Affirm Holdings (AFRM) is teaming up with Google to support the Agent Payments Protocol, or AP2. This initiative is aimed at powering agent-led payments across multiple platforms. This collaboration brings Affirm deeper into next-generation payment systems.
See our latest analysis for Affirm Holdings.
Affirm’s extended tie-up with Google headlines a streak of high-profile partnerships, including the recent in-store launch at Ace Hardware and its own nationwide 0% Days promotion. Investors have taken notice as Affirm’s share price has advanced 23.9% so far in 2025 and achieved a commanding 84.4% total return over the past year. That strong momentum reflects both optimism about future growth and a shift in risk sentiment around the buy now, pay later leader’s evolving role in digital payments.
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With shares up nearly 24% year-to-date and price targets still implying upside, is Affirm stock set for an even bigger breakout? Or are expectations for future growth already reflected in today’s valuation?
Affirm’s last close of $77.46 sits well below the most popular narrative’s fair value of $96.48, hinting at untapped share price potential. With international expansion accelerating and profits on the rise, the narrative sees Affirm’s value running ahead of the pack.
Rapid growth and strong engagement with Affirm Card, an actively invested product moving toward high attach rates and greater offline usage, expands Affirm’s addressable market beyond online retail, diversifies revenue streams, and drives higher frequency of transactions. This should accelerate GMV and contribute to margin improvement.
Read the complete narrative.
Want to know what really drives this ambitious price target? The future value hinges on bold revenue expansion, rising profit margins, and a profit multiple that could surprise even seasoned investors. Get the full story behind these headline-grabbing growth forecasts to find out which assumptions and numbers fuel such an aggressive fair value.
Result: Fair Value of $96.48 (UNDERVALUED)
Have a read of the narrative in full and understand what’s behind the forecasts.
However, key merchant losses or increased margin pressure could quickly challenge the bullish outlook, particularly if competitive dynamics or macro conditions deteriorate.
Find out about the key risks to this Affirm Holdings narrative.
While narrative-driven fair value points to strong upside, our market comparison tells a different story. Affirm trades at a price-to-sales ratio of 7.8x, which is nearly double its peer average of 4x and well above the fair ratio of 4.3x. Such a premium signals that a lot of future success is already priced in. What if growth stalls or sentiment changes?
