Limepay, page-20

Why BNPL valuations don't make sense to me with 2 examples:

Afterpay is valued at 130x Net Revenue
Splitit is valued at 250x Net Revenue

Let's say they are able in the long run to make 35% profit margin on net revenue (NPAT 35%, ITDA 25%, OPEX 40%).

That would mean APT would have a PE of 380 and SPT would have a PE of 700.

Let's say they are valued in the long run at a 20 PE, that requires revenue to increase 19x and 35x respectively.

That is just to justify current valuation, if you aim to double your investment APT needs to get to 38x revenue as an example.

Of course none of this may matter if it's just narrative or speculation or trading driving SP.