Zips is annualising 480 million revenue from Dec 2020 and actually grew a lot more than Sezzle from Nov- Dec. Zip valued 4.2 billion. It did 102 million revenue last quarter. 40 million revenue just in Dec! Which is nearly half of Sezzles annual revenue from Dec 2020 doing 8 million revenue for the month or 96 million annualised.
Zip has a current 10x multiple of revenue valuation. Note zips revenue yield is 20 percent higher than Sezzles off a much larger base.
Sezzle has a 1.7 billion valuation off a current annualsied revenue Dec 2020 of 96 million revenue . sezzle is being valued at 17x revenue with market cap..
Afterpay we don't know latest Revenues they must be bad not disclosing them but they say they did 6.2 billion TTV and maintain similar revenue on merchants which is 3.9 percent and with late fees last FY that boosted afterpays return to 4.48 %. So good guess Afterpay is now annualising at 277 million revenue a quarter or 1.1 billion yearly. It has a market cap of 40 billion so it's being valued at a 40x multiple
You can see the pick of these based on the multiples.
affirm did 750 million USD last FY and also 97 % Yoy growth so expect maybe 1.4 to 1.5 billion revenue this FY. Which is about 1.8 billion revenue AUD this year. Its current market cap is about 36 billion AUD so it has a 20x multiple approx for its valuation.
So based off affirm I'd say Sezzle is fairly valued as it's already 17x revenue mkt cap. Affirm generates 10.9% revenue per dollar vs Sezzle 5.4% and zips 6.5% however Sezzle is growing very quickly albeit most that growth is just canada compared to the larger US mkt.afirm also generates a lot more revenue from its customer than Sezzle does it each customer spends more with affirm then szl.
This strongly suggests to me with affirm being a lot bigger than Afterpay on revenue that Afterpay is grossly over valued , Sezzle.and affirm fairly valued and Zip grossly undervalued. I own shares in Zip, but these numbers don't lie.
SZL Price at posting:
$8.90 Sentiment: None Disclosure: Not Held
