SoFi Technologies, Inc. (SOFI) Stock Valuation — PE Analysis
Financial - Credit Services · NASDAQ
Current Price
$15.25
PE Ratio (TTM)
29.9x
Intrinsic Value
$27.51
+44.6% margin of safety
COMPETITIVE MOAT
↑Integrated Financial Ecosystem
SoFi offers a comprehensive suite of financial products, from student loans to investing, creating a sticky ecosystem for its users. This integration encourages cross-selling and customer retention.
↑Bank Charter Advantage
The bank charter allows SoFi to hold deposits and fund loans more cost-effectively. This reduces reliance on wholesale funding and improves net interest margins.
↑Growing Deposit Base
SoFi's deposit base has significantly expanded, providing stable and low-cost funding. This scale is crucial for supporting its lending operations and future growth.
INVESTMENT RISKS
↓Economic Downturn Impact
A significant economic slowdown or recession could lead to increased loan defaults and reduced demand for lending products. This would directly affect SoFi's core revenue streams.
↓Interest Rate Sensitivity
SoFi's profitability is sensitive to changes in interest rates. Rising rates can increase funding costs and potentially reduce loan origination volumes.
↓Execution Risk on Diversification
While diversification into new products is a strategy, successful execution across all segments is critical. Any missteps in product development or market adoption could hinder growth.
Base case
SOFI base case PE valuation
At a current price of $15.25, the base case PE valuation puts SOFI fair value near $27.51 per share. That figure assumes 20.0% yearly earnings growth, a target PE multiple of 27x, and a 10% discount rate.
Intrinsic Value
$27.51
Margin of safety
+44.6%
Expected annual return
+12.5%
Base case assumptions: 20.0% annual earnings growth, 27x target PE, 10% discount rate, 5 year projection. Data as of 2026-07-29.
This base case uses default assumptions and is not financial advice. The fair value changes significantly when the target PE or earnings growth rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the SOFI PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for SoFi Technologies, Inc. respond.
Open PE Calculator for SOFICompany Overview
SoFi Technologies, Inc. specializes in delivering a wide array of online financial solutions. The company's business is structured across three main divisions: Lending, Technology Platform, and Financial Services. Through its diverse offerings, SoFi empowers its members to manage their money comprehensively, facilitating borrowing, saving, spending, investing, and asset protection. Its lending portfolio includes student loans, personal loans for various needs like debt consolidation or home improvements, and home mortgages. Furthermore, SoFi provides services for cash management and investment, complemented by its robust technology services. This technology segment features Galileo, a platform serving both financial and non-financial institutions; Apex, a technology-driven platform for investment custody and clearing brokerage; and Technisys, a cutting-edge, cloud-native core banking platform designed for multiple products. Established in 2011, SoFi Technologies, Inc. is based in San Francisco, California.
Financial Metrics — SOFI PE Stock Valuation Data
PE Ratio (TTM)
29.9x
PEG Ratio
n/m
Earnings Yield
3.75%
ROE (TTM)
7.1%
Revenue/Share (TTM)
$3.79
Frequently Asked Questions
What is the PE ratio of SOFI?
The trailing twelve-month PE ratio of SOFI reflects how much investors pay per dollar of SoFi Technologies, Inc.'s earnings. This metric is most useful when compared to Financial - Credit Services peers and the company's own historical range.
Is SOFI overvalued based on PE ratio?
SOFI's PE of 29.9x combined with a PEG ratio of -7.92 provides a growth-adjusted perspective. SOFI has negative earnings, so its PE and PEG ratios are not meaningful here and cannot tell you whether the stock is over or undervalued. Keep in mind that PE-based valuation works best for profitable, mature companies — for high-growth or cyclical Financial - Credit Services, a DCF analysis may be more appropriate.
How do I value SOFI stock using PE ratio?
To value SoFi Technologies, Inc. using PE: (1) Compare the current PE (29.9x) against the Financial - Credit Services median to assess relative pricing, (2) check the PEG ratio (-7.92) to adjust for growth expectations, (3) review the 5-year PE range to identify where the stock sits historically, and (4) estimate fair value by multiplying a target PE by forward EPS estimates. This relative approach complements DCF's absolute valuation.
What is the PEG ratio of SOFI?
SOFI's PEG ratio is -7.92, calculated by dividing the PE ratio (29.9x) by the expected earnings growth rate. Because SOFI has negative earnings, its PEG ratio is not meaningful and should not be read as a sign of under or overvaluation. Note that PEG accuracy depends on the reliability of growth estimates.
Should I use PE ratio or DCF for SOFI stock valuation?
PE ratio gives a quick relative read — how SOFI is priced versus Financial - Credit Services peers. DCF provides an absolute value based on projected free cash flows. For the most reliable valuation, use PE as a quick comparability screen and DCF for a deeper fundamental analysis. Each method has blind spots: PE ignores capital structure and cash flow quality, while DCF is sensitive to growth and discount rate assumptions.
Learn More
- See SOFI DCF Valuation → — Intrinsic value via Discounted Cash Flow analysis
- PE Methodology — Step-by-step guide to PE ratio stock valuation
- DCF Methodology — Guide to discounted cash flow analysis
- PE Ratio — Understanding the price-to-earnings ratio
- Intrinsic Value — How to evaluate stock fair value
Related PE Valuations
All Financial Services valuationsP/E and DCF value SOFI with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2026-07-29. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.