The average target price of ETOR is 79 and suggests 40% upside potential. Usually, this means a BUY recommendation among investment firms, or a recommendation to increase one's position in this instrument in the next 12 months. The most optimistic analyst has a target price of 85.0. This translates into 51% upside potential in the best case. On the other hand, the most pessimistic analyst has a target price of 65.0. This suggests 16% upside potential. Even the most pessimistic analyst believes there will be stock growth. 

eToro Group Ltd. is an Israeli-based financial technology company founded in 2007. It operates a multi-asset investment platform that combines social networking features with trading capabilities, allowing users to trade stocks, cryptocurrencies, commodities, and more. As of December 31, 2024, eToro had approximately 3.5 million funded accounts across 75 countries.

Israel

eToro Group Ltd.

Financial Services

The company does not pay dividends at all, or it pays them sporadically. There have only been a few years with dividend payments in the past ten years. 

ETOR reported revenue of USD 12 624mn in the last 12 months, up 226% from FY23. The dynamics of cash flow, as measure by free cash flow (FCF), were rather similar. EPS grew 1 131% from FY23 to USD 9.85.

The stock has been falling steadily in the past six months, losing 0% in total. The stock has lagged its global peers from the same sector and industry (as shown above), underperforming then by 8ppts in total. This is largely true for peers from the same country and sector. With respect to the stock's valuation against its peers, its overall price performance is slightly negative.

The ratio of return on invested capital (RoIC) to the weighted average cost of capital (WACC) has been 1.6 in the past several years. This ratio implies a good shareholder value creation. 

The institutional, legal, and compliance risks associated with the company's country are minimal. In combination with stringent business standards, shareholder rights are very highly protected.

ETOR has average trading liquidity. The average private investor can sell his common position in the stock immediately. Liquidity is usually stable and remains extremely favourable on the days with the lowest activity. However, please consider that under highly turbulent market conditions, the trading volume tends to decrease significantly. 

No other major risks have been identified.

The risk of default is moderate. We note resilient historical revenue growth, low margin volatility, strong debt servicing capacity, solid cash flow generation, and an favourable capital structure, among the positive credit factors. Among the negative credit factors, we point to bleak profitability, negligible return on capital, and inadequate interest coverage.

In highly turbulent market conditions, ETOR is highly volatile. In other words, the stock will fall substantially more than the index in times of extreme market volatility or shocking company news. Standalone, the worst-day losses (less than 1% of the time) will likely be significant. 

In normal market circumstances, ETOR is exceptionally volatile. Put differently, without outstanding market volatility or shocking company news, the stock's price will change quite unpredictably. The stock's losses on its worst days (less than 1-5% of the time) will range from significant to immense. 

Based on key historical and expected multiples, the stock is greatly overvalued relative to its peers. In particular, the stock is overpriced on P/E, 'expensive' on EV/EBITDA, overvalued on P/FCF. 

Log in

eToro Group Ltd.

$ 57.63

3

eToro Group Ltd.

$ 57.63

3

Risk factor

Profitability factor

Risk / Profitability

Risk factor

Profitability factor

$ 57.63

About

About

About

About