Long Remitly on Discounted Valuation

about 2 months ago

Robert Leonard

"Yeah, it's trading under three times revenue. And I think that it's a company that has really not reached its potential profitability-wise. Even in that situation, you have a forward P.E. of close to 20. This asset should be trading at north of 5X sales, and it's trading right around 3."

Remitly is being highlighted as an attractive long-term stock due to its undervalued trading metrics. With the stock trading at under 3X revenue and a forward P.E. near 20, its current valuation is seen as a significant discount relative to its potential, especially if revenue growth continues at 30%+ per year. The analyst believes that, given robust digital remittance tailwinds and a superior digital solution compared to legacy players, Remitly is set to gain market share and deliver substantial returns.