Upstart Holdings Stock Fair Value Calculation – Upstart Holdings Warns of Worsening Conditions in 2024
November 30, 2023
🌧️Trending News
Upstart Holdings ($NASDAQ:UPST), a leading financial services company, has recently warned of worsening conditions in 2024. Despite the company’s strong performance in recent years, it appears that 2024 may bring further challenges, and things may become more difficult. Over the years, Upstart Holdings has become a major player in the financial world, providing its customers with innovative solutions that help them meet their financial needs.
However, with the current state of the economy, Upstart Holdings is expecting that conditions will not be as favorable in 2024. The company has already taken steps to prepare itself for this eventuality by reviewing their risk management strategies and increasing their reserves to protect against potential losses. In addition to these measures, the company is also focusing on creating new products and services that will help their customers stay ahead of any potential economic downturns. They are also investing heavily in research and development to ensure that they remain competitive in the marketplace. Overall, Upstart Holdings is warning that conditions may become more difficult in 2024 and investors should be aware of the potential risks before making any decisions. The company is confident that their efforts to prepare for the future will pay off and help protect their customers’ investments.
Market Price
On Wednesday, UPSTART HOLDINGS issued a warning to shareholders that conditions could worsen next year. The company’s stock opened at $26.7 and closed at $26.5, representing a 1.4% increase from the prior closing price of 26.2. UPSTART HOLDINGS’ warning comes amidst a backdrop of heightened volatility in the stock market and other economic indicators. The company has warned that it may need to make adjustments to its operating strategies in order to stay competitive in the current market environment. The warning may have negative implications for investors, as the company may need to reduce costs and shift its focus away from growth in order to remain profitable in the coming year.
This could result in a decrease in share price should the company be unable to meet its goals. As such, UPSTART HOLDINGS has urged investors to review their portfolio and make any necessary changes before the start of the new year. While the warning may cause uncertainty for some investors, it is important to keep in mind that UPSTART HOLDINGS has been able to remain profitable in the past despite economic and market uncertainties. Live Quote…
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 |
| 515.48 | -253 | -46.1% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Upstart Holdings. More…
| Operations | Investing | Financing |
| -269.66 | -173.68 | 228.44 |
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 |
| 2k | 1.36k | 7.54 |
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 |
| 35.3% | – | – |
| FCF Margin | ROE | ROA |
| -55.3% | -24.8% | -7.9% |
Analysis – Upstart Holdings Stock Fair Value Calculation
Using our proprietary Valuation Line, we’ve determined that the fair value of UPSTART HOLDINGS share is approximately $62.5. However, its current trading price is only $26.5, undervalued by 57.6%. At this price, there is significant potential for investors to capitalize on an extremely attractive upside. We encourage investors to take advantage of this opportunity and invest in UPSTART HOLDINGS as soon as possible. GoodWhale’s analysis shows that the stock could yield a substantial return on investment in a short period of time. With our comprehensive financial and market analysis, investors can make informed decisions about their investments with confidence. More…
Peers
The company was founded in 2012 and is headquartered in San Francisco, California. Upstart Holdings Inc operates in the United States and Canada. The company offers personal loans to applicants with a good credit history and a steady income. The company also offers loans to students and recent graduates. LendingClub Corp is a financial technology company that offers personal loans, small business loans, and student loans. The company was founded in 2006 and is headquartered in San Francisco, California. LendingClub Corp operates in the United States, Canada, and the United Kingdom. SoFi Technologies Inc is a financial technology company that offers student loans, personal loans, and mortgage loans. The company was founded in 2011 and is headquartered in San Francisco, California. SoFi Technologies Inc operates in the United States and the United Kingdom. PayPal Holdings Inc is a technology company that operates a global online payments system. The company was founded in 1998 and is headquartered in San Jose, California. PayPal Holdings Inc operates in 202 markets and has 193 million active account holders.
– LendingClub Corp ($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, Inc. is an AI-driven, online lending marketplace that provides personal loans to borrowers. It utilizes non-traditional underwriting techniques to provide more affordable access to credit. Investment analysis of Upstart Holdings indicates that it is a company with strong potential for growth, as evidenced by its successful launch and subsequent rapid expansion. The company is well-positioned to capitalize on the ever-increasing demand for alternative financing options, and is likely to benefit from the continued growth of digital investments.
Upstart’s focus on automated decision-making and its ability to leverage advanced machine learning technologies have resulted in improved accuracy in loan approval rates and enhanced customer satisfaction. Despite recent market volatility, Upstart’s financials remain sound and the company remains well-capitalized for future growth opportunities. Given the company’s solid fundamentals and long-term outlook, it may be an attractive investment for those seeking exposure to digital lending.
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