* Note: Prices are in Million (M) USD.
Description:
Figma, Inc. is a leading collaborative design platform that empowers teams to create, prototype, and collaborate on design projects in real-time. Headquartered in San Francisco, the company leverages cloud-based technology to enhance user experience and streamline workflows for designers across various industries. With a strong emphasis on innovation and user-centric design, Figma has established itself as a critical tool for creative professionals, driving efficiency and collaboration in the design process. Its robust features, combined with a vibrant community and extensive integrations, position Figma as a pivotal player in the fast-evolving digital design landscape.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $622 M
Debt : $19 M
EBITDA : $139 M
Since Cash is greater than Total Debt, 5 points assigned.
This criteria used industry in which company operates:
Sector: Btechnology
Industry: General
Based on industry, 3 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 192.36
Since Forward PE Ratio is greater than 35, 0 point assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Insufficient overlapping years for RCFC (found 2; need ≥ 3). Dropping RCFC-based PE.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2024-12-31): $749 M
Revenue 1 Years Ago (2023-12-31): $505 M
Total Growth over 1 Years: 48.4%
1-Year Revenue CAGR (Historical): 48.4%
Forward 5-Year CAGR (Tapered): 24.2%
Since historical Revenue CAGR is greater than 20, 5 points assigned.
This criteria used Company's ability to buy back its own share:
Error: This stock does not have 5 years of share count data.Using default values for calculation.
Based on default values, 0 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $0.21
Trailing 12-Month Earnings Per Share (EPS): $0.30
Average Earnings Per Share (EPS): $0.25
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:
Insufficient valid ROE years (found 2; need ≥ 3). Dropping ROE-based PE.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $48.84
52-Week Low: $33.00
Threshold Price (15% Above 52-Week Low): $37.95
Since Current price is not within 15% threshold, 0 point assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $25,978 M
Since Market Cap is between 10B - 100B, 2 points assigned.
% Exposure to Total Portfolio
Based on high P/E, we recommend do not exceed 0.20% 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 15 points to above Figma, Inc. (FIG) stock.
Fair Value PE
12, Industry Based PE
15, Growth Based PE
24.18, Risk-Free Anchored PE (25% MoS)
18.2. Based on these 4 values, average assigned is
17.35. Value-Trades has assined P/E value
17.33. An average (Current Year EPS + Next Year EPS) earning per share is
$0.2539.
Fair value using multiple P/Es (blended): $4.40 (PE 17.35 × EPS $0.25)
So the Final Fair Value is: $4.40
Understanding the Value-Trades P/E Blend (click to expand)
▾
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: $0.25
| Source |
P/E Ratio |
Implied Fair Value |
| Value-Trades Assigned | 17.33 | $4.40 |
