Paysafe Ltd (PSFE) Stock Analysis
Paysafe Ltd
▾ What's in the 64/100 risk score? (higher = riskier)
Contributions (weight × component score) sum to the total. This near-term score now includes fundamental health (leverage, FCF trend). It excludes the Altman Z score, whose retained-earnings input this filer does not report separately. See the Financial Health section for the full balance-sheet read.
How to read PSFE (pre-profit growth)
This company is reinvesting instead of generating profit, so a standard DCF cannot price it. The useful question is whether the growth the market is paying for is achievable — and whether the company can fund itself until then.
-
1
Reverse-DCF — the growth the price demands ↓
It shows exactly how fast the business must grow to justify today's price. Compare that to what comparable companies have actually achieved.
-
2
Cash runway ↓
Can it reach profitability before it has to raise money and dilute shareholders?
-
3
Interactive calculator ↓
Set your own growth + margin assumptions and see what the business would be worth if you are right.
Standard DCF doesn't fit PSFE well — but that's expected for this kind of business. The Rule of 40 (Pre-Profit Growth) Lens below uses the metrics actually used by analysts who value business services. Reverse DCF + Football Field also work as cross-checks.
How does PSFE stack up against its closest peers?
We take the 8 same-industry companies most similar to PSFE (similar size) and check what investors are paying for each dollar of their revenue (or profits). If PSFE is much more expensive on the same yardstick, that's a red flag — unless you have a specific reason it deserves a premium. For a leveraged business, EV/EBIT and FCF yield (both in the table) are usually more reliable than EV/Sales, because revenue multiples ignore differences in margins and debt.
▾ What's "EV / Sales" in plain English?
EV (Enterprise Value) = market cap + total debt − cash. It's "what you'd pay to buy the entire company outright" — you pay the market cap to shareholders and take over their debt, but you keep their cash. EV is fairer than market cap alone because it includes the debt the new owner inherits.
EV / Sales = EV ÷ annual revenue. So "2.5×" means investors pay $2.50 of enterprise value per $1 of yearly sales. Higher = market is paying more per dollar of sales (usually because they expect future growth or fat margins).
p25 / median / p75 are the 25th, 50th (middle), and 75th percentile of the peers' multiples. Half the peers fall between p25 and p75. The median (p50) is the typical peer — that's the benchmark we compare to.
| EV / SalesEV / Sales — For every $1 of yearly revenue, this is how many dollars investors pay to own the whole business (including debt). Why it matters: Works for pre-profit growth companies where P/E and FCF don't apply. The most apples-to-apples cross-company multiple because it ignores accounting choices. Reference: 1–3x for mature companies · 4–10x for software/SaaS · 10–20x for hypergrowth · >20x is rare and demanding Full explanation → |
0.9x / 1.1x / 5.0x |
| EV / Gross ProfitEV / Gross Profit — Enterprise value divided by gross profit — the multiple paid for what each dollar of sales contributes after direct costs. Why it matters: More refined than EV/Sales for high-margin businesses (software, marketplaces) where gross margin is the real economic engine. Reference: 8–15x for SaaS · 15–25x for hypergrowth software · >30x demanding Full explanation → |
1.1x / 5.1x / 14.1x |
| EV / EBITEV / EBITDA — Enterprise value divided by earnings before interest, tax, depreciation, and amortization. Why it matters: A classic "what would a private buyer pay" multiple — used in M&A. Strips out tax and capital-structure noise. Reference: 8–12x for mature businesses · 15–25x for growth · Below 5x often signals distress Full explanation → |
7.1x / 16.0x / 56.0x |
Bold middle number = median peer. Half the peers trade above it, half below. Computed over 8 same-industry peers; implausible multiples excluded.
⚠️ Important caveat: peer multiples only work if the peers are genuinely comparable. Always check the peer list below — if the auto-picker grabbed micro-caps or unrelated businesses, the comparison is noise. A medical-device giant priced against tiny biotech startups won't produce a useful signal.
