Over the past few weeks, $SOFI has consistently shown up on my...
Misunderstood Multibaggers@meeijer
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Jun 13, 2025
~4 min read
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Over the past few weeks, $SOFI has consistently shown up on my radar, so I took a deep dive into the company. Here’s my investment thesis and why I believe $SOFI is a no-brainer buy at current levels:
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1) History
SoFi, short for Social Finance, was founded in 2011 by four Stanford business school students. It began as a peer-to-peer lending platform aimed at helping students refinance student loans with more favorable terms.
Over time, $SOFI evolved into a comprehensive personal finance company. By the mid-2010s, it expanded its offerings to include mortgages, personal loans, and investment services.
In 2019, $SOFI launched SoFi Money and SoFi Invest, further broadening its appeal to younger, tech-savvy consumers seeking a modern banking experience.
The company became a publicly traded firm in 2021 through a SPAC merger with Social Capital Hedosophia, led by investor Chamath Palihapitiya.
Today, $SOFI operates as a full-fledged online bank after obtaining a national bank charter in 2022, positioning itself as a major player in digital finance and challenging traditional banking institutions with its all-in-one financial platform.
SoFi, short for Social Finance, was founded in 2011 by four Stanford business school students. It began as a peer-to-peer lending platform aimed at helping students refinance student loans with more favorable terms.
Over time, $SOFI evolved into a comprehensive personal finance company. By the mid-2010s, it expanded its offerings to include mortgages, personal loans, and investment services.
In 2019, $SOFI launched SoFi Money and SoFi Invest, further broadening its appeal to younger, tech-savvy consumers seeking a modern banking experience.
The company became a publicly traded firm in 2021 through a SPAC merger with Social Capital Hedosophia, led by investor Chamath Palihapitiya.
Today, $SOFI operates as a full-fledged online bank after obtaining a national bank charter in 2022, positioning itself as a major player in digital finance and challenging traditional banking institutions with its all-in-one financial platform.
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2) What does $SOFI exactly offer?
I'll split it into two parts, its lending products and financial services.
$SOFI's lending products are:
- Refinancing student loans ($SOFI was the 1st company to refinance federal and private student loans)
- Mortgages
- Personal loans
- In school loans (This allowed $SOFI to open the market to current students)
- Home equity loans
Additionally, $SOFI bought Wyndham in 2023 strengthening $SOFI's home loan technology and fulfillment capabilities.
I'll split it into two parts, its lending products and financial services.
$SOFI's lending products are:
- Refinancing student loans ($SOFI was the 1st company to refinance federal and private student loans)
- Mortgages
- Personal loans
- In school loans (This allowed $SOFI to open the market to current students)
- Home equity loans
Additionally, $SOFI bought Wyndham in 2023 strengthening $SOFI's home loan technology and fulfillment capabilities.
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2.2) Financial services
$SOFI's financial services consist of:
- Sofi Money (Combination checking and savings account)
- Relay (free financial tracking and insights tool)
- Invest and pioneers fractional shares
- Credit card
- Subscriptions (What do these offer?
• Higher APY
• $SOFI Travel Cash Back
• Credit card cash back boost
and a lot more)
Everything together forms a product suite called the One-Stop shop.
$SOFI's financial services consist of:
- Sofi Money (Combination checking and savings account)
- Relay (free financial tracking and insights tool)
- Invest and pioneers fractional shares
- Credit card
- Subscriptions (What do these offer?
• Higher APY
• $SOFI Travel Cash Back
• Credit card cash back boost
and a lot more)
Everything together forms a product suite called the One-Stop shop.
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3) TAM
$SOFI operates in the fast-growing digital banking and financial services space. This market is expected to grow at over 20% annually through at least 2030. This shows that the market $SOFI is located in, has huge potential and growth.
$SOFI operates in the fast-growing digital banking and financial services space. This market is expected to grow at over 20% annually through at least 2030. This shows that the market $SOFI is located in, has huge potential and growth.
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4) MOAT
• Growing brand awareness and TAM bring new members into $SOFI's One-Stop shop.
• Within this One-Stop shop, $SOFI's full suite of products and a superior value proposition empower members to spend less than they make and invest the rest. This crucial step builds trust and encourages members to adopt more $SOFI products.
