Is SoFi Technologies, Inc. overvalued or undervalued?

As of 7 April 2025, the valuation grade for SoFi Technologies, Inc. has moved from attractive to fair, indicating a shift in market perception. The company appears to be fairly valued at this time. Key ratios include a P/E ratio of 33, an EV to EBITDA of 22.25, and a PEG ratio of 0.06, which suggests that while the stock may be priced fairly relative to its earnings, the growth potential is not being fully recognized by the market.
In comparison to peers, SoFi's P/E ratio is significantly higher than AerCap Holdings NV at 10.43 and Blue Owl Capital Corp. at 11.29, both of which are trading at lower valuations despite their respective growth prospects. This suggests that SoFi may be overvalued relative to its peers, particularly given its lower ROE of 7.21% compared to the industry average. Notably, SoFi has outperformed the S&P 500 over the past year with a return of 143.04% compared to 10.26%, which may have contributed to its current valuation status.