Understanding Remitly Global Valuation

Remitly's global valuation is a complex topic, but let's break it down. Remitly's valuation is estimated to be around $5.5 billion.

Remitly's valuation has been influenced by its significant growth in recent years. The company has seen a substantial increase in its revenue, reaching $1.3 billion in 2020.

Remitly's valuation is also impacted by its strong market position. The company is one of the largest players in the global remittance market, with a significant presence in the United States and other key markets.

Remitly's valuation has been driven by its ability to innovate and expand its services. The company has introduced new products and features, such as its digital wallet and mobile app, to improve the remittance experience for its customers.

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Remitly's valuation has been on the rise, with a reported $1.5 billion valuation in 2020. This is a significant increase from its previous valuation of $1.1 billion in 2019.

The company's revenue has been growing steadily, reaching $340 million in 2019, up from $230 million in 2018. This growth is a testament to Remitly's ability to expand its customer base and increase its market share.

Remitly's gross profit margin has also been improving, reaching 85% in 2019, up from 78% in 2018. This increase in profitability is a key factor in the company's growing valuation.

The company's operating expenses have been increasing, but at a slower rate than its revenue growth. In 2019, Remitly's operating expenses reached $140 million, up from $100 million in 2018.

Remitly's valuation is a crucial aspect to consider, and we can start by looking at its Price to Sales Ratio (PS Ratio) compared to its peers. RELY's PS Ratio is 3.8x, which is slightly higher than the peer average of 3.6x.

The table below shows a breakdown of RELY's PS Ratio compared to its peers, including market cap and forecasted growth.

RELY's PS Ratio is slightly higher than the peer average, indicating that it may be considered expensive compared to its peers.

Remitly Global doesn't pay dividends at this time, so there's no dividend per share or dividend yield to consider.

The buyback yield and shareholder yield are both negative, at -8.12%, indicating that the company is buying back shares instead of paying dividends.

The earnings yield is also negative, at -1.38%, which suggests that the company's earnings aren't generating enough cash to support a dividend payment.

On the other hand, the free cash flow (FCF) yield is a more positive 2.22%, indicating that the company has some cash flow to work with.

Here's a quick summary of the dividend-related metrics for Remitly Global:

RELY's Price to Sales Ratio is worth taking a closer look at. The company's forward PS ratio is 3.8x, which is more expensive compared to its peers.

The peer average forward PS ratio is 3.6x, so RELY is slightly more expensive. This is a key consideration when evaluating RELY's valuation.

Let's take a look at some of RELY's peers. DLO, for example, has a forward PS ratio of 5.4x, which is higher than RELY's. However, DLO's estimated growth rate is also higher at 22.0%.

Here's a comparison of RELY's forward PS ratio with some of its peers:

RELY's forward PS ratio is indeed more expensive compared to the peer average, and it's worth considering this when evaluating the company's valuation.

The Price-to-Sales Ratio is a useful metric for evaluating a company's valuation. It's calculated by dividing the stock price by the sales per share.

RELY's current Price-to-Sales Ratio is 3.8x, which is higher than its estimated Fair Price-to-Sales Ratio of 3.3x. This suggests that RELY is overvalued compared to its peers.

Here's a comparison of RELY's current Price-to-Sales Ratio and its Fair Price-to-Sales Ratio:

In this case, RELY's high Price-to-Sales Ratio compared to its Fair Price-to-Sales Ratio indicates that it may be overvalued, making it a less attractive investment option.

Remitly's IPO was a significant milestone in its history, raising $725 million in its initial public offering.

Remitly's market performance was impressive, with its stock price increasing by 25% on its first day of trading.

Remitly's valuation has been steadily increasing over the years, reaching $10.4 billion in 2021.

Remitly's growth has been fueled by its innovative approach to cross-border payments, which has disrupted the traditional remittance market.

Remitly's revenue has been steadily increasing, reaching $1.2 billion in 2021.

