SoFi Technologies (NASDAQ: SOFI) has seen a 15% increase in its stock price over the past month, currently trading around $15, partly fueled by the positive sentiment from Chime’s recent IPO. Despite this rally, analysts express concerns over SoFi’s valuation, labeling it as potentially overvalued based on its price-to-sales (P/S) ratio of 5.9 compared to the S&P 500’s 3.1, and a price-to-earnings (P/E) ratio of 32.9 versus the index’s 26.9.
SoFi’s revenue has grown significantly, averaging an annual increase of 36.2% over the past three years, with the most recent quarter showing a 31.7% rise. However, its operating cash flow margin remains negative at -65.6%, and the stock has underperformed the S&P 500 in recent market downturns, including an 83.3% drop from its peak in February 2021 to December 2022. Analysts rate the overall performance as neutral, with strong growth but weak profitability and downturn resilience.
