Aug. 15 at 5:48 PM
$TREE great move. hard to know what “fair value” is here. They are now trading at a slight premium to many comparable small caps in the broader fintech space (at least that I track). But there is still a considerable valuation gap between TREE and other peers that are growing faster or may have a more robust platform like
$SOFI or
$UPST. Those both trade at over 25x forward EBITDA so hard to know if TREE can continue to close that gap with rate cuts and continued execution (implied share price of about
$110 at 15x forward EBITDA) or if it’ll take a step function change in growth / their outlook to continue on this path and warrant a “premium” multiple.