Valuing Fintech Firms
- bs fintech
- Sep 23
- 2 min read
Challenges, Alternative Methods, and StoneCo Case Study
Fintechs are reshaping the financial landscape, from neobanks and lending platforms to payment innovators that move money faster, cheaper, and more accessibly than ever before. But while their growth is undeniable, their valuation is anything but straightforward.
At Bocconi Students Fintech Society, we set out to explore this puzzle in our project Valuing Fintech Firms: Challenges, Alternative Methods, and the StoneCo Case Study. We began with a deep dive into the global fintech market, unpacking its key verticals and business models to understand how value is created across such a diverse ecosystem.
From there, we examined traditional valuation tools like DCFs and multiples — methods widely used in finance but often ill-suited to young fintechs with negative cash flows, few comparables, and business models built on intangibles. We then looked at alternative approaches, from revenue multiples to sector-specific KPIs such as Total Payment Value, that offer more realistic benchmarks for the industry.
To bring theory into practice, we turned to StoneCo, one of Brazil’s leading fintech champions. Our analysis considered everything from its integrated ecosystem and subscription-based model to its challenges: regulatory hurdles, credit risk, and the valuation complexities of a business blending software, banking, and lending. Along the way, we uncovered how strategic moves like buybacks, funding shifts, and MSMB expansion are shaping its long-term value.
The result is a journey through one of the most complex puzzles in modern finance, where valuation is not just about numbers, but about capturing growth, innovation, and the power of technology.
M&A Analysis Slide Deck
Read the Slide Deck below ⬇️
Project Team
Project Leader: Braum Nauta
Analysts: Ádám Lugossy, Lucas Medina, Natalia Borisova, Nikolaus Lechleinter, and Noé Wierzba.
Association Board :
Guillaume Abaz (President), Michelangelo Mauro (Vice President), Catharina Gärtner (Head of M&A), Gleb Legotkin (Head of Data Analysis), Matteo Nesiti ( Head of Operations).
Comments