▾ View peer list (8)
| Ticker | Company | Industry | Mcap | EV/Sales | EV/GP | EV/EBIT | FCF Yield |
|---|---|---|---|---|---|---|---|
| RMNI | Rimini Street, Inc. | Business Services | $362M | 1.0x | 1.7x | 7.1x | 12.1% |
| FVRR | Fiverr International Ltd. | Business Services | $397M | 0.9x | 1.1x | — | 6.0% |
| PAYS | Paysign, Inc. | Business Services | $406M | 5.0x | 8.5x | 56.0x | 7.0% |
| DVLT | Datavault AI Inc. | Business Services | $428M | 10.9x | 14.1x | — | 18.8% |
| GETY | Getty Images Holdings, Inc. | Business Services | $436M | 1.7x | — | 20.3x | 24.0% |
| IMXI | International Money Express, Inc. | Business Services | $451M | 1.1x | — | 11.6x | 10.7% |
| IRHOU | Iron Horse Acquisition II Corp. | Business Services | $298M | — | — | — | — |
| TNET | TRINET GROUP, INC. | Business Services | $506M | 0.3x | — | — | 31.3% |
Quality & solvency checks
Cheap stocks can be cheap for a reason. These screens warn when a low valuation comes paired with structural fragility.
Why it matters: Cheap-looking stocks (low P/E or P/B) often have low Z-scores because the market knows the company is dying. Z-score warns you before you fall into a value trap.
Reference: > 3.0 = safe zone · 1.81–3.0 = grey zone · < 1.81 = distress zone
Full explanation →
We can't produce a trustworthy Altman Z here: retained earnings weren't separately reported in our data, so a core input would have to be fabricated. Rather than show a categorical "distress" verdict from an invented number, we mark it unavailable. The classic manufacturing-calibrated model also fits asset-light businesses like this one poorly. Judge financial health from the leverage, cash position, and the measurable Piotroski checks instead.
▾ The checks — what passed, what didn't (and what we couldn't measure)
-
✗ Positive net incomeNet income -$182.5M in FY2025.Why this matters: Does the company actually earn a profit? Sustained losses eventually force it to raise money — diluting you — or take on debt.
-
✓ Positive operating cash flowOperating cash flow $236.2M (was $253.8M the prior year).
-
✓ Cash flow backs up reported profitOperating cash flow $236.2M vs net income -$182.5M.
-
✗ Return on assets improvingReturn on assets -3.8% vs 0.5% a year ago.Why this matters: Is the company squeezing more profit out of each dollar of assets than last year? Rising = getting more efficient; falling = the opposite.
-
✗ Debt load (vs assets)Long-term debt is 54.4% of assets vs 49.1% a year ago ($2,615.2M of $4,803.6M assets).Why this matters: Rising debt relative to assets means more risk and more cash going to interest instead of shareholders. Falling debt is a sign of strengthening.
-
✓ Short-term liquidity (current ratio)Current ratio 1.24x vs 1.16x a year ago.
-
✓ Share count (dilution)Share count declined 6.2% (61.9M → 58.1M year-over-year), so the no-dilution check passed. (One-year change; the multi-year buyback pace can differ.)
-
· Pricing power (gross margin) (n/a — data not reported; not scored)
-
✗ Sales per asset (asset turnover)Asset turnover 0.35x vs 0.35x a year ago. Flat year-over-year — the point requires strict improvement, so it isn't awarded, but this is not deterioration.Why this matters: Asset turnover measures how much revenue each dollar of assets generates. Rising = more productive use of the asset base.
Missing data is never counted as a pass or a fail — it's shown as n/a and excluded from the denominator. Each check compares the company against its own prior year.
What if you assume different inputs?
Here's where we land — and what happens if you change the assumptions. Drag the sliders to set your own Discount RateDiscount Rate — The annual return you demand for taking single-stock risk instead of buying a safe Treasury or index fund.
Why it matters: Higher discount rate = stricter valuation (a stock has to produce more cash to be worth holding). Lower = more generous.
Reference: 8–12% is standard · 9–10% matches S&P 500 historical return · Below 7% is illogical for single-stock risk
Full explanation → (the annual return you demand for single-stock risk) and terminal growth; the value updates live so you can see whether the stock looks cheaper or richer. The discount rate starts at 10.0%, the figure our model used for PSFE. Open Advanced to also change beta, growth and the rate path.
Note: no headline intrinsic value is published for this stock (the valuation is held for a data-quality reason — see the notes above). The calculator below is a what-if tool: the values it produces are your assumptions played out, not our estimate.
A full intrinsic value isn't shown for PSFE because the valuation is currently held for a data-quality reason (see the guardrail notes above). The reverse-DCF reading still works — it needs only the price and cash flow — but we won't publish a forward value until the underlying data passes our checks.
