Affirm Holdings Inc (AFRM) Stock Analysis — PE Ratio, PS Ratio, Intrinsic Value & 2030 Price Target
Affirm Holdings Inc stock (AFRM) is currently trading at $45.05. Affirm Holdings Inc PE ratio is 55.30. Affirm Holdings Inc PS ratio (Price-to-Sales) is 4.01. Analyst consensus price target for AFRM is $81.23. WallStSmart rates AFRM as Hold.
- AFRM PE ratio analysis and historical PE chart
- AFRM PS ratio (Price-to-Sales) history and trend
- AFRM intrinsic value — DCF, Graham Number, EPV models
- AFRM stock price prediction 2025 2026 2027 2028 2029 2030
- AFRM fair value vs current price
- AFRM insider transactions and insider buying
- Is AFRM undervalued or overvalued?
- Affirm Holdings Inc financial analysis — revenue, earnings, cash flow
- AFRM Piotroski F-Score and Altman Z-Score
- AFRM analyst price target and Smart Rating
Affirm Holdings Inc
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AFRM Intrinsic Value Analysis for Value Investors
Benjamin Graham Formula · Affirm Holdings Inc (AFRM)
AFRM trades 49% above its Graham fair value of $37.91, indicating the stock may be overvalued at current levels.
Based on Benjamin Graham Formula. Growth rate capped at 25%. For informational purposes only. Not financial advice.
Smart Analysis
Affirm Holdings Inc (AFRM) · 10 metrics scored
Smart Score
Category Performance
WallStSmart pulls financial metrics like revenue growth, profit margins, and valuation ratios and scores each one from 0 to 10 based on how strong or weak it is. Those 10 scores are grouped into 4 categories: Growth, Profitability, Valuation, and Quality — which form the 4 axes of the spider chart you see. The categories are then combined into a final score out of 100, but not equally. Growth and Profitability together count for 60% of the total, because a fast-growing profitable business matters more than just a cheap one. That final number maps to a rating (Strong Buy, Buy, Hold, Avoid) and a letter grade, giving you one clear Stock Rating.
Investment Thesis
Strong fundamentals in market cap, peg ratio, revenue growth. Concerns around return on equity. Fundamentals are solid but monitor weak areas for improvement.
Affirm Holdings Inc (AFRM) Key Strengths (5)
Growing significantly faster than its price suggests
Earnings per share surging 59.30% year-over-year
85.16% of shares held by major funds and institutions
Large-cap company with substantial market presence
Strong revenue growth at 29.60% annually
Supporting Valuation Data
Affirm Holdings Inc (AFRM) Areas to Watch (5)
Low profitability relative to shareholder equity
Thin operating margins with cost pressures present
Premium valuation at 4.0x annual revenue
Premium pricing at 4.2x book value
Thin profit margins with limited profitability
Supporting Valuation Data
Affirm Holdings Inc (AFRM) Detailed Analysis Report
Overall Assessment
This company scores 63/100 in our Smart Analysis, earning a C+ grade. Out of 10 metrics analyzed, 5 register as strengths (avg 9.4/10) while 5 fall into concern territory (avg 3.8/10). The category breakdown reveals uneven performance, with some areas requiring attention.
The Bull Case
The strongest argument centers on PEG Ratio, EPS Growth, Institutional Own.. Valuation metrics including PEG Ratio (0.20) suggest the stock is attractively priced. Growth metrics are encouraging with Revenue Growth at 29.60%, EPS Growth at 59.30%.
The Bear Case
The primary concerns are Return on Equity, Operating Margin, Price/Sales. Some valuation metrics including Price/Sales (4.01), Price/Book (4.21) suggest expensive pricing. Profitability pressure is visible in Return on Equity at 8.92%, Operating Margin at 10.50%, Profit Margin at 7.60%.
Key Dynamics to Monitor
Three factors to monitor going forward. First, whether Return on Equity improves, as this is the primary drag on the overall score. Second, margin trajectory, with Return on Equity at 8.92% needing improvement to support the investment thesis. Third, growth sustainability, with Revenue Growth at 29.60% strong but requiring continuation.
Risk Considerations
Based on the metric profile, this is a moderate-to-high risk investment. Strengths and concerns are roughly balanced. Investors should size positions according to their risk tolerance and maintain diversification.
Bottom Line
Mixed fundamentals with both positives (PEG Ratio, EPS Growth) and negatives (Return on Equity, Operating Margin). A cautious approach is warranted. Monitor for improvement in weak areas before increasing conviction.
Disclaimer: Smart Analysis is a scoring system developed by WallStSmart Team. Scores update daily using multi-model valuation framework. Always conduct your own research and consult with financial advisors before making investment decisions.
AFRM Price-to-Sales(PS) Ratio Chart
Historical valuation based on market cap ÷ trailing 12-month revenue
AFRM's Price-to-Sales ratio of 4.01x trades at a deep discount to its historical average of 9.68x (22th percentile). The current valuation is 91% below its historical high of 45.71x set in Oct 2021, and 106% above its historical low of 1.95x in Apr 2023. Over the past 12 months, the PS ratio has compressed from ~5.7x as trailing revenue scaled faster than the stock price.
WallStSmart Analysis Synopsis
Data-driven financial summary for Affirm Holdings Inc (AFRM) · FINANCIAL SERVICES › CREDIT SERVICES
The Big Picture
Affirm Holdings Inc is a strong growth company balancing expansion with improving profitability. Revenue reached 3.7B with 30% growth year-over-year. Profit margins are thin at 7.6%, typical for companies in this phase that are reinvesting heavily in growth.
Key Findings
Revenue growing at 30% YoY, reaching 3.7B. This pace significantly outperforms most CREDIT SERVICES peers.
Generating 118M in free cash flow and 174M in operating cash flow. Earnings are translating into actual cash generation.
What to Watch Next
Margin expansion: can Affirm Holdings Inc push profit margins above 15% as the business scales?
Growth sustainability: can Affirm Holdings Inc maintain 30%+ revenue growth, or will competition slow it down?
Valuation compression risk at a P/E of 55.3x. Any growth miss could trigger a sharp correction.
Volatility is elevated with a beta of 3.73, so expect amplified moves relative to the broader market.
Bottom Line
Affirm Holdings Inc offers an attractive blend of growth (30% revenue expansion) and improving fundamentals. The company is transitioning from pure growth to profitable growth, a critical inflection point. Watch for sustained margin expansion as the key signal.
This synopsis is generated from publicly available financial data. It is not financial advice. Always conduct your own research and consult a qualified financial advisor before making investment decisions.
Insider Transactions
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About Affirm Holdings Inc(AFRM)
NASDAQ
FINANCIAL SERVICES
CREDIT SERVICES
USA
Affirm Holdings, Inc. operates a platform for digital and mobile commerce in the United States and Canada. The company is headquartered in San Francisco, California.