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): 256.71%
EPS Trend (3Y Correlation): 95.5%

AFRM Revenue

Revenue Growth (3Y CAGR): -15.54%
Revenue Trend (3Y Correlation): 32.7%

Risk via 10d forecast
Volatility	82.3%
Value at Risk 5%th	121%

Reward
Sharpe Ratio	0.74
Alpha Jensen	24.80

Character
Hurst Exponent	0.432
Beta	3.574

Drawdowns 3y
Max DD	57.38%
Mean DD	24.51%

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	24,300m
Sub-Industry	Data Processing & Outsourced Services
IPO / Inception	2021-01-13
Return 12m vs S&P 500	18.3%
Analyst Rating	4.17 of 5

AFRM Dividends

Currently no dividends paid

AFRM Growth Ratios

CAGR	74.38%
CAGR/Max DD Calmar Ratio	1.30
CAGR/Mean DD Pain Ratio	3.03
Current Volume	6232.6k
Average Volume	5195.1k

Piotroski VR‑10 (Strict, 0-10) 5.0

Net Income (233.1m TTM) > 0 and > 6% of Revenue (6% = 166.6m TTM)

FCFTA 0.07 (>2.0%) and ΔFCFTA 2.95pp (YES ≥ +1.0pp, WARN ≥ +0.5pp)

NWC/Revenue 88.83% (prev 343.1%; Δ -254.2pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp)

CFO/TA 0.08 (>3.0%) and CFO 971.6m > Net Income 233.1m (YES >=105%, WARN >=100%)

Net Debt (-301.2m) to EBITDA (723.1m) ratio: -0.42 <= 3.0 (WARN <= 3.5)

Current Ratio 43.52 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active)

Outstanding Shares last Quarter (348.3m) change vs 12m ago 9.44% (target <= -2.0% for YES)

Gross Margin 70.54% (prev 65.71%; Δ 4.83pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0)

Asset Turnover 25.69% (prev 24.90%; Δ 0.79pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0)

Interest Coverage Ratio 1.50 (EBITDA TTM 723.1m / Interest Expense TTM 321.3m) >= 6 (WARN >= 3)

Altman Z'' 0.48

(A) 0.21 = (Total Current Assets 2.53b - Total Current Liabilities 58.0m) / Total Assets 11.48b

(B) -0.26 = Retained Earnings (Balance) -2.98b / Total Assets 11.48b

(D) -0.37 = Book Value of Equity -3.00b / Total Liabilities 8.18b

Total Rating: 0.48 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D)

ValueRay F-Score (Strict, 0-100) 58.90

1. Piotroski 5.0pt = 0.0

2. FCF Yield 3.32% = 1.66

3. FCF Margin 27.70% = 6.92

4. Debt/Equity 0.34 = 2.44

5. Debt/Ebitda -0.42 = 2.50

6. ROIC - WACC (= -14.27)% = -12.50

7. RoE 7.75% = 0.65

8. Rev. Trend 32.74% = 2.46

9. EPS Trend 95.55% = 4.78

What is the price of AFRM shares?

As of November 13, 2025, the stock is trading at USD 78.95 with a total of 6,232,598 shares traded.
Over the past week, the price has changed by +10.39%, over one month by +7.88%, over three months by +2.69% and over the past year by +37.09%.

Is Affirm Holdings a good stock to buy?

Neither. Based on ValueRay´s Fundamental Analyses, Affirm Holdings is currently (November 2025) neither a good nor a bad stock to buy. It has a ValueRay Fundamental Rating of 58.90 and therefor a neutral outlook according to the companies health.
Based on momentum, paid dividends and discounted-cash-flow analyses, the fair value of AFRM is around 65.72 USD . This means that AFRM is currently overvalued and has a potential downside of -16.76%.

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	94.8	20.1%
Analysts Target Price	94.8	20.1%
ValueRay Target Price	78.9	-0.1%

AFRM Fundamental Data Overview November 10, 2025

Market Cap USD = 24.30b (24.30b USD * 1.0 USD.USD)
P/E Trailing = 106.6957
P/E Forward = 85.4701
P/S = 7.0246
P/B = 8.216
P/EG = 42.6377
Beta = 3.574
Revenue TTM = 2.78b USD
EBIT TTM = 481.1m USD
EBITDA TTM = 723.1m USD
Long Term Debt = 7.82b USD (from longTermDebt, last fiscal year)
Short Term Debt = 199.8m USD (from shortTermDebt, last fiscal year)
Debt = 1.13b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = -301.2m USD (from netDebt column, last quarter)
Enterprise Value = 23.19b USD (24.30b + Debt 1.13b - CCE 2.24b)
Interest Coverage Ratio = 1.50 (Ebit TTM 481.1m / Interest Expense TTM 321.3m)
FCF Yield = 3.32% (FCF TTM 769.2m / Enterprise Value 23.19b)
FCF Margin = 27.70% (FCF TTM 769.2m / Revenue TTM 2.78b)
Net Margin = 8.39% (Net Income TTM 233.1m / Revenue TTM 2.78b)
Gross Margin = 70.54% ((Revenue TTM 2.78b - Cost of Revenue TTM 818.1m) / Revenue TTM)
Gross Margin QoQ = 100.0% (prev 67.72%)
Tobins Q-Ratio = 2.02 (Enterprise Value 23.19b / Total Assets 11.48b)
Interest Expense / Debt = 9.39% (Interest Expense 105.9m / Debt 1.13b)
Taxrate = 2.80% (2.33m / 83.0m)
NOPAT = 467.6m (EBIT 481.1m * (1 - 2.80%))
Current Ratio = 43.52 (Total Current Assets 2.53b / Total Current Liabilities 58.0m)
Debt / Equity = 0.34 (Debt 1.13b / totalStockholderEquity, last quarter 3.30b)
Debt / EBITDA = -0.42 (Net Debt -301.2m / EBITDA 723.1m)
Debt / FCF = -0.39 (Net Debt -301.2m / FCF TTM 769.2m)
Total Stockholder Equity = 3.01b (last 4 quarters mean from totalStockholderEquity)
RoA = 2.03% (Net Income 233.1m / Total Assets 11.48b)
RoE = 7.75% (Net Income TTM 233.1m / Total Stockholder Equity 3.01b)
RoCE = 4.44% (EBIT 481.1m / Capital Employed (Equity 3.01b + L.T.Debt 7.82b))
RoIC = 4.48% (NOPAT 467.6m / Invested Capital 10.45b)
WACC = 18.74% (E(24.30b)/V(25.43b) * Re(19.19%) + D(1.13b)/V(25.43b) * Rd(9.39%) * (1-Tc(0.03)))
Discount Rate = 19.19% (= CAPM, Blume Beta Adj.) -> capped to 17.95%
Shares Correlation 3-Years: 100.0 | Cagr: 6.41%
[DCF Debug] Terminal Value 38.99% ; FCFE base≈613.7m ; Y1≈402.9m ; Y5≈184.3m
Fair Price DCF = 4.93 (DCF Value 1.43b / Shares Outstanding 289.4m; 5y FCF grow -40.0% → 3.0% )
EPS Correlation: 95.55 | EPS CAGR: 256.7% | SUE: 2.99 | # QB: 2
Revenue Correlation: 32.74 | Revenue CAGR: -15.54% | SUE: -4.0 | # QB: 0

Additional Sources for AFRM Stock

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Fund Manager Positions: Dataroma | Stockcircle