Sofi Technologies Stock Beta
| SOFI Stock | USD 15.60 0.59 3.93% |
SoFi Technologies fundamentals help investors to digest information that contributes to SoFi Technologies' financial success or failures. It also enables traders to predict the movement of SoFi Stock. The fundamental analysis module provides a way to measure SoFi Technologies' 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 SoFi Technologies stock.
SoFi | Beta |
SoFi Technologies Company Beta Analysis
SoFi Technologies' Beta is one of the most important measures of equity market volatility. Beta can be thought of as asset elasticity or sensitivity to market. In other words, it is a number that shows the relationship of an equity instrument to the financial market in which this instrument is traded. For example, if Beta of equity is 2, it is expected to significantly outperform market when the market is going up and significantly underperform when the market is going down. Similarly, Beta of 1 indicates that an asset and market will generate similar returns over time.
Current SoFi Technologies Beta | 1.61 |
Most of SoFi Technologies' fundamental indicators, such as Beta, 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, SoFi Technologies is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.
SoFi Beta Driver Correlations
Understanding the fundamental principles of building solid financial models for SoFi Technologies is extremely important. It helps to project a fair market value of SoFi Stock properly, considering its historical fundamentals such as Beta. Since SoFi Technologies' 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 SoFi Technologies' 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 SoFi Technologies' interrelated accounts and indicators.
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In a nutshell, Beta is a measure of individual stock risk relative to the overall volatility of the stock market. and is calculated based on very sound finance theory - Capital Assets Pricing Model (CAPM).However, since Beta is calculated based on historical price movements it may not predict how a firm's stock is going to perform in the future.
| Competition |
In accordance with the recently published financial statements, SoFi Technologies has a Beta of 1.613. This is 96.71% higher than that of the Consumer Finance sector and 41.49% higher than that of the Financials industry. The beta for all United States stocks is notably lower than that of the firm.
SoFi Beta Peer Comparison
Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses SoFi Technologies' direct or indirect competition against its Beta to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of SoFi Technologies could also be used in its relative valuation, which is a method of valuing SoFi Technologies by comparing valuation metrics of similar companies.SoFi Technologies is currently under evaluation in beta category among its peers.
SoFi Technologies 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, SoFi Technologies' sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to SoFi Technologies' managers, analysts, and investors.Environmental | Governance | Social |
As the market goes up, the company is expected to outperform it. However, if the market returns are negative, SoFi Technologies will likely underperform.
SoFi Fundamentals
| Return On Equity | 0.0372 | ||||
| Return On Asset | 0.0069 | ||||
| Profit Margin | 0.09 % | ||||
| Operating Margin | 0.09 % | ||||
| Current Valuation | 17.89 B | ||||
| Shares Outstanding | 1.09 B | ||||
| Shares Owned By Insiders | 3.19 % | ||||
| Shares Owned By Institutions | 46.64 % | ||||
| Number Of Shares Shorted | 162.31 M | ||||
| Price To Book | 2.77 X | ||||
| Price To Sales | 6.72 X | ||||
| Revenue | 2.05 B | ||||
| Gross Profit | 1.21 B | ||||
| EBITDA | (300.33 M) | ||||
| Net Income | (300.74 M) | ||||
| Cash And Equivalents | 935.16 M | ||||
| Cash Per Share | 1.01 X | ||||
| Total Debt | 5.36 B | ||||
| Debt To Equity | 0.86 % | ||||
| Current Ratio | 2.24 X | ||||
| Book Value Per Share | 5.65 X | ||||
| Cash Flow From Operations | (7.23 B) | ||||
| Short Ratio | 2.87 X | ||||
| Earnings Per Share | 0.12 X | ||||
| Price To Earnings To Growth | (0.06) X | ||||
| Target Price | 10.07 | ||||
| Number Of Employees | 4.4 K | ||||
| Beta | 1.61 | ||||
| Market Capitalization | 16.93 B | ||||
| Total Asset | 30.07 B | ||||
| Retained Earnings | (1.8 B) | ||||
| Net Asset | 30.07 B |
About SoFi Technologies Fundamental Analysis
The Macroaxis Fundamental Analysis modules help investors analyze SoFi Technologies's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of SoFi Technologies using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of SoFi Technologies 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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When determining whether SoFi Technologies offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of SoFi Technologies' financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Sofi Technologies Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Sofi Technologies Stock:Check out SoFi Technologies Piotroski F Score and SoFi Technologies Altman Z Score analysis. For more detail on how to invest in SoFi Stock please use our How to Invest in SoFi Technologies guide.You can also try the Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Is Consumer Finance 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 SoFi Technologies. If investors know SoFi 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 SoFi Technologies listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share 0.12 | Revenue Per Share 2.472 | Quarterly Revenue Growth 0.341 | Return On Assets 0.0069 | Return On Equity 0.0372 |
The market value of SoFi Technologies is measured differently than its book value, which is the value of SoFi that is recorded on the company's balance sheet. Investors also form their own opinion of SoFi Technologies' value that differs from its market value or its book value, called intrinsic value, which is SoFi Technologies' 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 SoFi Technologies' market value can be influenced by many factors that don't directly affect SoFi Technologies' 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 SoFi Technologies' value and its price as these two are different measures arrived at by different means. Investors typically determine if SoFi Technologies is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, SoFi Technologies' 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.