In recent months, Sezzle Inc. (NASDAQ:SEZL) has witnessed a dramatic decrease in its stock price, falling about 60% over a period lasting less than half a year. This substantial decline follows a historic run since its public debut, shifting the company into what could be considered value territory after a prolonged stretch of elevated valuations.
Sezzle began trading on the Australian Securities Exchange (ASX) in 2019 at an initial price of A$1.22 per share, roughly equivalent to $0.84 USD. From that modest starting point, the stock enjoyed an extraordinary appreciation, surging by an immense 22,131% by mid-2025. Such exponential growth highlighted the early enthusiasm surrounding the BNPL space and investor optimism in Sezzle's prospects.
Operating in an increasingly saturated U.S. online credit market, Sezzle faces direct competition from notable industry participants including Affirm Holdings Inc. (NASDAQ:AFRM) and Klarna Group Inc. (NYSE:KLAR). These firms collectively vie for market share in the BNPL segment, which has become a focal point of alternate credit products, appealing to consumers seeking flexible payment options.
From a valuation perspective, Sezzle’s recent price pullback has prompted a reassessment of its investment profile through metrics such as the Value score used in Benzinga’s Edge Stock Rankings. This score integrates core elements of a company's fundamentals—earnings potential, asset base, growth trajectory—while adjusting for market valuation considerations. It benchmarks these factors to peer companies, yielding a percentile rank that helps investors gauge relative value.
Over the past week alone, Sezzle’s Value score rose from approximately 25.76 to 34.61 as the stock continued experiencing downward momentum across recent months. This shift coincides with a current trading multiple of around 16 times forward earnings. Such a valuation places Sezzle in a distinctly more affordable position compared to industry peers. Affirm currently trades at a notably higher forward earnings multiple around 74.63, and Klarna at roughly 52.36.
Analyst sentiment toward Sezzle remains positive despite the recent share price decline. The average consensus target price stands at $174.80, indicating a potential upside of 143% from present levels. This outlook reflects expectations for Sezzle’s business fundamentals to improve or for market conditions to favor a re-rating of its shares.
In addition to the Value score, other ranking dimensions highlighted in Benzinga's Edge Stock Rankings reveal a mixed technical and fundamental landscape for Sezzle. The company scores poorly in Momentum and Value metrics overall, suggesting challenges or volatility in market trends and lingering valuation caution. Conversely, Sezzle demonstrates a favorable price trend in the short term, which may point to some near-term stabilization or positive price actions worth monitoring.
Placed alongside competitors, Sezzle's valuation and stock performance invite scrutiny concerning its position in the BNPL segment. The contrasting forward earnings multiples—Sezzle at 16x, Affirm near 75x, and Klarna about 52x—underscore the diversity in market perceptions and risk appetites for these companies, which operate in a highly competitive environment. Investors might consider fundamental quality, subscriber growth, pricing discipline, and cost management factors inherent in these entities’ business models when evaluating potential investment opportunities.