ATLC - Affirm Holdings' Valuation Supportive Of Our Positive Outlook For Atlanticus Holdings

• Given our interest in consumer finance, we have been following the initial public offering process for Affirm and believe it is a quality company worthy of consideration for investment.
• In reviewing the Affirm Form S-1, we were struck by the many similarities between its business and that of Atlanticus.
• We observe that, as Affirm currently is not profitable, analysts tend to focus on the enterprise value to revenue multiple.
• At the $10 billion equity valuation reportedly expected for Affirm, we calculate that it would carry an enterprise value of 15.0x revenue compared to Atlanticus' trading multiple of 2.2x.
• Our comparative analysis is supportive of our positive outlook for Atlanticus and suggests Atlanticus would be an attractive merger or acquisition target for fintech companies such as Affirm.

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