This whole sector is undervalued currently, likely reflecting fears of another credit crunch. When SocietyOne raised $20m in funding in 2017, its valuation was based on one times the loan book. I recall that when it first looked at IPOing, they were talking about 65% of the loan book, with MME paying around 30% to acquire the business. At this lowest level, MME should be worth about $330m MC, or 6 times the current valuation. Should market sentiment return to 2017 levels, then that number's 20 times today's MC.
Note: I don't hold MME, but I am a long term investor in WZR, and the market opportunity is more than enough for both companies!
MME Price at posting:
7.4¢ Sentiment: Buy Disclosure: Not Held
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