Toast Valuation

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

Valuation Score

1/6

Valuation Score 1/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

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

Below Fair Value: TOST ($43) is trading above our estimate of fair value ($26.68)

Significantly Below Fair Value: TOST is trading above our estimate of fair value.


Key Valuation Metric

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

Key metric: As TOST is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for TOST. This is calculated by dividing TOST's market cap by their current revenue.
What is TOST's PS Ratio?
PS Ratio5.2x
SalesUS$4.66b
Market CapUS$24.28b

Price to Sales Ratio vs Peers

How does TOST's PS Ratio compare to its peers?

The above table shows the PS ratio for TOST vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average5.2x
AFRM Affirm Holdings
8.6x19.7%US$20.9b
CPAY Corpay
6.9x9.9%US$26.5b
GPN Global Payments
3x3.1%US$29.8b
FOUR Shift4 Payments
2.5x19.5%US$7.7b
TOST Toast
5.2x17.3%US$24.3b

Price-To-Sales vs Peers: TOST is good value based on its Price-To-Sales Ratio (5.2x) compared to the peer average (5.2x).


Price to Sales Ratio vs Industry

How does TOST's PS Ratio compare vs other companies in the US Diversified Financial Industry?

15 CompaniesPrice / SalesEstimated GrowthMarket Cap
FMCC Federal Home Loan Mortgage
0.5x-2.9%US$9.99b
RKT Rocket Companies
0.5x23.3%US$2.00b
UWMC UWM Holdings
0.4x9.5%US$971.17m
LDI loanDepot
0.5x18.5%US$456.54m
TOST 5.2xIndustry Avg. 2.8xNo. of Companies15PS0246810+
15 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: TOST is expensive based on its Price-To-Sales Ratio (5.2x) compared to the US Diversified Financial industry average (2.8x).


Price to Sales Ratio vs Fair Ratio

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

TOST PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio5.2x
Fair PS Ratio2.9x

Price-To-Sales vs Fair Ratio: TOST is expensive based on its Price-To-Sales Ratio (5.2x) compared to the estimated Fair Price-To-Sales Ratio (2.9x).


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 TOST forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$43.00
US$38.41
-10.7%
18.0%US$50.00US$25.00n/a25
Nov ’25US$30.98
US$29.58
-4.5%
11.7%US$35.00US$23.00n/a24
Oct ’25US$28.56
US$27.99
-2.0%
11.9%US$33.00US$19.00n/a23
Sep ’25US$24.86
US$27.67
+11.3%
11.7%US$33.00US$19.00n/a22
Aug ’25US$25.25
US$28.00
+10.9%
11.9%US$33.00US$19.00n/a23
Jul ’25US$25.46
US$27.44
+7.8%
12.5%US$32.60US$19.00n/a23
Jun ’25US$24.23
US$27.44
+13.2%
12.5%US$32.60US$19.00n/a23
May ’25US$23.00
US$24.52
+6.6%
17.9%US$32.00US$17.00n/a22
Apr ’25US$24.33
US$23.74
-2.4%
19.1%US$32.00US$15.00n/a21
Mar ’25US$23.38
US$22.43
-4.1%
15.6%US$31.00US$15.00n/a20
Feb ’25US$18.55
US$19.23
+3.7%
16.2%US$24.00US$12.00n/a20
Jan ’25US$18.26
US$18.61
+1.9%
17.1%US$24.00US$12.00n/a19
Dec ’24US$15.32
US$18.68
+21.9%
16.3%US$22.00US$12.00n/a18
Nov ’24US$16.21
US$23.22
+43.3%
17.5%US$31.00US$16.00US$30.9818
Oct ’24US$18.73
US$25.50
+36.1%
13.6%US$31.00US$19.00US$28.5616
Sep ’24US$21.98
US$25.66
+16.7%
12.3%US$31.00US$19.00US$24.8618
Aug ’24US$21.79
US$24.22
+11.2%
12.7%US$30.00US$18.00US$25.2518
Jul ’24US$22.57
US$23.85
+5.7%
13.0%US$30.00US$18.00US$25.4617
Jun ’24US$21.58
US$23.82
+10.4%
12.9%US$30.00US$18.00US$24.2319
May ’24US$17.52
US$22.67
+29.4%
15.7%US$30.00US$16.00US$23.0018
Apr ’24US$17.75
US$23.50
+32.4%
14.2%US$30.00US$16.00US$24.3317
Mar ’24US$18.41
US$23.97
+30.2%
11.8%US$30.00US$19.00US$23.3816
Feb ’24US$23.15
US$24.69
+6.6%
13.8%US$32.00US$19.00US$18.5516
Jan ’24US$18.03
US$25.67
+42.4%
12.4%US$32.00US$21.00US$18.2615
Dec ’23US$18.34
US$25.67
+39.9%
12.4%US$32.00US$21.00US$15.3215
Nov ’23US$22.01
US$24.60
+11.8%
9.9%US$29.00US$20.50US$16.2115

Analyst Forecast: Target price is lower than the current share price.


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