AFRM (Affirm Holdings) GF Value Rank : 3 (As of Jan. 19, 2025)

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What is Affirm Holdings GF Value Rank?

Affirm Holdings has the GF Value Rank of 3.

The GF Value Rank is determined by the price-to-GF-Value (P/GF Value) ratio, a proprietary metric calculated based on historical multiples along with an adjustment factor based on a company's past returns and growth and future estimates of the business' performance.

GuruFocus found that for valuation, we cannot simply give stocks a better GF Value rank simply because they have a lower P/GF Value ratio. Backtesting shows that over the long term, the two worst-performing groups are the most expensive group (with the highest P/GF Value ratio) and the least expensive group (with the lowest P/GF Value ratio).

We can understand why the most expensive group underperforms. We were initially puzzled by the underperformance of the least expensive group, but we realized there is a reason why some stocks are super cheap. If they look too undervalued, it is often because the businesses behind them are poor quality. The market realized this and gave them low valuations. In a way, the market is efficient.

After multiple backtesting analyses, we granted the stocks in third-cheapest percentile the highest GF Value rank, as they have performed the best over a full market cycle. Stock performance is actually not as sensitive to valuation as it is to growth and profitability. On average, the companies in the 20%-50% valuation groups have similar performances. Therefore, we should avoid the most expensive and the least expensive stocks. We can be more tolerant of valuation.

Please click GF Score to see more details on the GF Score's 5 Key Aspects of Analysis.

Competitive Comparison of Affirm Holdings's GF Value Rank

For the Software - Infrastructure subindustry, Affirm Holdings's GF Value Rank, along with its competitors' market caps and GF Value Rank data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Affirm Holdings's GF Value Rank Distribution in the Software Industry

For the Software industry and Technology sector, Affirm Holdings's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Affirm Holdings's GF Value Rank falls into.

Affirm Holdings GF Value Rank Related Terms

Thank you for viewing the detailed overview of Affirm Holdings's GF Value Rank provided by GuruFocus.com. Please click on the following links to see related term pages.

Affirm Holdings Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Affirm Holdings Inc (NAS:AFRM) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

AFRM:Mexico

Address

650 California Street, San Francisco, CA, USA, 94108

Website

https://www.affirm.com

Affirm Holdings Inc offers a platform for digital and mobile-first commerce. It comprises a point-of-sale payment solution for consumers, merchant commerce solutions, and a consumer-focused app. The firm generates its revenue from merchant networks, and through virtual card networks among others. Geographically, it generates a majority share of its revenue from the United States.

Executives

Libor Michalek	officer: President, Technology	C/O AFFIRM HOLDINGS, INC., 650 CALIFORNIA STREET, SAN FRANCISCO CA 94108
Katherine Adkins	officer: Chief Legal Officer	C/O AFFIRM HOLDINGS, INC., 650 CALIFORNIA STREET, SAN FRANCISCO CA 94108
Noel Bertram Watson	director	400 1ST AVENUE, C/O TRIPADVISOR, INC., NEEDHAM MA 02494
Christa S Quarles	director	351 PHELPS, IRVING TX 75038
Keith Rabois	director	C/O YELP! INC., 706 MISSION ST., SAN FRANCISCO CA 94103
Michael Linford	officer: Chief Financial Officer	3000 HANOVER STREET, PALO ALTO CA 94304
Gic Private Ltd	10 percent owner	168 ROBINSON ROAD, #37-01 CAPITAL TOWER, SINGAPORE U0 068912
Rodriquez Manuel Sanchez	director	C/O FANNIE MAE, 1100 15TH STREET, NW, WASHINGTON DC 20005
Jenny J Ming	director
Jacqueline D Reses	director	C/O SQUARE, INC., 1455 MARKET STREET #600, SAN FRANCISCO CA 94103
James D White	director	C/O CAVA GROUP, INC., 202-400-2920 14 RIDGE SQUARE NW, SUITE 5, WASHINGTON DC 20016
Jeremy Philips	director	C/O TRIPADVISOR, INC., 141 NEEDHAM STREET, NEWTON MA 02464
Jeremy Liew	director	2200 SAND HILL ROAD, MENLO PARK CA 94025
Siphelele Jiyane	officer: Vice President, Controller	C/O AFFIRM HOLDINGS, INC., 650 CALIFORNIA STREET, SAN FRANCISCO CA 94108
Silvija Martincevic	officer: Chief Commercial Officer	C/O AFFIRM HOLDINGS, INC., 650 CALIFORNIA STREET, SAN FRANCISCO CA 94108