We’ve recently updated our valuation analysis.

Affirm Holdings Valuation

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

Valuation Score

2/6

Valuation Score 2/6

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales 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 AFRM?

Other financial metrics that can be useful for relative valuation.

AFRM 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/Revenue5x
Enterprise Value/EBITDA-8.8x
PEG Ration/a

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for AFRM vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPSEstimated GrowthMarket Cap
Peer Average5.7x
WNS WNS (Holdings)
3.3x10.6%US$4.0b
MMS Maximus
0.9x2.8%US$4.3b
DLO DLocal
13.1x34.4%US$5.0b
MQ Marqeta
5.3x19.7%US$3.7b
AFRM Affirm Holdings
3.3x22.0%US$4.7b

Price-To-Sales vs Peers: AFRM is good value based on its Price-To-Sales Ratio (3.3x) compared to the peer average (5.7x).


Price to Earnings Ratio vs Industry

How does AFRM's PE Ratio compare vs other companies in the US IT Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a18.8%
n/an/an/a

Price-To-Sales vs Industry: AFRM is expensive based on its Price-To-Sales Ratio (3.3x) compared to the US IT industry average (2.6x)


Price to Sales Ratio vs Fair Ratio

What is AFRM'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.

AFRM PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio3.3x
Fair PS Ratio3.6x

Price-To-Sales vs Fair Ratio: AFRM is good value based on its Price-To-Sales Ratio (3.3x) compared to the estimated Fair Price-To-Sales Ratio (3.6x).


Share Price vs Fair Value

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

Below Fair Value: Insufficient data to calculate AFRM's fair value for valuation analysis.

Significantly Below Fair Value: Insufficient data to calculate AFRM's fair value for valuation analysis.


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 AFRM forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$16.24
US$17.67
+8.8%
47.2%US$46.00US$6.00n/a19
Jan ’24US$9.67
US$18.78
+94.2%
44.7%US$46.00US$8.00n/a19
Dec ’23US$14.41
US$20.99
+45.7%
44.6%US$52.00US$10.00n/a19
Nov ’23US$19.46
US$29.72
+52.7%
35.1%US$53.00US$15.00n/a18
Oct ’23US$18.76
US$32.11
+71.2%
34.6%US$53.00US$15.00n/a18
Sep ’23US$23.16
US$34.06
+47.0%
45.0%US$80.00US$15.00n/a18
Aug ’23US$27.17
US$35.00
+28.8%
46.2%US$80.00US$15.00n/a18
Jul ’23US$17.19
US$37.19
+116.3%
43.7%US$80.00US$15.00n/a16
Jun ’23US$24.32
US$38.93
+60.1%
40.0%US$80.00US$15.00n/a15
May ’23US$28.70
US$63.79
+122.2%
23.2%US$85.00US$28.00n/a14
Apr ’23US$46.61
US$66.14
+41.9%
23.4%US$96.00US$35.00n/a14
Mar ’23US$42.36
US$78.64
+85.7%
34.6%US$140.00US$35.00n/a14
Feb ’23US$67.48
US$113.57
+68.3%
40.9%US$220.00US$55.00n/a14
Jan ’23US$100.56
US$160.38
+59.5%
20.4%US$220.00US$108.00US$9.6713
Dec ’22US$116.57
US$166.85
+43.1%
19.3%US$220.00US$110.00US$14.4113
Nov ’22US$152.66
US$132.73
-13.1%
24.1%US$175.00US$65.00US$19.4611
Oct ’22US$117.85
US$120.36
+2.1%
20.0%US$150.00US$65.00US$18.7611
Sep ’22US$96.48
US$91.73
-4.9%
27.4%US$124.00US$56.00US$23.1611
Aug ’22US$56.32
US$72.91
+29.5%
14.0%US$87.00US$55.00US$27.1711
Jul ’22US$68.37
US$74.64
+9.2%
15.6%US$90.00US$55.00US$17.1911
Jun ’22US$62.52
US$73.25
+17.2%
12.7%US$87.00US$56.00US$24.328
May ’22US$70.50
US$111.78
+58.6%
27.9%US$160.00US$78.00US$28.709
Apr ’22US$71.45
US$125.25
+75.3%
23.2%US$160.00US$78.00US$46.618
Mar ’22US$91.44
US$136.00
+48.7%
14.3%US$160.00US$108.00US$42.367

Analyst Forecast: Target price is less than 20% higher than the current share price.


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