* Note: Prices are in Million (M) USD.
Description:
SoFi Technologies, Inc. provides digital financial services. The company is headquartered in San Francisco, California.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $2,123 M
Debt : $0 M
EBITDA : $532 M
Since Cash is greater than Total Debt, 5 points assigned.
This criteria used industry in which company operates:
Sector: Technology
Industry: Financial transactions processing, reserve, and clearinghouse activities
Based on sector, 5 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 52.49
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:
Using last 8 overlapping fiscal years (max 20).Average Free Cash Flow: $-2,112 M
Average Revenue: $1,227 M
Revenue Converted To Free Cash Flow (%): -172.2%
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): $2,612 M
Revenue 4 Years Ago (2020-12-31): $751 M
Last 5 Years Average Revenue Growth: 50%
Since Revenue Growth 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): $1,101 M
Share Count 5 Years Ago (2020-12-31): $465 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): $0.65
Trailing 12-Month Earnings Per Share (EPS): $0.34
Average Earnings Per Share (EPS): $0.50
Dividend Per Share (DPS): $0
Payout Ratio: 0%
Dividend Yield: 0%
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 7 valid ROE years (max 20).Average ROE: -5.1%
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: $26
52-Week Low: $6
Threshold Price (15% Above 52-Week Low): $7
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: $25,141 M
Since Market Cap is between 10B - 100B, 2 points assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 0.20% exposure of Total Portfolio.
Value-Trade has assigned 17 points to above SoFi Technologies Inc. (SOFI) stock.
Heads up: One or more P/E inputs look exaggerated and may skew the blend.
• Growth Based PE 49.00 (>2× median)
Further research is recommended; please use your own due diligence.
In such cases, multiplying earnings by the long-run average P/E typically gives a closer, more reliable fair value.
Fair Value PE 20, Industry Based PE 20, Growth Based PE 49, RCFC Based PE 12, ROE Based PE 10, Risk-Free Anchored PE (25% MoS) 17.08. Based on these 6 values, average assigned is 21.35. Value-Trades has assined P/E value 21.35. Since an average (Current Year EPS + Next Year EPS) earning per share is $0.49605.
The fair value of SoFi Technologies Inc. (SOFI) stock should be (21.35 x $0.49605) = $10.59.
