The Trust Layer for Market Analysts

The analysis is a fundamental valuation of SoFi stock (SOFI) using a discounted cash flow model. The intrinsic value per share is calculated to be $16.16, based on projected free cash flows and a weighted average cost of capital (WACC) of 17.86%. The WACC is derived using a cost of debt of 7% and a cost of equity of 19.35%, with a beta of 2.45 and a market risk premium of 6%. The current market price of $15.23 suggests the stock is trading at a discount relative to its intrinsic value. However, the analysis also notes increased geopolitical risk and market volatility, which are factored into the discount rate. The projected cash flows are expected to grow significantly in the long run, supporting the intrinsic value calculation.