—
⚙ Advanced — tinker with every input (beta, growth, rate path, margin → full intrinsic value)
A standard discounted cash flowDCF — Discounted Cash Flow — sums up all future cash a business will produce, adjusted for the fact that future dollars are worth less than dollars today.
Why it matters: It is the most fundamentally honest valuation method when applicable — but only works for companies with predictable, positive cash flow.
Reference: Best for: mature, profitable businesses. Fails for: pre-profit growth, banks, REITs.
Full explanation → (DCF) valuation is not meaningful for Paysafe Ltd due to its negative net income in the latest period, indicating a cash-burning growth stage. While operating cash flow is positive, the model's low confidence and the market pricing it at 16x the model's intrinsic valueIntrinsic Value — Our DCF model's estimate of what each share is mathematically worth based on projected cash flows.
Why it matters: Compare to current price. Below IV = potentially undervalued. Above IV = priced for growth that must actually happen.
Reference: Model-derived; quality depends on data and assumptions.
Full explanation → suggest investors are betting on future growth and margin expansion. The market may be assigning value to the potential for regulatory wins in emerging payment sectors, which is not in the model. The primary quantifiable risk is the company's inconsistent profitability, with net income being negative in the latest period and only profitable in 1 out of 5 years.
As of 3 months ago
Anatomy of a share
What you're buying per share. Bars are at the same scale so you can see the relative size of revenue, costs, cash flow, and debt — not just read them in a table.
What's free cash flow / what do these mean?
Revenue per share — how much the business earns from customers, divided by the number of shares outstanding. Top of the income statement.
Earnings per share — profit left after operating costs, interest, and taxes, per share. Two versions appear on this page and are not interchangeable: GAAP diluted EPS uses the company's weighted-average diluted share count during the reporting period (this is the "earnings" in "price-to-earnings"); net income per current share divides annual net income by today's share count. They differ whenever the share count has changed.
Owner-earnings free cash flow per share — the cash the business produces for shareholders. Savng's owner-earnings FCF subtracts capital expenditures and stock-based compensation from operating cash flow (SBC is a real dilution cost even though it's non-cash). This is deliberately more conservative than "standard" FCF, which subtracts only capital expenditures — so our figure is lower than the headline FCF you'll see elsewhere. FCF funds dividends, buybacks, debt repayment, and acquisitions; a company can report positive earnings yet negative FCF.
Debt per share — total interest-bearing borrowings divided by shares. High debt-per-share next to thin FCF-per-share is a fragility signal.
What you actually need to decide
Every stock price is a disagreement. Here's the single thing that must go right for the bulls, the single thing that breaks the thesis, and the concrete signposts to watch so you can update your view as real results arrive.
- Next quarter's net income profitability
- Acceleration in revenue growth rate
- Further reduction in long-term debt
The trend, in plain numbers (FY2024 → FY2025, latest reported)
Straight from the financial statements — no model, no opinion. For a small or unprofitable company, the direction of these numbers usually tells you more than any single valuation.
- Free cash flow fell to $191.3M.
- Swung to a loss of -$182.5M (from a profit the prior year).
Nothing was clearly improving year-over-year.
Roughly flat: Revenue was flat 0% to $1.70B.
Management & Leadership
Paysafe Ltd is currently led by CEO Bruce Lowthers, who assumed the role in May 2022. The company focuses on specialized payment solutions. Philip McHugh was the previous CEO.
What They Make
Paysafe Ltd provides a suite of payment solutions, including payment processing, digital wallets, and online cash solutions, primarily serving businesses and consumers globally.
End Markets
Revenue Drivers
Why Is It Priced Like This?
Why Customers Pay
What we use instead: earnings (P/E, EV/EBIT), book value (P/B) — computed from the figures this company does report, shown in the sections below. Those numbers are unaffected by the missing cash-flow data.
The market's pricing for PSFE, at 16x the model's intrinsic valueIntrinsic Value — Our DCF model's estimate of what each share is mathematically worth based on projected cash flows.
Why it matters: Compare to current price. Below IV = potentially undervalued. Above IV = priced for growth that must actually happen.
Reference: Model-derived; quality depends on data and assumptions.
Full explanation →, is likely driven by expectations of future revenue growth (currently 3.4%/yr) and potential margin expansion, rather than current cash flow. While operating cash flow is positive, net income is negative, suggesting investors are looking beyond current profitability. The market may be assigning value to network effects pre-monetization in its platform offerings, which is not in the model.
