* Note: Prices are in Million (M) USD.
Description:
Blend Labs Inc. (BLND) is a prominent technology company revolutionizing the financial services industry through its advanced digital platform that streamlines and automates the lending process. Catering to banks, credit unions, and mortgage lenders, Blend's innovative solutions enhance customer experiences and drive operational efficiencies by leveraging data-driven insights and intuitive interfaces. The company is dedicated to empowering financial institutions, enabling them to deliver personalized products and services that elevate their competitive edge in an increasingly digital marketplace. With a strategic focus on growth, Blend continues to expand its footprint in the dynamic fintech sector by forging partnerships and harnessing cutting-edge technology.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $55 M
Debt : $0 M
EBITDA : $4 M
Since Cash is greater than Total Debt, 5 points assigned.
This criteria used industry in which company operates:
Sector: Information technology
Industry: Software - application
Based on industry, 5 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 19.40
Since Forward PE Ratio is between 15 - 20, 3 points assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Using last 6 overlapping fiscal years (max 20).Average Free Cash Flow: $-100 M
Average Revenue: $156 M
Revenue Converted To Free Cash Flow (%): -64.0%
Since Free Cash Flow (FCF) to Revenue percentage is non-positive, 0 point assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2024-12-31): $162 M
Revenue 5 Years Ago (2019-12-31): $51 M
Total Growth over 5 Years: 219.7%
5-Year Revenue CAGR (Historical): 26.2%
Forward 5-Year CAGR (Tapered): 13.1%
Since historical Revenue CAGR is greater than 20, 5 points assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2024-12-31): $254 M
Share Count 5 Years Ago (2020-12-31): $220 M
Company is not buying back its own shares, 0 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $0.11
Trailing 12-Month Earnings Per Share (EPS): $0.05
Average Earnings Per Share (EPS): $0.08
Dividend Per Share (DPS): $0
Payout Ratio: 0%
Dividend Yield: 0.00%
Since Dividend Per Share is less than or equal to 0, 0 point assigned.
Since Dividend Yield is less than 1, 0 point assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Using last 4 valid ROE years (max 20).Average ROE: -188.0%
Since Average ROE is non-positive, 0 point assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $1.48
52-Week Low: $1.64
Threshold Price (15% Above 52-Week Low): $1.89
Since Current price is within 15% threshold, 5 points assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $444 M
Since Market Cap is less than 10B, 1 point assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 0.5% exposure of Total Portfolio.
Warren Buffett's Owners' Earnings:
No positive free cash flow found (TTM or annual) to compute Owners' Earnings per share.
Note: Many fast-growing companies reinvest heavily, so Owners' Earnings may appear low.
Consider other factors in your valuation.
Value-Trade has assigned 24 points to above Blend Labs Inc (BLND) stock.
Fair Value PE
25, Industry Based PE
30, Growth Based PE
15, Risk-Free Anchored PE (25% MoS)
18.16. Based on these 4 values, average assigned is
22.04. Value-Trades has assined P/E value
22.02. An average (Current Year EPS + Next Year EPS) earning per share is
$0.0763.
Fair value using multiple P/Es (blended): $1.68 (PE 22.04 × EPS $0.08)
So the Final Fair Value is: $1.68
Understanding the Value-Trades P/E Blend (click to expand)
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What goes into the blended P/E?
- 20-Year Avg P/E — Long-run market baseline; conservative anchor.
- Fair Value P/E — Score-based (cash, debt, sector, etc.).
- Industry P/E — Peer group norm.
- Growth-Based P/E — Uses tapered growth rates, floored at 15.
- RCFC-Based P/E — Maps cash conversion efficiency.
- ROE-Based P/E — Higher ROE supports higher multiples.
- Risk-Free Anchored P/E — Macro floor tied to 10y yield w/ MoS.
How it works
- Extreme values are clamped/filtered (IQR method).
- Anchors (20y avg, RCFC/ROE, risk-free) are always kept if valid.
- Final fair value = min(Blended PE × EPS, Avg PE × EPS).
P/E Reference Summary
Using EPS: $0.08
| Source |
P/E Ratio |
Implied Fair Value |
| Value-Trades Assigned | 22.02 | $1.68 |