Remitly's customer base has grown significantly, with over 5 million active customers worldwide.

Remitly's expansion into new markets has been a key driver of its growth, with the company now operating in over 150 countries.

Remitly's acquisition of SendWave in 2022 has further solidified its position in the market.

The DCF Analysis is a crucial step in determining the value of a company like Remitly Global Inc. It's a way to estimate the present value of future cash flows.

The DCF Value of one Remitly Global Inc. stock is estimated to be 17.74 USD. This is significantly lower than the current market price of 24 USD, indicating that the stock is overvalued by 26%.

To calculate the DCF Value, the present value of future cash flows is first determined using a chosen discount rate. This results in a present value of 2.9B USD.

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The company's capital structure is then used to derive the total Equity Value from the present value of cash flows. This Equity Value is then divided by the total number of outstanding shares to yield the DCF Value of 17.74 USD per share.

The present value calculation is the starting point of the DCF valuation process, where the forecasted cash flows are projected and discounted using a chosen discount rate.

Remitly's analyst consensus is a strong indicator of the company's potential for growth. Analysts are predicting a 12-month price target of $31.22, representing a 32% increase from the current share price of $23.66.

The analyst consensus is based on predictions from 9 analysts, with a dispersion of 8.8%, indicating a relatively narrow range of agreement. This level of agreement suggests that the analysts have a statistically confident view of Remitly's future performance.

Here are the top 3 analysts contributing to the consensus:

These analysts have a strong track record of predicting Remitly's revenue and earnings, and their predictions are updated throughout the day.

The calculation of a company's value is a crucial step in understanding its worth. The present value of a company's forecasted cash flows is calculated using a selected operating model.

To determine this value, you can adjust key parameters such as the discount rate and terminal growth. This will give you an idea of how changes in these inputs affect the valuation.

The DCF Value is calculated by first determining the present value of the cash flows, which is then used to derive the total Equity Value. This is done by employing the company's capital structure.

The present value of Remitly Global Inc's future cash flows is calculated at 2.9B USD, using the DCF operating model and a chosen discount rate.

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Remitly's financial position is a key aspect of its valuation. The company has a current ratio of 2.66, indicating it has sufficient liquid assets to cover its short-term liabilities.

Remitly's debt levels are also noteworthy. With a Debt / Equity ratio of 0.02, the company has a very low debt burden, which can be a significant advantage in terms of financial flexibility.

Here's a summary of Remitly's key financial ratios:

Remitly Global's income statement paints a picture of a company facing significant financial challenges. Their revenue for the last 12 months was $1.18 billion, a substantial figure, but it wasn't enough to offset their losses.

The company reported a net loss of $66.28 million, which translates to a loss per share of -$0.35. This is a stark reminder that even with a large revenue stream, a company can still struggle financially.

Their gross profit was $693.47 million, but this wasn't enough to cover their operating expenses, resulting in an operating income of -$65.07 million. Pretax income was also negative, coming in at -$93.88 million.

Here's a summary of Remitly Global's key income statement metrics:

It's clear that Remitly Global faces significant financial challenges, and their income statement highlights the need for the company to focus on reducing costs and improving profitability.

The company's current ratio is a healthy 2.66, indicating it has more than enough liquid assets to cover its short-term debts.

This ratio is calculated by dividing current assets by current liabilities. A ratio above 1 is generally considered good, and in this case, the company has a significant cushion.

The quick ratio, on the other hand, is 1.91, which is also a strong indicator of the company's ability to meet its short-term obligations.

Here's a breakdown of the company's financial position:

The company's debt-to-equity ratio is a minuscule 0.02, indicating that it has a very low level of debt compared to its equity.

This is a great sign, as it suggests that the company is not over-leveraged and has a strong financial foundation.

However, the interest coverage ratio is a concerning -21.27, which means the company is not generating enough cash to cover its interest payments.

This could be a sign of a larger issue, such as a decline in revenue or an increase in interest rates.

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