Business Model & Valuation
How They Make Money
Growth / Revenue DCF
Extreme market premium (P/FCF 165x): market is pricing future growth far beyond current FCF. Using revenue/margin model.
Show advanced inputs
| Revenue Growth | 3.4% |
What this model does NOT do: this is a consolidated owner-earnings FCF model. Standalone segment assumptions: none. It does not project product, services and recurring/cloud lines independently; their combined effect is embedded in the historical revenue and cash-flow trend the model extrapolates. The calculator above can only approximate a segment's impact through the single consolidated growth rate — it cannot model any one line separately. For a true segment-level view, build a separate model from the company's segment disclosures.
Maturity & Competitive Position
Moat Signals
Revenue is growing at 3.4% per year over four years, from $1487M to $1701M.
Geography & Markets
Paysafe Ltd operates globally, providing payment solutions across various international markets. Specific geographic revenue mix percentages are not available from current data sources, but it has a significant presence in North America and Europe.
Geographic Risks
Market Signals
These are timing signals, not value signals — they describe the stock's recent price behavior, not what the business is worth. Use them for the "the thesis looks good, but is now the moment?" question. Each tile below explains what it's saying.
Why it matters: Short-term contrarian indicator. Extreme readings often precede mean reversion, though not always.
Reference: 30–70 normal · >70 overbought · <30 oversold
Full explanation → (14)45.6NeutralMomentum is balanced — neither overbought nor oversold.
Why it matters: When the fast line crosses above the slow line, short-term momentum is turning up; below, turning down. A timing cue, not a value signal.
Reference: Line above signal = bullish momentum · below = bearish
Full explanation →BearishLine below signalThe fast trend is below the slow trend — short-term momentum is currently downward.
Technicals describe price, not the business. A great company can have a "bearish" tape (a buying chance) and a weak one a "bullish" tape (a trap). Pair these with the valuation and health sections above.
QUALITY
Data Quality & Risk Flags (5 notes — click to expand/collapse)
Guardrail Notes (5)
- Revenue/margin projection model used - trailing FCF may understate growth runway at current scale.
- Terminal growth (3%) capped to 2.7% (80% of near-term growth 3.4%).
- Price is far above the model output - market may be pricing optionality, narrative catalysts, or margin expansion beyond what trailing cash flows support.
- Extreme valuation (P/IV withheld — see the note above); output dominated by data/units issue (often a multi-class share-count mismatch). Suppressed.
- DATA UNAVAILABLE: per-share values suppressed due to missing/unreliable shares data.
FINANCIALS
Financial Statements (5-year tables — click to expand)
From Paysafe Ltd's SEC filings (EDGAR).
Income (5yr)
| Year | Revenue | Net Income | EPS |
|---|---|---|---|
| 2025 | 1.7B | -182.5M | $-3.14 |
| 2024 | 1.7B | 22.2M | $0.36 |
| 2023 | 1.6B | -20.3M | $-0.33 |
| 2022 | 1.5B | -1.9B | $-30.78 |
| 2021 | 1.5B | -111.0M | $-1.84 |
Cash Flow (5yr)
| Year | Operating CF | CapEx | − SBC & adj. | Free Cash Flow |
|---|---|---|---|---|
| 2025 | 236.2M | 12.6M | 32.3M | 191.3M |
| 2024 | 253.8M | 15.9M | 38.5M | 199.3M |
| 2023 | 234.0M | 12.8M | 28.9M | 192.3M |
| 2022 | 237.2M | 4.5M | 62.4M | 170.3M |
| 2021 | 261.5M | 5.6M | 101.8M | 154.1M |
How we define FCF: operating cash flow − capital expenditure − stock-based compensation (owner-earnings basis — SBC is a real cost to shareholders even though it's non-cash). Latest year: 236.2M − 12.6M − 32.3M (SBC & adj.) = 191.3M. This is the same owner-earnings FCF definition the valuation model uses, though the DCF's starting value is a projected from revenue × terminal margin, not this single year.
Balance Sheet
| Total Assets | 4.8B |
| Total Liabilities | 4.1B |
| Equity | 655.0M |
| Total Debt | 2.6B |
Similar companies worth a look
Same sector and industry, similar fundamentals shape. Verify everything yourself — this list is computed mechanically and does not reflect our judgment about whether any of these are a good investment.
