Robinhood IPO Price Prediction—Not Worth the Buy Amid Rich Valuation

Robinhood and eToro are both investment platforms. However, they have unique features that differentiate them. eToro is also going public
through a SPAC merger with The FinTech Acquisition Corp. V (FTCV). The merger is expected to be completed in the third quarter of 2021. While the growth of both platforms is tremendous, Robinhood is growing faster than eToro. Robinhood is also trading at a higher multiple.

Based on the expected market capitalizations of $10.4 billion and $35 billion for eToro and Robinhood, respectively, and 2020 revenues of $650 million and $959 million, respectively, they are trading at price-to-sales multiples of 16x and 36x, respectively. However, at 36.0x, Robinhood’s valuation is rich given the uncertainty regarding its future growth.

View more information: https://marketrealist.com/p/robinhood-ipo-price-prediction/

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