the current valuation narrative.

Find out about the key risks to this Bullish narrative.

Build Your Own Bullish Narrative

If you see the story differently or want to dig deeper into the numbers yourself, you can craft your own view in just minutes. Do it your way

A great starting point for your Bullish research is our analysis highlighting 1 key reward 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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