IPO Performance and Valuation:
-IPO Pricing: eToro priced its IPO at $52 per share, above the anticipated range of $46–$50, raising approximately $620 million and achieving a valuation of around $4.2 billion.
-Market Debut: On its first trading day, eToro's shares surged, opening at $69.69 and closing at $67, pushing its market capitalization to approximately $5.5 billion.
Financial Metrics:
-Revenue and Profit: In 2024, eToro reported revenues of $931 million and a net income of $192 million, marking a significant turnaround from a net loss of $21 million in 2022.
-Valuation Multiples: At the IPO price of $52, eToro's valuation was about 4.5 times its 2024 revenue and approximately 23.4 times its net income. At the current share price of $62.07, these multiples increase to roughly 5.8 times revenue and 28.6 times net income.
Comparative Analysis:
Industry Peers: Compared to peers like Robinhood, which trades at higher multiples, eToro's valuation appears moderate. However, it's essential to consider differences in business models, market presence, and growth trajectories.
Considerations:
-Growth Prospects: eToro's expansion into new markets and product offerings could justify higher valuations if growth targets are met.
-Regulatory Environment: The company has faced regulatory challenges in various jurisdictions, which could impact future operations and profitability.
Disclaimer:
This is just my personal opinion and not professional financial advice. Any investment decisions you make are entirely your responsibility. I am not a licensed financial advisor, and I do not guarantee the accuracy or completeness of the information provided. The figures mentioned may be inaccurate, outdated, or subject to change — so please do your own research and due diligence before making any financial decisions. Investing involves risk, and any losses incurred are at your own risk.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.