Financial - Credit Services · NASDAQ
Current Price
$15.53
Intrinsic Value
Use the calculator below to estimate
Run a full DCF analysis on SoFi Technologies, Inc. with auto-filled fundamentals, adjustable assumptions, and sensitivity heatmap.
SoFi Technologies, Inc. provides digital financial services. It operates through three segments: Lending, Technology Platform, and Financial Services. The company's lending and financial services and products allows its members to borrow, save, spend, invest, and protect their money. It offers student loans; personal loans for debt consolidation and home improvement projects; and home loans. The company also provides cash management, investment, and technology services. In addition, it operates Galileo, a technology platform that offers services to financial and non-financial institutions; and Apex, a technology enabled platform that provides investment custody and clearing brokerage services, as well as Technisys, a cloud-based digital multi-product core banking platform. The company was founded in 2011 and is headquartered in San Francisco, California.
ROIC (TTM)
10.3%
ROE (TTM)
6.2%
FCF Yield
-13.20%
Based on trailing twelve-month data, SOFI shows a free cash flow per share of N/A and a ROIC of 10.3%, key inputs for stock valuation using the DCF method. The P/FCF ratio of N/A and FCF yield of -13.20% are important context metrics when evaluating SOFI's stock valuation relative to peers.
The intrinsic value of SOFI depends on assumptions about future growth rate, discount rate (WACC), and terminal value. A DCF model discounts projected free cash flows back to present value — small changes in WACC can shift the estimate by 20% or more, which is why sensitivity analysis is essential.
Whether SOFI is undervalued depends on comparing the DCF-derived intrinsic value to the current market price of $15.53. A positive margin of safety (intrinsic value above market price) suggests potential undervaluation, but the degree of confidence depends on the reliability of your growth and discount rate assumptions.
To perform a DCF valuation on SoFi Technologies, Inc.: (1) Start with the trailing free cash flow per share as the base, (2) project future FCF growth over 5-10 years based on Financial - Credit Services industry trends and company fundamentals, (3) apply a discount rate (WACC) reflecting SOFI's risk profile, and (4) add a terminal value for cash flows beyond the projection period.
DCF (Discounted Cash Flow) estimates what a company is worth today based on its future cash generation. For SoFi Technologies, Inc., this means projecting how much free cash flow the Financial - Credit Services will produce over the next 5-10 years, then discounting those amounts to today's dollars. SOFI's ROIC of 10.3% shows moderate capital returns.
WACC (Weighted Average Cost of Capital) is the discount rate in a DCF model — it reflects the minimum return investors require. For SOFI, the capital structure and equity risk premium determine WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%.
