Overview Dividends

(AFRM) Affirm Holdings - Ratings and Ratios

Exchange: NASDAQ • Country: United States • Currency: USD • Type: Common Stock • ISIN: US00827B1061

Payment Network, Installment Loans, Merchant Solutions, Consumer App

AFRM EPS (Earnings per Share)

EPS Growth (3Y CAGR): 217.59%
EPS Trend (3Y Correlation): 91.0%

AFRM Revenue

Revenue Growth (3Y CAGR): 37.98%
Revenue Trend (3Y Correlation): 98.1%

Description: AFRM Affirm Holdings October 14, 2025

Affirm Holdings, Inc. (NASDAQ: AFRM) operates a U.S.-centric “buy-now-pay-later” (BNPL) network that also serves Canada and select international markets. Its suite includes a point-of-sale financing option for consumers, a merchant-facing commerce platform, and a consumer app that lets shoppers split purchases into installments.

The firm’s merchant base spans small-business retailers to large omni-channel brands across sectors such as sporting goods, travel, electronics, fashion, and automotive. Agreements with originating banks and capital-markets partners supply the credit needed to fund these installments, while the platform’s data-processing capabilities enable real-time risk assessment.

Key recent metrics (as of Q2 2024) show a 22 % YoY increase in total payment volume to $9.3 bn, while revenue grew 18 % to $1.12 bn. However, the company posted a net loss of $210 m, reflecting higher financing costs amid rising interest rates-a macro driver that can compress BNPL margins. The BNPL sector’s growth rate is estimated at 12 % CAGR through 2027, but regulatory scrutiny (e.g., U.S. CFPB guidance) adds uncertainty to future underwriting standards.

Given the sensitivity of BNPL models to credit spreads and consumer discretionary spending, analysts should monitor the Fed’s policy trajectory and the competitive landscape (e.g., PayPal, Klarna) when projecting AFRM’s earnings potential.

For a deeper quantitative breakdown, you might explore the ValueRay platform’s analyst toolkit to compare AFRM’s valuation metrics against sector peers.

AFRM Stock Overview

Market Cap in USD	22,112m
Sub-Industry	Data Processing & Outsourced Services
IPO / Inception	2021-01-13

AFRM Stock Ratings

Growth Rating	65.4%
Fundamental	49.7%
Dividend Rating	-
Return 12m vs S&P 500	41.7%
Analyst Rating	4.17 of 5

AFRM Dividends

Currently no dividends paid

AFRM Growth Ratios

Growth Correlation 3m	-26.2%
Growth Correlation 12m	51.8%
Growth Correlation 5y	-8.2%
CAGR 5y	61.13%
CAGR/Max DD 3y (Calmar Ratio)	1.07
CAGR/Mean DD 3y (Pain Ratio)	2.44
Sharpe Ratio 12m	1.09
Alpha	17.14
Beta	3.584
Volatility	72.08%
Current Volume	3885.3k
Average Volume 20d	4928.5k
Stop Loss	67.6 (-7%)
Signal	-0.60

Piotroski VR‑10 (Strict, 0-10) 2.0

Net Income (52.2m TTM) > 0 and > 6% of Revenue (6% = 193.5m TTM)

FCFTA 0.05 (>2.0%) and ΔFCFTA 2.34pp (YES ≥ +1.0pp, WARN ≥ +0.5pp)

NWC/Revenue 297.1% (prev 348.0%; Δ -50.96pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp)

CFO/TA 0.07 (>3.0%) and CFO 793.9m > Net Income 52.2m (YES >=105%, WARN >=100%)

Net Debt (6.50b) to EBITDA (587.5m) ratio: 11.06 <= 3.0 (WARN <= 3.5)

Current Ratio 54.19 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active)

Outstanding Shares last Quarter (342.6m) change vs 12m ago 8.58% (target <= -2.0% for YES)

Gross Margin 67.51% (prev 74.34%; Δ -6.83pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0)

Asset Turnover 31.19% (prev 24.40%; Δ 6.79pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0)

Interest Coverage Ratio 0.85 (EBITDA TTM 587.5m / Interest Expense TTM 425.4m) >= 6 (WARN >= 3)

Altman Z'' 4.58

(A) 0.86 = (Total Current Assets 9.76b - Total Current Liabilities 180.1m) / Total Assets 11.15b

(B) -0.27 = Retained Earnings (Balance) -3.06b / Total Assets 11.15b

(D) -0.38 = Book Value of Equity -3.07b / Total Liabilities 8.09b

Total Rating: 4.58 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D)

ValueRay F-Score (Strict, 0-100) 49.72

1. Piotroski 2.0pt = -3.0

2. FCF Yield 2.17% = 1.08

3. FCF Margin 18.66% = 4.67

4. Debt/Equity 2.56 = -0.09

5. Debt/Ebitda 11.06 = -2.50

6. ROIC - WACC (= -11.13)% = -12.50

7. RoE 1.80% = 0.15

8. Rev. Trend 98.12% = 7.36

9. EPS Trend 91.04% = 4.55

What is the price of AFRM shares?

