* 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 : $3,481 M
EBITDA : $533 M
Net Debt (Debt - Cash): $1,358 M
Since Net Debt is covered by EBITDA within 3 years, 1 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: 50.25
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: $1,267 M
Revenue Converted To Free Cash Flow (%): -166.8%
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): $0.67
Trailing 12-Month Earnings Per Share (EPS): $0.35
Average Earnings Per Share (EPS): $0.51
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: $7
Threshold Price (15% Above 52-Week Low): $8
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: $30,583 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 13 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 49.56 (>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
18, Growth Based PE
49.56, Risk-Free Anchored PE (25% MoS)
17.61. Based on these 4 values, average assigned is
26.29. Value-Trades has assined P/E value
26.28. An average (Current Year EPS + Next Year EPS) earning per share is
$0.5079.
Note: Final fair value is the lesser of the blended PE-based fair value and the simple average PE × EPS fair value.Fair value using multiple P/Es (blended): $13.35 (PE 26.29 × EPS $0.51)
Fair value using simple average PE × EPS: $13.35 (PE 26.29 × EPS $0.51)
Lesser of these two: $13.35
So the Final Fair Value is: $13.35
