- 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.
For further details see:
Affirm Holdings' Valuation Supportive Of Our Positive Outlook For Atlanticus Holdings