Upstart Holdings Intrinsic Value Calculation – UPSTART HOLDINGS: The Rising Star of the Stock Market with 1,190% Growth in Just 10 Months
October 8, 2024
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Upstart Holdings ($NASDAQ:UPST) has quickly become one of the most talked-about stocks in the market, thanks to its incredible growth in just 10 months. After going public in December 2020, Upstart’s stock price has skyrocketed by an astounding 1,190%, making it the buzzworthy stock of the year. So, what is Upstart Holdings? The company aims to revolutionize the traditional lending process by using AI and machine learning algorithms to assess creditworthiness and offer more accurate and fair loan rates. But what sets Upstart apart from other AI lending companies? One of the key factors is its focus on incorporating non-traditional data points into its credit decision-making process. This means that Upstart takes into account factors such as education, work experience, and even social media profiles, in addition to credit scores.
This allows the company to better assess the risk associated with each borrower and offer more competitive rates. This unique approach has not only attracted a large number of borrowers but has also gained the trust and confidence of investors. The company’s IPO in December 2020 was met with great enthusiasm from the market. While no investment is ever completely risk-free, Upstart’s impressive growth and unique approach to lending make it a promising company to consider. As the use of AI and machine learning continues to expand, Upstart is well-positioned to capitalize on this trend and potentially deliver even more growth in the future. Its innovative approach to lending and use of AI technology make it a company to watch out for, and investing in its stock today could potentially secure a promising future.
Analysis – Upstart Holdings Intrinsic Value Calculation
After conducting a thorough analysis of UPSTART HOLDINGS‘s fundamentals, I have determined that the company’s fair value is around $53.8 per share. This was calculated using our proprietary Valuation Line, which takes into account various financial metrics such as revenue, earnings, and cash flow projections. Currently, UPSTART HOLDINGS stock is trading at $40.85 per share, which puts it at a 24.1% discount to its fair value. This suggests that the stock is currently undervalued and presents a potential buying opportunity for investors. One of the key factors driving UPSTART HOLDINGS’s fair value is its strong financial performance. The company has shown consistent growth in revenue and earnings, and has a solid cash flow position. This indicates that the company is well-positioned for future success and has the potential to generate strong returns for shareholders. In addition to its financial performance, UPSTART HOLDINGS also has a strong market position and a unique business model. As a leading fintech company, it offers innovative solutions in the lending industry, which has great growth potential. This further supports the company’s fair value and potential for future growth. Overall, based on our analysis, I believe that UPSTART HOLDINGS stock is currently undervalued and presents a good opportunity for investors to add it to their portfolio. However, as with any investment, it is important to conduct your own research and carefully consider all factors before making a decision. More…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Upstart Holdings. More…
| Total Revenues | Net Income | Net Margin |
| 508.12 | -240.13 | -45.0% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Upstart Holdings. More…
| Operations | Investing | Financing |
| -160.49 | -118.45 | 214.27 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Upstart Holdings. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 2.02k | 1.38k | 7.36 |
Key Ratios Snapshot
Some of the financial key ratios for Upstart Holdings are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 31.8% | – | – |
| FCF Margin | ROE | ROA |
| -34.0% | -23.5% | -7.4% |
Peers
The company was founded in 2012 and is headquartered in San Francisco, California. Upstart Holdings Inc operates in the United States and Canada. The company offers personal loans to applicants with a good credit history and a steady income. The company also offers loans to students and recent graduates. LendingClub Corp is a financial technology company that offers personal loans, small business loans, and student loans. The company was founded in 2006 and is headquartered in San Francisco, California. LendingClub Corp operates in the United States, Canada, and the United Kingdom. SoFi Technologies Inc is a financial technology company that offers student loans, personal loans, and mortgage loans. The company was founded in 2011 and is headquartered in San Francisco, California. SoFi Technologies Inc operates in the United States and the United Kingdom. PayPal Holdings Inc is a technology company that operates a global online payments system. The company was founded in 1998 and is headquartered in San Jose, California. PayPal Holdings Inc operates in 202 markets and has 193 million active account holders.
– LendingClub Corp ($NYSE:LC)
LendingClub is an online credit marketplace connecting borrowers and investors. LendingClub’s technology platform enables it to provide a differentiated customer experience, offer lower costs, and create better outcomes for borrowers and investors.
LendingClub’s mission is to transform the banking system to make credit more affordable and investing more rewarding. The company was founded in 2006 and is headquartered in San Francisco, California.
LendingClub has a market cap of $1.22B as of 2022 and a Return on Equity of 9.83%. The company’s technology platform enables it to provide a differentiated customer experience, offer lower costs, and create better outcomes for borrowers and investors.
– SoFi Technologies Inc ($NASDAQ:SOFI)
SoFi Technologies Inc is a financial technology company with a market cap of 5.22 billion as of early 2021. The company offers a range of financial services including student loan refinancing, personal loans, mortgage loans, and investing products. SoFi has been one of the fastest-growing companies in Silicon Valley in recent years and has raised over $4 billion in venture funding.
– PayPal Holdings Inc ($NASDAQ:PYPL)
PayPal Holdings Inc is a digital payments company that enables customers to send and receive money online. The company has a market cap of 103.2 billion as of 2022 and a return on equity of 11.16%. PayPal Holdings Inc operates in more than 200 countries and territories and has over 300 million active customers. The company enables customers to pay and get paid in more than 100 currencies.
Summary
Upstart Holdings, a lending platform that uses AI to assess creditworthiness, has experienced a dramatic surge in its stock since its IPO in December 2020. In just 10 months, shares have skyrocketed by 1,190%, making it a hot topic among investors. Some believe that investing in Upstart today could potentially set you up for life, while others are more cautious due to the stock’s rapid growth.
As with any investment, it is important to carefully analyze the company’s financials and future prospects before making a decision. Upstart’s innovative approach to lending and strong growth potential make it an intriguing option for investors seeking long-term gains.
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