Affirm Holdings Valuation
| AFRM Stock | USD 57.95 0.92 1.61% |
At this time, the firm appears to be undervalued. Affirm Holdings shows a prevailing Real Value of $70.23 per share. The current price of the firm is $57.95. Our model approximates the value of Affirm Holdings from analyzing the firm fundamentals such as profit margin of 0.08 %, and Return On Equity of 0.0892 as well as examining its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Affirm Holdings' valuation include:
Price Book 5.3561 | Enterprise Value | Enterprise Value Ebitda 26.1145 | Price Sales 5.1124 | Forward PE 58.4795 |
Undervalued
Today
Please note that Affirm Holdings' price fluctuation is very steady at this time. Calculation of the real value of Affirm Holdings is based on 3 months time horizon. Increasing Affirm Holdings' time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
The fair value of the Affirm stock is determined by what a typical buyer is willing to pay for full or partial control of Affirm Holdings. Since Affirm Holdings is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Affirm Stock. However, Affirm Holdings' intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 57.95 | Real 70.23 | Target 87.42 | Hype 58.07 |
The intrinsic value of Affirm Holdings' stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Affirm Holdings' stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of Affirm Holdings helps investors to forecast how Affirm stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Affirm Holdings more accurately as focusing exclusively on Affirm Holdings' fundamentals will not take into account other important factors: Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Affirm Holdings' intrinsic value based on its ongoing forecasts of Affirm Holdings' financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Affirm Holdings' closest peers.
Affirm Holdings Cash |
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Affirm Revenue by Product
Affirm Holdings Total Value Analysis
Affirm Holdings is presently projected to have valuation of 25.93 B with market capitalization of 19 B, debt of 7.85 B, and cash on hands of 1.56 B. Please note that valuation may be misleading and is a subject to auditing or accounting errors. We encourage investors to vigilantly validate all of the Affirm Holdings fundamentals before making equity appraisal based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
25.93 B | 19 B | 7.85 B | 1.56 B |
Affirm Holdings Investor Information
About 83.0% of the company shares are held by institutions such as insurance companies. The company has Price/Earnings To Growth (PEG) ratio of 0.44. Affirm Holdings had not issued any dividends in recent years. Based on the key indicators related to Affirm Holdings' liquidity, profitability, solvency, and operating efficiency, Affirm Holdings may be sliding down financialy. It has an above-average probability of going through some form of financial hardship next quarter.Affirm Holdings Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Affirm Holdings has an asset utilization ratio of 28.91 percent. This suggests that the Company is making $0.29 for each dollar of assets. An increasing asset utilization means that Affirm Holdings is more efficient with each dollar of assets it utilizes for everyday operations.Affirm Holdings Profitability Analysis
Based on Affirm Holdings' profitability indicators, Affirm Holdings is yielding more profit at this time then in previous quarter. It has a moderate probability of reporting better profitability numbers in March. Profitability indicators assess Affirm Holdings' ability to earn profits and add value for shareholders.Net Income | First Reported 2019-09-30 | Previous Quarter 80.7 M | Current Value 129.6 M | Quarterly Volatility 126.7 M |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.48 | 0.61 |
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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 Earnings per Share Projection vs Actual
By analyzing Affirm Holdings' earnings estimates, investors can diagnose different trends across Affirm Holdings' analyst sentiment over time as well as compare current EPS estimates against different timeframes. Please be aware that the consensus of earnings estimates for Affirm Holdings is based on EPS before non-recurring items and includes expenses related to employee stock options.Affirm Holdings Ownership Allocation
Affirm Holdings holds a total of 292.41 Million outstanding shares. The majority of Affirm Holdings outstanding shares are owned by other corporate entities. These outside corporations are usually referred to as non-private investors looking to acquire positions in Affirm Holdings to benefit from reduced commissions. Consequently, institutional investors are subject to a different set of regulations than regular investors in Affirm Holdings. Please pay attention to any change in the institutional holdings of Affirm Holdings as this could imply that something significant has changed or is about to change at the company. Please note that no matter how many assets the company secures, if the real value of the firm is less than the current market value, you may not be able to make money on it.Affirm Holdings Profitability Analysis
The company reported the previous year's revenue of 3.22 B. Net Income was 52.19 M with profit before overhead, payroll, taxes, and interest of 1.78 B.About Affirm Holdings Valuation
We use absolute and relative valuation methodologies to arrive at the intrinsic value of Affirm Holdings. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Affirm Holdings based exclusively on its fundamental and basic technical indicators. By analyzing Affirm Holdings's financials, quarterly and monthly indicators, and their related drivers, we attempt to find the most accurate representation of Affirm Holdings's intrinsic value. As compared to an absolute model, our relative valuation model uses a comparative analysis of Affirm Holdings. We calculate exposure to Affirm Holdings's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Affirm Holdings's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 2.5 B | 2.6 B | |
| Pretax Profit Margin | 0.02 | 0.02 | |
| Operating Profit Margin | (0.02) | (0.03) | |
| Net Profit Margin | 0.01 | 0.02 | |
| Gross Profit Margin | 0.61 | 0.48 |
Affirm Holdings Growth Indicators
Investing in growth stocks can be very risky. If the company such as Affirm Holdings does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
| Common Stock Shares Outstanding | 341 M | |
| Quarterly Earnings Growth Y O Y | 0.593 | |
| Forward Price Earnings | 58.4795 |
Affirm Holdings Current Valuation Indicators
Affirm Holdings' valuation analysis is a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Affirm Holdings' valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Affirm Holdings, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Affirm Holdings' valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Affirm Holdings' worth.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: Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Affirm Holdings. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in inflation. To learn how to invest in Affirm Stock, please use our How to Invest in Affirm Holdings guide.You can also try the Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Will Data Processing & Outsourced Services sector continue expanding? Could Affirm diversify its offerings? 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. Accurate valuation requires analyzing both current fundamentals and future growth trajectories. Every Affirm Holdings data point contributes insight, yet successful analysis hinges on identifying the most consequential variables.
Quarterly Earnings Growth 0.593 | Earnings Share 0.81 | Revenue Per Share | Quarterly Revenue Growth 0.296 | Return On Assets |
Understanding Affirm Holdings requires distinguishing between market price and book value, where the latter reflects Affirm's accounting equity. The concept of intrinsic value - what Affirm Holdings' is actually worth based on fundamentals - guides informed investors toward better entry and exit points. Seasoned market participants apply comprehensive analytical frameworks to derive fundamental worth and identify mispriced opportunities. Market sentiment, economic cycles, and investor behavior can push Affirm Holdings' price substantially above or below its fundamental value.
Understanding that Affirm Holdings' value differs from its trading price is crucial, as each reflects different aspects of the company. Evaluating whether Affirm Holdings represents a sound investment requires analyzing earnings trends, revenue growth, technical signals, industry dynamics, and expert forecasts. In contrast, Affirm Holdings' trading price reflects the actual exchange value where willing buyers and sellers reach mutual agreement.