• Strong xBuy (cross-product adoption) combined wit $SOFI’s scalable digital platform lowers customer acquisition costs and improves unit economics, leading to higher member Lifetime Values (LTVs).
• These higher LTVs enable $SOFI to innovate and iterate with new products and features, further strengthening the value proposition.
• This, in turn, drives sustained member and product growth, creating a virtuous cycle that serves as $SOFI’s MOAT.
• Growing brand awareness and TAM bring new members into $SOFI's One-Stop shop.
• Within this One-Stop shop, $SOFI's full suite of products and a superior value proposition empower members to spend less than they make and invest the rest. This crucial step builds trust and encourages members to adopt more $SOFI products.
• Strong xBuy (cross-product adoption) combined wit $SOFI’s scalable digital platform lowers customer acquisition costs and improves unit economics, leading to higher member Lifetime Values (LTVs).
• These higher LTVs enable $SOFI to innovate and iterate with new products and features, further strengthening the value proposition.
• This, in turn, drives sustained member and product growth, creating a virtuous cycle that serves as $SOFI’s MOAT.
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5) Financials
$SOFI adjusted net revenue was $771M for the 1st quarter of 2025 — growing 33% YoY
$SOFI adjusted EBITDA was $210M for the 1st quarter of 2025 — growing 27% YoY
These numbers are highly impressive and show continuing growth momentum.
$SOFI adjusted net revenue was $771M for the 1st quarter of 2025 — growing 33% YoY
$SOFI adjusted EBITDA was $210M for the 1st quarter of 2025 — growing 27% YoY
These numbers are highly impressive and show continuing growth momentum.
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6) Fair value
At the moment, $SOFI is trading at an EV/EBITDA of around 17. While that might seem high, it’s quite cheap for a company growing revenue at over 30% YoY and already being profitable.
A more appropriate valuation would be an EV/EBITDA of 25; which is typical for profitable, high-growth tech-enabled firms. At that multiple, $SOFI would be trading closer to $21 per share, representing significant upside from current levels.
At the moment, $SOFI is trading at an EV/EBITDA of around 17. While that might seem high, it’s quite cheap for a company growing revenue at over 30% YoY and already being profitable.
A more appropriate valuation would be an EV/EBITDA of 25; which is typical for profitable, high-growth tech-enabled firms. At that multiple, $SOFI would be trading closer to $21 per share, representing significant upside from current levels.
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7) Long-Term Price Target
If $SOFI keeps growing revenue at around 20% annually (which is easily doable looking at $SOFI’s current growth) and hit their target EBITDA margin of 30%, that would put them at around $2.4 billion in EBITDA by FY2030.
Now, if we apply a 20x EV/EBITDA multiple, (which is pretty reasonable for a profitable, fast-growing fintech with a full banking license) we get to an EV of about $48 billion.
That kind of valuation would bring the stock to around $50 per share. This translates to a return of over 200% over the next 5 years.
If $SOFI keeps growing revenue at around 20% annually (which is easily doable looking at $SOFI’s current growth) and hit their target EBITDA margin of 30%, that would put them at around $2.4 billion in EBITDA by FY2030.
Now, if we apply a 20x EV/EBITDA multiple, (which is pretty reasonable for a profitable, fast-growing fintech with a full banking license) we get to an EV of about $48 billion.
That kind of valuation would bring the stock to around $50 per share. This translates to a return of over 200% over the next 5 years.
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8) Conclusion
$SOFI is no longer just a student loan company; it’s building the future of banking. With a growing ecosystem of products, a loyal and expanding customer base, and profitability, $SOFI is one of the most complete fintech platforms in the market today.
Despite impressive financial growth and a solid long-term roadmap, the stock is still trading at a valuation that doesn’t reflect its full potential. For long-term investors, $SOFI offers a rare combination of growth, scalability, and upside — all at a reasonable price.
— I’m Bullish.
(This is NFA, just my opinion)
$SOFI is no longer just a student loan company; it’s building the future of banking. With a growing ecosystem of products, a loyal and expanding customer base, and profitability, $SOFI is one of the most complete fintech platforms in the market today.
Despite impressive financial growth and a solid long-term roadmap, the stock is still trading at a valuation that doesn’t reflect its full potential. For long-term investors, $SOFI offers a rare combination of growth, scalability, and upside — all at a reasonable price.
— I’m Bullish.
(This is NFA, just my opinion)