Affirm Holdings Stock Return On Equity
| AFRM Stock | USD 69.35 2.80 4.21% |
Affirm Holdings fundamentals help investors to digest information that contributes to Affirm Holdings' financial success or failures. It also enables traders to predict the movement of Affirm Stock. The fundamental analysis module provides a way to measure Affirm Holdings' intrinsic value by examining its available economic and financial indicators, including the cash flow records, the balance sheet account changes, the income statement patterns, and various microeconomic indicators and financial ratios related to Affirm Holdings stock.
| Last Reported | Projected for Next Year | ||
| Return On Equity | (0.19) | (0.18) |
Affirm | Return On Equity |
Affirm Holdings Company Return On Equity Analysis
Affirm Holdings' Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
Current Affirm Holdings Return On Equity | -0.17 |
Most of Affirm Holdings' fundamental indicators, such as Return On Equity, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, Affirm Holdings is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.
Affirm Return On Equity Driver Correlations
Understanding the fundamental principles of building solid financial models for Affirm Holdings is extremely important. It helps to project a fair market value of Affirm Stock properly, considering its historical fundamentals such as Return On Equity. Since Affirm Holdings' main accounts across its financial reports are all linked and dependent on each other, it is essential to analyze all possible correlations between related accounts. However, instead of reviewing all of Affirm Holdings' historical financial statements, investors can examine the correlated drivers to determine its overall health. This can be effectively done using a conventional correlation matrix of Affirm Holdings' interrelated accounts and indicators.
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For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
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Affirm Total Stockholder Equity
Total Stockholder Equity |
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Based on the latest financial disclosure, Affirm Holdings has a Return On Equity of -0.1652. This is 98.63% lower than that of the Professional Services sector and significantly lower than that of the Industrials industry. The return on equity for all United States stocks is 46.71% lower than that of the firm.
Affirm Return On Equity Peer Comparison
Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses Affirm Holdings' direct or indirect competition against its Return On Equity to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of Affirm Holdings could also be used in its relative valuation, which is a method of valuing Affirm Holdings by comparing valuation metrics of similar companies.Affirm Holdings is currently under evaluation in return on equity category among its peers.
Affirm Holdings ESG Sustainability
Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Affirm Holdings' sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Affirm Holdings' managers, analysts, and investors.Environmental | Governance | Social |
Affirm Fundamentals
| Return On Equity | -0.17 | ||||
| Return On Asset | -0.0359 | ||||
| Profit Margin | (0.18) % | ||||
| Operating Margin | (0.19) % | ||||
| Current Valuation | 25.9 B | ||||
| Shares Outstanding | 271.92 M | ||||
| Shares Owned By Insiders | 4.85 % | ||||
| Shares Owned By Institutions | 78.50 % | ||||
| Number Of Shares Shorted | 18.34 M | ||||
| Price To Book | 7.37 X | ||||
| Price To Sales | 8.28 X | ||||
| Revenue | 2.32 B | ||||
| Gross Profit | 1.01 B | ||||
| EBITDA | (2.23 M) | ||||
| Net Income | (517.76 M) | ||||
| Cash And Equivalents | 1.56 B | ||||
| Cash Per Share | 5.38 X | ||||
| Total Debt | 6.61 B | ||||
| Debt To Equity | 1.58 % | ||||
| Current Ratio | 19.48 X | ||||
| Book Value Per Share | 9.03 X | ||||
| Cash Flow From Operations | 450.14 M | ||||
| Short Ratio | 2.14 X | ||||
| Earnings Per Share | (1.41) X | ||||
| Price To Earnings To Growth | 0.17 X | ||||
| Target Price | 52.36 | ||||
| Number Of Employees | 2.01 K | ||||
| Beta | 3.48 | ||||
| Market Capitalization | 20.9 B | ||||
| Total Asset | 9.52 B | ||||
| Retained Earnings | (3.11 B) | ||||
| Working Capital | 8.08 B | ||||
| Net Asset | 9.52 B |
About Affirm Holdings Fundamental Analysis
The Macroaxis Fundamental Analysis modules help investors analyze Affirm Holdings's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Affirm Holdings using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Affirm Holdings based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
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Try AI Portfolio ArchitectCheck out Affirm Holdings Piotroski F Score and Affirm Holdings Altman Z Score analysis. To learn how to invest in Affirm Stock, please use our How to Invest in Affirm Holdings guide.You can also try the Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Is Data Processing & Outsourced Services space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Affirm Holdings. If investors know Affirm will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Affirm Holdings listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share (1.41) | Revenue Per Share 8.055 | Quarterly Revenue Growth 0.407 | Return On Assets (0.04) | Return On Equity (0.17) |
The market value of Affirm Holdings is measured differently than its book value, which is the value of Affirm that is recorded on the company's balance sheet. Investors also form their own opinion of Affirm Holdings' value that differs from its market value or its book value, called intrinsic value, which is Affirm Holdings' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Affirm Holdings' market value can be influenced by many factors that don't directly affect Affirm Holdings' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Affirm Holdings' value and its price as these two are different measures arrived at by different means. Investors typically determine if Affirm Holdings is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Affirm Holdings' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.