Is SoFi Technologies, Inc. overvalued or undervalued?

As of 21 August 2025, the valuation grade for SoFi Technologies, Inc. has moved from fair to expensive. The company appears to be overvalued based on its current metrics. Key ratios include a P/E ratio of 33, an EV to EBITDA of 22.25, and a Price to Book Value of 2.36, all of which suggest that the stock is trading at a premium compared to its earnings and asset value.
In comparison to its peers, SoFi Technologies has a significantly higher P/E ratio of 54.79, while Synchrony Financial boasts a much lower P/E of 15.06, indicating a more attractive valuation. AerCap Holdings NV also presents a lower P/E of 11.71, further highlighting SoFi's expensive positioning within the industry. Notably, SoFi has outperformed the S&P 500 in multiple time frames, with a remarkable 1-year return of 246.61% compared to the S&P 500's 17.14%, which may reflect investor enthusiasm despite its current overvaluation.