10) Still Undervalued
Despite running more than 200% in the last few months, $SOFI — believe it or not — is still undervalued.
Case in point. $SOFI currently trades at a Forward PE of about 74x, but that's based on 2025 EPS estimate of $0.30, which is below management’s revised guidance of $0.31.
In addition, analysts estimate 2026 EPS to be $0.54, which is also below management's guidance of $0.55 to $0.80.
Analysts forget that management likes to not only sandbag their guidance but also destroy it in the process.
That said, I believe $SOFI will achieve an EPS of $1.00 in 2026, valuing SOFI at a 2026 Forward PE of about 21x today.
Now that looks like a good valuation to pay.
Some catalysts to consider include:
- new deals for the Loan Platform Business
- acquisitions
- relaunch of crypto offerings
- interest rate cuts
That's a wrap!
If you would like to read my full investment thesis on $SOFI, do check out my deep dive article here:
https://t.co/H7iuGNqovQ
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