Today we're going to take a closer look at Large-Cap Finance company Affirm, whose shares are currently trading at $62.07. We've been asking ourselves whether the company is under or over valued at today's prices... let's perform a brief value analysis to find out!
Affirm's Valuation Is in Line With Its Sector Averages:
Affirm Holdings, Inc. operates payment network in the United States, Canada, and internationally. The company belongs to the Finance sector, which has an average price to earnings (P/E) ratio of 20.04 and an average price to book (P/B) ratio of 1.86. In contrast, Affirm has a trailing 12 month P/E ratio of -100.1 and a P/B ratio of 7.04.
Affirm has moved 62.4% over the last year compared to 14.1% for the S&P 500 — a difference of 48.2%. Affirm has a 52 week high of $82.53 and a 52 week low of $22.25.
Overview of Financial Statements:
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | |
|---|---|---|---|---|---|---|
| Revenue (M) | $264 | $510 | $870 | $1,349 | $1,588 | $2,323 |
| Interest Income (M) | $26 | $32 | $53 | $70 | $183 | n/a |
| Net Margins | -46% | -22% | -51% | -52% | -62% | 52% |
| Net Income (M) | -$120 | -$113 | -$441 | -$707 | -$985 | $1,204 |
| Depreciation & Amort. (M) | $5 | $9 | $20 | $53 | $135 | $169 |
| Diluted Shares (M) | 48 | 71 | 282 | 294 | 308 | 313 |
| Earnings Per Share | -$2.84 | -$2.63 | -$2.94 | -$2.51 | -$3.34 | -$1.67 |
| EPS Growth | n/a | 7.39% | -11.79% | 14.63% | -33.07% | 50.0% |
| Free Cash Flow (M) | -$107 | -$31 | -$213 | -$248 | -$109 | n/a |
| CAPEX (M) | $19 | $2 | $20 | $86 | $121 | n/a |
| Total Debt (M) | n/a | $818 | $681 | $673 | $1,765 | $1,795 |
