Now that Klarna has a new appreciation, is Affirm cheap? – Marketingwithanoy

Klarna’s announcement that the much anticipated round of funding has come to an end, bringing one of the steepest valuation resets in memory, at least as far as operating business is concerned. Now worth $6.7 billion after raising $800 million, the European BNPL provider is worth a fraction of itself last year, although the new war chest means the company is now well fueled to execute on its business plan.

The movement of Klarna’s price was something to behold. Valued at more than $46 billion in 2022, prices for the company’s next round of financing are reported to be around $50 billion initially. That became about $30 billion, then $15 billion, then $10 billion. Klarna’s latest price cut feels like punishment. But is it real? And now that Klarna has seen its valuation plummet, is Affirm – a US-based, publicly traded rival in the buy now, pay later (BNPL) space – cheap?

Let’s do some math and find out.

Klarna vs. Affirm: A Lesson in Fintech Valuations

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