Is SoFi Technologies Still Worth Considering After Doubling in Price So Far in 2025?
If you’ve ever wondered whether SoFi Technologies is trading at a bargain or a premium, you’re in the right place for a fresh, clear-eyed take on its value.
The stock has jumped 6.6% in the past week, and it’s up a remarkable 101.6% since the start of the year. This is bound to catch the attention of both optimists and skeptics.
Recent headlines highlight SoFi’s expansion in digital banking and ongoing momentum in member growth, which have kept the company firmly in the spotlight and driven investor interest. Announcements about new financial products and pushes into new markets are helping shape market sentiment.
Despite all this activity, SoFi currently scores 0 out of 6 in our valuation checks. This means it is considered undervalued on none of the automated metrics we track. In the next sections, we’ll break down the usual approaches to valuation and hint at a smarter way to assess the company’s worth that you won’t want to miss.
SoFi Technologies scores just 0/6 on our valuation checks. See what other red flags we found in the full valuation breakdown.
The Excess Returns model examines how much value a company creates over and above its cost of capital. In other words, it measures how efficiently a company uses shareholders’ equity to generate profit, after accounting for the cost of that equity. This approach is particularly revealing for businesses like SoFi Technologies, where high growth and reinvestment rates play a major role in future value.
For SoFi Technologies, the Excess Returns valuation shows:
Book Value: $7.29 per share
Stable EPS: $0.69 per share (Source: Weighted future Return on Equity estimates from 5 analysts.)
Cost of Equity: $0.61 per share
Excess Return: $0.07 per share
Average Return on Equity: 8.97%
Stable Book Value: $7.68 per share (Source: Weighted future Book Value estimates from 7 analysts.)
Based on these figures, SoFi is generating a small excess return relative to its cost of equity. However, the model reports the intrinsic value at $9.25 per share, while the stock price trades at more than triple that level. This signals SoFi is about 207.9% overvalued according to this methodology.
The price-to-earnings (PE) ratio is a cornerstone valuation metric, especially for profitable companies like SoFi Technologies. It allows investors to compare the price they pay for a stock relative to the company’s earnings, making it a helpful starting point to gauge how the market is pricing current and future profits.
It is important to remember that what qualifies as a “normal” or “fair” PE ratio depends on expected earnings growth and broader risk factors. Companies with higher growth prospects and lower risks often deserve a premium, while those facing uncertainty might trade at a discount.
SoFi Technologies is currently trading at a lofty PE ratio of 53.7x. For perspective, the average PE across the Consumer Finance industry is just 9.7x, and its listed peer group averages 15.3x. This high multiple highlights the market’s very optimistic view of SoFi’s profitability.
Here is where the Simply Wall St “Fair Ratio” comes into play. Unlike industry averages or simple peer comparisons, the Fair Ratio is a more tailored benchmark, factoring in SoFi’s unique blend of earnings growth, profit margins, risk profile, size, and industry context. For SoFi, this proprietary Fair Ratio sits at 25.4x, providing a more customized reference point for valuation.
With SoFi’s actual PE multiple more than double its Fair Ratio, the stock appears significantly overvalued using this approach.
Earlier we mentioned that there is an even better way to understand valuation, so let’s introduce you to Narratives. A Narrative is a simple, approachable tool that lets you connect your view of SoFi Technologies’ story with your own financial forecasts and ultimately a fair value estimate.
Rather than relying solely on historical numbers or rigid formulas, Narratives allow you to bring your perspective into the equation. This approach combines your expectations for SoFi’s future revenue, profit margins, or market trends with a valuation that updates as your view or the facts change. Narratives link the story you believe about the company, your forecasts for its growth and performance, and a dynamic estimate of what the stock is really worth.
On Simply Wall St’s Community page, millions of investors share and update Narratives in real time as news and earnings are released, giving you an accessible and engaging way to track how fair value moves with new developments. Narratives help you make smarter decisions by showing you, at a glance, if SoFi’s current price is above or below the fair value you (or the community) expect. This allows you to decide when to buy or sell with more confidence.
For example, SoFi’s Narratives currently range from a bullish target of $30 to a bearish target of $6, showing how different investors can interpret the same company’s future in widely different ways.
NasdaqGS:SOFI Community Fair Values as at Nov 2025
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
