Is Affirm Holdings, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Affirm Holdings, Inc. has moved from very expensive to attractive, indicating a shift towards a more favorable assessment. The company is currently considered undervalued based on its valuation metrics. Key ratios include a P/E ratio of 152, an EV to EBITDA of 36.28, and a PEG ratio of 1.23, which suggest that while the stock is priced high relative to earnings, it may still offer growth potential compared to its price.
In comparison to peers, Affirm's P/E ratio of 153.84 is significantly higher than that of Synchrony Financial, which has a P/E of 15.06, indicating that Affirm is priced for substantial growth. Meanwhile, SoFi Technologies, with a P/E of 54.79, is also considered expensive, further supporting the notion that Affirm's valuation may be more justified given its growth prospects. Over the past year, Affirm has outperformed the S&P 500, returning 54.56% compared to the index's 14.08%, reinforcing the attractiveness of its current valuation.