Affirm Holdings, Inc. (AFRM)
Financial Services · NMS · US
Fundamentals
Valuation and ratings
Affirm Holdings, Inc. trades at USD81.71, which is 47% above the USD43.51 our discounted cash flow model puts on the business. On that measure it screens as expensive, which is not the same as saying it will fall.
Our moat model scores it 54 out of 100, which is a moat, but not a deep one. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 74.7 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About Affirm Holdings, Inc.
Affirm Holdings, Inc. operates payment network in the United States, Canada, and internationally. Its platform includes point-of-sale payment solution for consumers, merchant commerce solutions, and a consumer-focused app. The company's commerce platform, agreements with originating banks, and capital markets partners enables consumers to pay for a purchase over time. It has active merchants covering small businesses, large enterprises, direct-to-consumer brands, brick-and-mortar stores, and companies with an omni-channel presence. The company's merchants represent a range of industries, including sporting goods and outdoors, home and lifestyle, travel and ticketing, electronics, fashion and beauty, equipment and auto, and general merchandise. Affirm Holdings, Inc. was founded in 2012 and is headquartered in San Francisco, California.
AFRM passes 1 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Smart money ownership
14 of the funds we track reported a position in their latest SEC 13F filing. Largest first:
- Capital Research Global, Capital Research Global Investors$1.13B · 0.2% of book
- Henry Ellenbogen, Durable Capital Partners LP$258.86M · 2.7% of book
- Baillie Gifford, BAILLIE GIFFORD & CO$242.95M · 0.3% of book
- Ken Griffin, CITADEL ADVISORS LLC$186.54M · 0.0% of book
- Marshall Wace, MARSHALL WACE, LLP$124.08M · 0.1% of book
A word of warning on reading these figures: a 13F reports the market value of a holding, so a fund that traded nothing at all still appears to have sold when the price fell. We found 102 companies where the standard reading gives the opposite answer. Only the share count is honest.
Common questions
Is Affirm Holdings, Inc. (AFRM) undervalued?
Against our discounted cash flow estimate of USD43.51, AFRM at USD81.71 is 47% above fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
Which funds own AFRM?
14 of the institutions we track reported a position in AFRM in their most recent SEC 13F filing. A 13F is filed up to 45 days after quarter end, so it tells you what a fund held then, not what it holds now.
What is AFRM's P/E ratio?
AFRM trades at 74.7 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
The full research page for AFRM, with financial statements, ownership detail, peer comparison and alerts, is free inside the app.
Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.