AFRM Valuation

Affirm Holdings Inc

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88.460

+8.47(10.589%)1D

Overview
Forecast
Valuation
Earnings

AFRM Relative Valuation

AFRM's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, AFRM is overvalued; if below, it's undervalued.

Historical Valuation

Affirm Holdings Inc (AFRM) is now in the Fair zone, suggesting that its current forward PS ratio of 6.55 is considered Fairly compared with the five-year average of -31.35. The fair price of Affirm Holdings Inc (AFRM) is between 12.54 to 178.52 according to relative valuation methord.

Relative Value

Fair Zone

12.54-178.52

Current Price：88.46

Fair

38.46

Trailing

Forward

82.32

EV/EBITDA

Affirm Holdings Inc. (AFRM) has a current EV/EBITDA of 82.32. The 5-year average EV/EBITDA is -27.31. The thresholds are as follows: Strongly Undervalued below -286.52, Undervalued between -286.52 and -156.91, Fairly Valued between 102.29 and -156.91, Overvalued between 102.29 and 231.90, and Strongly Overvalued above 231.90. The current Forward EV/EBITDA of 82.32 falls within the Historic Trend Line -Fairly Valued range.

204.99

EV/EBIT

Affirm Holdings Inc. (AFRM) has a current EV/EBIT of 204.99. The 5-year average EV/EBIT is 44.27. The thresholds are as follows: Strongly Undervalued below -700.51, Undervalued between -700.51 and -328.12, Fairly Valued between 416.67 and -328.12, Overvalued between 416.67 and 789.06, and Strongly Overvalued above 789.06. The current Forward EV/EBIT of 204.99 falls within the Historic Trend Line -Fairly Valued range.

7.00

Affirm Holdings Inc. (AFRM) has a current PS of 7.00. The 5-year average PS is 7.83. The thresholds are as follows: Strongly Undervalued below -7.54, Undervalued between -7.54 and 0.14, Fairly Valued between 15.52 and 0.14, Overvalued between 15.52 and 23.20, and Strongly Overvalued above 23.20. The current Forward PS of 7.00 falls within the Historic Trend Line -Fairly Valued range.

22.76

P/OCF

Affirm Holdings Inc. (AFRM) has a current P/OCF of 22.76. The 5-year average P/OCF is 283.49. The thresholds are as follows: Strongly Undervalued below -2316.60, Undervalued between -2316.60 and -1016.56, Fairly Valued between 1583.54 and -1016.56, Overvalued between 1583.54 and 2883.59, and Strongly Overvalued above 2883.59. The current Forward P/OCF of 22.76 falls within the Historic Trend Line -Fairly Valued range.

30.87

P/FCF

Affirm Holdings Inc. (AFRM) has a current P/FCF of 30.87. The 5-year average P/FCF is 6.80. The thresholds are as follows: Strongly Undervalued below -372.12, Undervalued between -372.12 and -182.66, Fairly Valued between 196.27 and -182.66, Overvalued between 196.27 and 385.73, and Strongly Overvalued above 385.73. The current Forward P/FCF of 30.87 falls within the Historic Trend Line -Fairly Valued range.

Affirm Holdings Inc (AFRM) has a current Price-to-Book (P/B) ratio of 8.20. Compared to its 3-year average P/B ratio of 3.92 , the current P/B ratio is approximately 109.21% higher. Relative to its 5-year average P/B ratio of 4.07, the current P/B ratio is about 101.35% higher. Affirm Holdings Inc (AFRM) has a Forward Free Cash Flow (FCF) yield of approximately 2.31%. Compared to its 3-year average FCF yield of -1.10%, the current FCF yield is approximately -310.56% lower. Relative to its 5-year average FCF yield of -1.20% , the current FCF yield is about -292.43% lower.

8.97

P/B

Median3y

3.92

Median5y

4.07

2.36

FCF Yield

Median3y

-1.10

Median5y

-1.20

Competitors Valuation Multiple

The average P/S ratio for AFRM's competitors is 3.57, providing a benchmark for relative valuation. Affirm Holdings Inc Corp (AFRM) exhibits a P/S ratio of 6.55, which is 83.32% above the industry average. Given its robust revenue growth of -13.55%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

SoFi Technologies Inc

Performance Decomposition

Market capitalization of AFRM increased by 101.00% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 235.03 to 1.16K.

The secondary factor is the Revenue Growth, contributed -13.55%to the performance.

Overall, the performance of AFRM in the past 1 year is driven by P/E Change. Which is more unsustainable.

-13.55%

659.19M → 569.85M

Revenue Growth

-277.37%

-6.85 → 12.15

Margin Expansion

391.92%

235.03 → 1.16K

P/E Change

101.00%