Using a Revenue DCF model with operating margin convergence from -64.3% to a target of 24.1% over 5 years, discounted at a WACC of 7.0%, Better Home & Finance Holding Company (BETR) has an intrinsic value of $12.65 per share (range: $0.34 – $156.95).
Using the industry peer median EV/Revenue multiple (trailing + forward), Better Home & Finance Holding Company (BETR) has a fair value of $14.47 based on 6 comparable companies in the Financial - Mortgages industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing EV/Revenue | Forward EV/Revenue | |
|---|---|---|---|
| Better Home & Finance Holding CompanyBETR | 445 | 4.9x | 5.9x |
| Selective Insurance Group, Inc. | 4,669 | 1.0x | 1.2x |
| Encore Capital Group, Inc. | 1,618 | 3.2x | 4.4x |
| Jefferson Capital, Inc. Common Stock | 1,078 | 4.5x | 47.3x |
| Root, Inc. | 617 | 0.1x | 0.1x |
| loanDepot, Inc. | 493 | 3.4x | 5.7x |
| Horizon Technology Finance Corporation | 217 | 14.3x | 6.2x |
| Industry Median | 3.3x | 5.0x | |
| (*) Revenue | 191 | 161 | |
| = Enterprise Value | 627 | 814 | |
| (-) Net Debt | 499 | 499 | |
| Equity Value | 128 | 316 | |
| (/) Outstanding shares | 15 | 15 | |
| Fair Price | $8 | $21 | |
Disclaimer: Sweet Value Lab provides estimated intrinsic values for informational purposes only. This is not financial advice. All models rely on assumptions that may not reflect future performance. Always do your own research before making investment decisions.