Paysafe Limited (PSFE) is positioned as a potentially undervalued investment opportunity following a rebound in the stock market. As of now, Paysafe shares are trading under $15 and are still 50% lower than their 52-week high of $26, which they achieved shortly after going public via a SPAC merger in 2021.
Paysafe’s forward earnings trade at just 5X, significantly lower than its industry average of 25X, and its projected sales are anticipated to increase 1% in FY25, reaching $1.85 billion by FY26. Annual earnings are expected to rise by 12% in FY25 and by 15% in FY26, totaling $2.77 per share.
The company is part of the Russell 2000 index and features in the top 18% of the Zacks Financial Transaction Services Industry, indicating strong growth potential amidst increasing investor interest in small-cap stocks.
