Affirm Holdings Gross Profit vs. Price To Book

AFRM Stock  USD 66.32  2.50  3.63%   
Based on Affirm Holdings' profitability indicators, Affirm Holdings may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in January. Profitability indicators assess Affirm Holdings' ability to earn profits and add value for shareholders.
 
Gross Profit  
First Reported
2019-09-30
Previous Quarter
570 M
Current Value
469 M
Quarterly Volatility
142.3 M
 
Covid
At this time, Affirm Holdings' Sales General And Administrative To Revenue is very stable compared to the past year. As of the 11th of December 2024, Operating Cash Flow Sales Ratio is likely to grow to 0.20, while Price To Sales Ratio is likely to drop 3.78. At this time, Affirm Holdings' Income Tax Expense is very stable compared to the past year. As of the 11th of December 2024, Net Income Per E B T is likely to grow to 1.10, though Accumulated Other Comprehensive Income is likely to grow to (20.5 M).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.650.6362
Fairly Up
Very volatile
For Affirm Holdings profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Affirm Holdings to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Affirm Holdings utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Affirm Holdings's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Affirm Holdings over time as well as its relative position and ranking within its peers.
  

Affirm Holdings' Revenue Breakdown by Earning Segment

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To learn how to invest in Affirm Stock, please use our How to Invest in Affirm Holdings guide.
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.

Affirm Holdings Price To Book vs. Gross Profit Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Affirm Holdings's current stock value. Our valuation model uses many indicators to compare Affirm Holdings value to that of its competitors to determine the firm's financial worth.
Affirm Holdings is number one stock in gross profit category among its peers. It also is number one stock in price to book category among its peers . The ratio of Gross Profit to Price To Book for Affirm Holdings is about  126,535,780 . At this time, Affirm Holdings' Gross Profit is very stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value Affirm Holdings by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

Affirm Price To Book vs. Gross Profit

Gross Profit is the most basic measure of business operational efficiency. It is simply the difference between sales revenue and the cost associated with making a product or providing a service. It is calculated before deducting administrative expenses, taxes, and interest payments.

Affirm Holdings

Gross Profit

 = 

Revenue

-

Cost of Revenue

 = 
1.01 B
Gross Profit varies significantly from one sector to another and tells an investor how much money a business would have made if it didn't have to pay any overhead expenses such as salary, taxes, or rent.
Price to Book (P/B) ratio is used to relate a company book value to its current market price. A high P/B ratio indicates that investors expect executives to generate more returns on their investments from a given set of assets. Book value is the accounting value of assets minus liabilities.

Affirm Holdings

P/B

 = 

MV Per Share

BV Per Share

 = 
7.96 X
Price to Book ratio is mostly used in financial services industries where assets and liabilities are typically represented by dollars. Although low Price to Book ratio generally implies that the firm is undervalued, it is often a good indicator that the company may be in financial or managerial distress and should be investigated more carefully.

Affirm Price To Book Comparison

Affirm Holdings is currently under evaluation in price to book category among its peers.

Affirm Holdings Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Affirm Holdings, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Affirm Holdings will eventually generate negative long term returns. The profitability progress is the general direction of Affirm Holdings' change in net profit over the period of time. It can combine multiple indicators of Affirm Holdings, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-21.6 M-20.5 M
Net Interest Income-344.3 M-327 M
Interest Income278.4 M186.7 M
Operating Income-615.8 M-646.6 M
Net Loss-517.8 M-543.6 M
Income Before Tax-515.5 M-541.3 M
Total Other Income Expense Net100.3 M61.9 M
Net Loss-886.8 M-842.5 M
Net Loss-517.8 M-543.6 M
Income Tax Expense2.2 M2.3 M
Non Operating Income Net Other243.4 M194.1 M
Change To Netincome379.3 M214.9 M
Net Loss(1.67)(1.75)
Income Quality(0.87)(0.83)
Net Income Per E B T 1.00  1.10 

Affirm Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Affirm Holdings. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Affirm Holdings position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Affirm Holdings' important profitability drivers and their relationship over time.

Use Affirm Holdings in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Affirm Holdings position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Affirm Holdings will appreciate offsetting losses from the drop in the long position's value.

Affirm Holdings Pair Trading

Affirm Holdings Pair Trading Analysis

The ability to find closely correlated positions to Affirm Holdings could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Affirm Holdings when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Affirm Holdings - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Affirm Holdings to buy it.
The correlation of Affirm Holdings is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Affirm Holdings moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Affirm Holdings moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Affirm Holdings can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Affirm Holdings position

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When determining whether Affirm Holdings is a strong investment it is important to analyze Affirm Holdings' competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Affirm Holdings' future performance. For an informed investment choice regarding Affirm Stock, refer to the following important reports:
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To learn how to invest in Affirm Stock, please use our How to Invest in Affirm Holdings guide.
You can also try the Transaction History module to view history of all your transactions and understand their impact on performance.
To fully project Affirm Holdings' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Affirm Holdings at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Affirm Holdings' income statement, its balance sheet, and the statement of cash flows.
Potential Affirm Holdings investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Affirm Holdings investors may work on each financial statement separately, they are all related. The changes in Affirm Holdings's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Affirm Holdings's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.