Once one of the market's hottest BNPL names, Sezzle Inc. (NASDAQ: SEZL) has tumbled roughly 60% in less than half a year, a collapse that's now pushing the stock potentially into value territory for the first time in a long while.
Operating in an increasingly crowded U.S. online credit market alongside rivals such as Affirm Holdings Inc. (NASDAQ: AFRM) and Klarna Group Inc. (NYSE: KLAR), the company went public on Australia's ASX in 2019 at A$1.22, or roughly $0.84 per share, before delivering a staggering 22,131% rally through mid-2025.
The Value score in Benzinga's Edge Stock Rankings considers the core fundamentals of a stock, such as its earnings, assets, growth performance, and more, before weighing them against its market valuation, and being ranked as a percentile relative to peers.
Sezzle's Value score in Benzinga's Edge Rankings has soared from 25.76 to 34.61 within the span of a week, amid continued downward pressure on the stock for the past several months.
Following its pullback, the company trades at 16 times forward earnings, which makes it significantly undervalued, especially against peers such as Affirm and Klarna, which currently trade at 74.63 and 52.36 times forward earnings, respectively.
Analysts continue to maintain a bullish outlook on the stock, with an average consensus price target of $174.80, which represents an upside of 143% from current levels.