We’ve recently updated our valuation analysis.

LendingClub Valuation

Is LC undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for LC?

Other financial metrics that can be useful for relative valuation.

LC key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.05x
Enterprise Value/EBITDA0.2x
PEG Ratio-0.3x

Price to Earnings Ratio vs Peers

How does LC's PE Ratio compare to its peers?

The above table shows the PE ratio for LC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average9.7x
GDOT Green Dot
20x-7.3%US$954.7m
PRG PROG Holdings
10.7x10.0%US$1.1b
FINV FinVolution Group
4.5x16.1%US$1.6b
ECPG Encore Capital Group
3.7x-48.6%US$1.3b
LC LendingClub
3.6x-11.2%US$1.0b

Price-To-Earnings vs Peers: LC is good value based on its Price-To-Earnings Ratio (3.6x) compared to the peer average (9.7x).


Price to Earnings Ratio vs Industry

How does LC's PE Ratio compare vs other companies in the US Consumer Finance Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a4.1%
n/an/an/a

Price-To-Earnings vs Industry: LC is good value based on its Price-To-Earnings Ratio (3.6x) compared to the US Consumer Finance industry average (5.6x)


Price to Earnings Ratio vs Fair Ratio

What is LC's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

LC PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio3.6x
Fair PE Ratio5.7x

Price-To-Earnings vs Fair Ratio: LC is good value based on its Price-To-Earnings Ratio (3.6x) compared to the estimated Fair Price-To-Earnings Ratio (5.7x).


Share Price vs Fair Value

What is the Fair Price of LC when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: LC ($9.8) is trading below our estimate of fair value ($19)

Significantly Below Fair Value: LC is trading below fair value by more than 20%.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst LC forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$9.80
US$13.57
+38.5%
27.5%US$20.00US$9.00n/a7
Jan ’24US$8.80
US$16.57
+88.3%
19.3%US$20.00US$12.00n/a7
Dec ’23US$10.24
US$16.29
+59.0%
18.2%US$20.00US$12.00n/a7
Nov ’23US$10.34
US$16.29
+57.5%
18.2%US$20.00US$12.00n/a7
Oct ’23US$11.05
US$22.14
+100.4%
36.1%US$40.00US$15.00n/a7
Sep ’23US$12.92
US$24.50
+89.6%
30.0%US$40.00US$18.00n/a6
Aug ’23US$13.92
US$23.86
+71.4%
29.2%US$40.00US$18.00n/a7
Jul ’23US$11.83
US$29.79
+151.8%
46.1%US$60.00US$16.00n/a7
Jun ’23US$15.39
US$31.21
+102.8%
40.7%US$60.00US$18.00n/a7
May ’23US$15.25
US$31.21
+104.7%
40.7%US$60.00US$18.00n/a7
Apr ’23US$15.65
US$34.50
+120.4%
37.2%US$60.00US$22.00n/a7
Mar ’23US$17.69
US$35.21
+99.1%
35.3%US$60.00US$22.00n/a7
Feb ’23US$19.43
US$35.93
+84.9%
34.1%US$60.00US$22.00n/a7
Jan ’23US$24.18
US$43.17
+78.5%
25.0%US$60.00US$30.00US$8.806
Dec ’22US$30.81
US$44.83
+45.5%
24.4%US$60.00US$30.00US$10.246
Nov ’22US$47.61
US$44.83
-5.8%
24.4%US$60.00US$30.00US$10.346
Oct ’22US$28.00
US$26.58
-5.1%
26.3%US$35.00US$14.00US$11.056
Sep ’22US$31.12
US$26.58
-14.6%
26.3%US$35.00US$14.00US$12.926
Aug ’22US$24.40
US$24.90
+2.0%
25.9%US$33.50US$14.00US$13.925
Jul ’22US$17.53
US$17.20
-1.9%
28.3%US$25.00US$11.00US$11.835
Jun ’22US$16.09
US$16.60
+3.2%
28.2%US$25.00US$11.00US$15.395
May ’22US$15.39
US$16.60
+7.9%
28.2%US$25.00US$11.00US$15.255
Apr ’22US$16.40
US$14.80
-9.8%
36.9%US$25.00US$9.00US$15.655
Mar ’22US$11.81
US$9.50
-19.6%
30.2%US$14.00US$6.00US$17.696
Feb ’22US$11.24
US$9.50
-15.5%
30.2%US$14.00US$6.00US$19.436
Jan ’22US$10.56
US$9.33
-11.6%
30.1%US$14.00US$6.00US$24.186

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.


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