SoFi Technologies (SOFI): fair value

Fair-value band

The normal range for this name runs from $11 (cheap) to $31 (expensive); it is now priced at $14.

That is 1.0σ below this name's own normal premium.

Is SoFi Technologies undervalued?

Fair, relative to its own history. SoFi Technologies trades at $14, 9% below the fair value this model estimates, but it has habitually traded 33% above fair value, and today's gap is 1.0σ below that norm, within the range it normally trades in, so the verdict is Fair: priced normally for itself, not necessarily fairly valued.

Diligence checklist

2 pass · 1 fail · 8 no data

• N/ACash actually collected from profit, last 12 months: n/aXBRL · This test doesn't mean anything for SoFi. In a financial services business cash and debt are the raw material, not the cost of doing business, so the ratio measures how much lending is going on rather than how good the earnings are. I judge a business like this on reserve coverage, net interest margin, and price against tangible book value next to a normal return on equity.
• N/AGap between paper profit and real cash: n/aXBRL · This test doesn't mean anything for SoFi. In a financial services business cash and debt are the raw material, not the cost of doing business, so the ratio measures how much lending is going on rather than how good the earnings are. I judge a business like this on reserve coverage, net interest margin, and price against tangible book value next to a normal return on equity.
• N/ADebt compared to one year of cash earnings: n/aXBRL · This test doesn't mean anything for SoFi. In a financial services business cash and debt are the raw material, not the cost of doing business, so the ratio measures how much lending is going on rather than how good the earnings are. I judge a business like this on reserve coverage, net interest margin, and price against tangible book value next to a normal return on equity.
• FAILHow much more it earns on capital than that capital costs: -9.80ppXBRL · SoFi earns 9.8 points LESS on the capital it employs than that capital costs. Every dollar reinvested here destroys value instead of creating it, which turns growth into a reason to worry rather than a reason to own the business. It has been below its cost of capital for 10 straight quarters. Three years of that is where I stop work, so this is worth watching rather than ignoring. The gap is wider than it was at the start of the window.
• PASSStock sold by executives and directors on the open market, last 6 months: $0.0MEDGAR · Insiders at SoFi sold $0.0M of stock on the open market in the last 6 months, which is inside the $5 million line I draw. Selling that size is ordinary diversification rather than a signal about the business. The sellers: Lavet Robert S $0.0M. A further $3.2M went out under pre-planned 10b5-1 schedules, which I don't count: those sales are set up months ahead and say nothing about what management thinks today. Options being exercised, and shares held back to cover the tax on them, are not sales and I don't count them either. filing ↗
• N/AHow long the CEO has run this company: n/aTEXT · I couldn't establish when SoFi's current chief executive took the job: no appointment appears in the 8-K item 5.02 history.
• N/AProfit margin held up during the last sales slump: n/aXBRL · There's no revenue downturn in SoFi's filed record, or gross profit isn't tagged, so this test has nothing to measure. It needs a bad patch to look at: without one, whether customers would stay through a price rise is untested rather than proven.
• N/ANormal profit margin across a full business cycle: n/aXBRL · SoFi gets no valuation from me: free cash flow after capital spending doesn't describe a business whose balance sheet IS the operation, so there is no normal margin to hold today's against.
• N/AHow much of the stock trades on an average day: $774MMARKET · SoFi trades about $774M of stock a day. Taking a fifth of that for ten sessions, I could build or exit roughly $1,548M without leaning on the price. There's no pass or fail here because the answer depends on how big a position I'd actually want to take.
• N/AShare of revenue from its single biggest customer: not establishedTEXT · I fetched and read SoFi's February 17, 2026 10-K but found no sentence about customer concentration. That isn't the same as the filing saying there is none: it may simply be worded in a way my search doesn't catch. Read Item 1 and the concentration-of-risk note yourself before trusting this row. filing ↗
• PASSWhether the company switched auditors in the last 2 years: noneEDGAR · Companies sometimes switch accounting auditors right before something bad is uncovered which can be a warning sign. SoFi hasn't changed auditors in the last 2 years, so there's no such red flag here.