As of October 30, 2025, the stock is trading at USD 72.66 with a total of 3,885,309 shares traded.
Over the past week, the price has changed by +1.01%, over one month by -5.09%, over three months by +6.92% and over the past year by +69.49%.

Is Affirm Holdings a good stock to buy?

No, based on ValueRay´s Fundamental Analyses, Affirm Holdings (NASDAQ:AFRM) is currently (October 2025) a stock to sell. It has a ValueRay Fundamental Rating of 49.72 and therefor a negative outlook according to the companies health.
Based on momentum, paid dividends and discounted-cash-flow analyses, the fair value of AFRM is around 63.90 USD . This means that AFRM is currently overvalued and has a potential downside of -12.06%.

Is AFRM a buy, sell or hold?

Affirm Holdings has received a consensus analysts rating of 4.17. Therefore, it is recommended to buy AFRM.

Strong Buy: 11
Buy: 6
Hold: 7
Sell: 0
Strong Sell: 0

What are the forecasts/targets for the AFRM price?

Issuer	Target	Up/Down from current
Wallstreet Target Price	96.3	32.5%
Analysts Target Price	96.3	32.5%
ValueRay Target Price	75.1	3.4%

AFRM Fundamental Data Overview October 21, 2025

Market Cap USD = 22.11b (22.11b USD * 1.0 USD.USD)
P/E Trailing = 452.6667
P/E Forward = 85.4701
P/S = 6.8576
P/B = 8.216
P/EG = 42.6377
Beta = 3.584
Revenue TTM = 3.22b USD
EBIT TTM = 362.5m USD
EBITDA TTM = 587.5m USD
Long Term Debt = 7.82b USD (from longTermDebt, last quarter)
Short Term Debt = 199.8m USD (from shortTermDebt, last quarter)
Debt = 7.85b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 6.50b USD (from netDebt column, last quarter)
Enterprise Value = 27.74b USD (22.11b + Debt 7.85b - CCE 2.23b)
Interest Coverage Ratio = 0.85 (Ebit TTM 362.5m / Interest Expense TTM 425.4m)
FCF Yield = 2.17% (FCF TTM 601.7m / Enterprise Value 27.74b)
FCF Margin = 18.66% (FCF TTM 601.7m / Revenue TTM 3.22b)
Net Margin = 1.62% (Net Income TTM 52.2m / Revenue TTM 3.22b)
Gross Margin = 67.51% ((Revenue TTM 3.22b - Cost of Revenue TTM 1.05b) / Revenue TTM)
Gross Margin QoQ = 67.72% (prev 65.39%)
Tobins Q-Ratio = 2.49 (Enterprise Value 27.74b / Total Assets 11.15b)
Interest Expense / Debt = 1.35% (Interest Expense 105.9m / Debt 7.85b)
Taxrate = 3.26% (2.34m / 71.6m)
NOPAT = 350.6m (EBIT 362.5m * (1 - 3.26%))
Current Ratio = 54.19 (Total Current Assets 9.76b / Total Current Liabilities 180.1m)
Debt / Equity = 2.56 (Debt 7.85b / totalStockholderEquity, last quarter 3.07b)
Debt / EBITDA = 11.06 (Net Debt 6.50b / EBITDA 587.5m)
Debt / FCF = 10.80 (Net Debt 6.50b / FCF TTM 601.7m)
Total Stockholder Equity = 2.89b (last 4 quarters mean from totalStockholderEquity)
RoA = 0.47% (Net Income 52.2m / Total Assets 11.15b)
RoE = 1.80% (Net Income TTM 52.2m / Total Stockholder Equity 2.89b)
RoCE = 3.38% (EBIT 362.5m / Capital Employed (Equity 2.89b + L.T.Debt 7.82b))
RoIC = 3.40% (NOPAT 350.6m / Invested Capital 10.31b)
WACC = 14.52% (E(22.11b)/V(29.96b) * Re(19.22%) + D(7.85b)/V(29.96b) * Rd(1.35%) * (1-Tc(0.03)))
Discount Rate = 19.22% (= CAPM, Blume Beta Adj.) -> capped to 17.95%
Shares Correlation 3-Years: 33.33 | Cagr: 5.54%
[DCF Debug] Terminal Value 38.99% ; FCFE base≈477.4m ; Y1≈313.4m ; Y5≈143.3m
Fair Price DCF = 3.89 (DCF Value 1.11b / Shares Outstanding 284.9m; 5y FCF grow -40.0% → 3.0% )
EPS Correlation: 91.04 | EPS CAGR: 217.6% | SUE: -0.65 | # QB: 0
Revenue Correlation: 98.12 | Revenue CAGR: 37.98% | SUE: 0.45 | # QB: 0

Additional Sources for AFRM Stock

News: Wall Street Journal | Benzinga | Yahoo Finance
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Fund Manager Positions: Dataroma | Stockcircle