Key Stats for SoFi Technologies Stock
- Current Price: $14.90
- Target Price (Mid): ~$34
- Street Target: ~$20
- Potential Total Return: ~128%
- Annualized IRR: ~22% / year
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What Happened?
SoFi Technologies (SOFI) and Prudential Financial (PRU) said on October 21 that over 15 million SoFi members can buy Prudential’s SimplyTerm life insurance in the SoFi app. SoFi built and operates the digital experience. Pruco Life Insurance Company issues the policies; the product is not available in all states, and the release disclosed no financial terms. SoFi shares closed up 1.50% at $14.90 that day, a gain Benzinga tied to traders positioning ahead of the October 27 earnings report.
SoFi first sold term life through Protective Life in 2016. Any fees from the Prudential deal would need no balance-sheet capital. That is the kind of fee-based revenue CFO Chris Lapointe says SoFi needs to reach its 25% to 30% return target.
The Return Target Needs Revenue to Outgrow Equity
At the Goldman Sachs Communacopia + Technology Conference on September 8, Lapointe broke return on tangible common equity (ROTCE) into two parts. “It’s net income margin multiplied by revenue to average tangible equity,” he said. He put incremental net income margin at 29% over the last 12 months versus the prior 12, and said guidance implies 30%.
The second half is further away, and it is moving the wrong way. Using TIKR’s LTM revenue and period-end tangible book, revenue ran at about 0.54 times tangible equity a year ago and about 0.45 times now, as tangible equity grew faster than revenue. Lapointe’s goal is 1:1, which he expects to reach “as we continue to scale our fee-based revenue.”
Prudential plugs into a cross-sell path that already works: Lapointe said 85% of new SoFi Plus paid subscribers in the second quarter came from existing members. Products sold to existing members skip a second acquisition cost, he noted. Capital is not tight. He cited an 18.8% total risk-based capital ratio against a 10.5% regulatory minimum, and he wants to operate in the low to mid-teens.
TIKR tracks 25 analysts on SoFi. How many say “Buy”?
See the full breakdown of Buy, Hold, and Sell ratings on SoFi, along with Wall Street’s revenue and earnings estimates, all in one place. More than 500,000 investors use TIKR to research stocks like this one. See SoFi’s Analyst Ratings
At 2 Times Tangible Book, Consensus Sees a 10% ROE
TIKR shows SoFi at 2.04 times tangible book value on October 21, down from 5.65 times on September 30, 2025. Over that span, shares fell to $14.90 from $26.42 while tangible book per share rose to $7.30 from $4.67. LTM ROE is 7.1%, and TIKR consensus reaches only around 10% by 2028. ROE uses total equity, so ROTCE reads somewhat higher, but the gap to 25% stays wide.
Rates add to the doubt. Lapointe said 2026 guidance first assumed two rate cuts and now builds in one to two hikes, yet SoFi raised revenue guidance and held profit expectations. He spoke before the Fed’s September 16 hike, and it is unclear whether his range counts it. The next Fed decision lands October 28, a day after SoFi reports. On credit, he said 90-day delinquencies were 40 basis points in the second quarter, down from the first.
The multiple shows how far the market sits from Lapointe’s math. On TIKR, SoFi trades at around 21 times NTM earnings. That is near Dave (DAVE) at around 19 times, but well above Ally Financial (ALLY), SLM (SLM), and Upstart (UPST) at around 7 to 8 times.
TIKR Advanced Model Analysis
- Current Price: $14.90
- Target Price (Mid): ~$34
- Potential Total Return: ~128%
- Annualized IRR: ~22% / year
The mid-case prices SoFi at around $34 by December 31, 2030, around 128% above $14.90, or about 22% a year. Its 2025 to 2035 forecast table assumes revenue compounding around 18% a year and net income margins near 20%. That margin sits below the 30% in Lapointe’s formula.
The main risk is mix. If growth keeps coming from loans held at fair value rather than from fees, revenue-to-equity stays low, and rate moves hit the marks on those loans. If returns stay near the 7.1% LTM ROE, a 21 times forward multiple has little support next to lenders at 7 to 8 times.
Conclusion
October 27 is the first test. TIKR consensus calls for third-quarter EBITDA of around $437 million, up from $357.82 million in the second quarter, a ramp Lapointe said needs no help from rates. The formula check sits beside it. Revenue growing faster than tangible equity would move the 0.45 ratio toward 1:1, while another quarter of equity outgrowing revenue would push the return target further out.
So what is SoFi Technologies stock actually worth?
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
