Do you think SoFi is expensive? This chart might change your mind.

SoFi Technologies (SOFI 2.50%) It is only the 67th-largest U.S. bank by total assets, but it has attracted significant attention due to its all-digital, high-growth platform. The lending and financial services platform has evolved from a highly praised, overvalued and unprofitable business to a solid, proven and profitable business.

However, it still looks like SoFi shares are priced at a premium on the surface, but it may not be as expensive as you think. Let’s see why.

Take a look at this diagram

According to standard valuation metrics, such as forward 12-month price-to-earnings ratio or price-to-sales ratio, SoFi stock could be slightly expensive at 63 times earnings and 5.6 times forward 12-month sales, respectively appear.

At the same time, there is no doubt that the stock could command a premium due to the company’s unprecedented underlying growth in U.S. banking.

In fact, the stock doesn’t look that expensive when you consider SoFi’s growth estimates. Consider the forward price-to-earnings-growth ratio for one year and the price-to-book value in comparison JPMorgan Chase And Wells Fargo.

SOFI-PEG Ratio (Forward 1 Year) data from YCharts.

Then consider that SoFi’s revenue is up 262% since its IPO in 2021, while JPMorgan Chase’s revenue is up just 40% and Wells Fargo’s is up 10% over the same period.

Are these growth estimates reliable?

SoFi CEO Anthony Noto expects the company to join the top 10 banks and says it’s only a matter of time.

The catalyst for growth is a true fusion of finance and technology. This means that even though its services include classic banking products, its use of technology makes it a completely different beast, and that is harder to evaluate using classic bank valuation metrics.

Although there are cheaper bank stocks out there, SoFi stock stands out because it still trades in the range of a traditional bank stock, even though the underlying business is growing much faster. And since the fintech platform is still much smaller, there is even more reason to expect incredible expansion opportunities. At this price, SoFi stock looks quite attractive.