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Remitly Global (RELY) Joins Etsy Payments, Is The Stock Still 31% Undervalued?

Simply Wall St · 2d ago

Remitly Global (RELY) just announced a new role on Etsy Payments, becoming an additional payout option for international Etsy sellers across 15 countries and widening its reach in cross border digital transfers.

Despite the Etsy news, Remitly Global’s share price has been choppy in the short term, with a 7 day share price return down 14.98% and a 30 day move down 15.40%, even as the 90 day share price return of 9.28% and year to date gain of 68.31% point to momentum that is still positive overall.

Scan beyond Remitly Global and this Etsy deal to see which payment and fintech players are also building cross border momentum with the curated 21 cryptocurrency and blockchain stocks.

After a sharp pullback but a strong year to date run, Remitly Global now sits at a crossroads. Do the current fundamentals still justify buyers taking on this kind of volatility?

Most Popular Narrative: 31% Undervalued

Against a last close of $22.25, the most followed narrative centers on a fair value of $32.33 for Remitly Global. This frames the Etsy Payments tie up as one piece of a much wider product and earnings story that analysts are watching closely.

Significant expansion of the addressable market through Remitly Business and the Remitly One membership platform (including Wallet and Flex) directly taps into the ongoing global migration and the rise of cross-border economic activity. This is viewed as likely to support sustained, above-market revenue growth and increasing ARPU over the long term.

The strategic launch of stablecoin functionality and multicurrency wallets positions Remitly to participate in the accelerating adoption of digital financial services and rising global smartphone penetration. This is expected to drive higher customer acquisition, improve retention, and diversify revenue streams.

See why 37 investors see Remitly Global as 31% undervalued.

Based on this framework, the fair value is anchored at $32.33 using a 7.3% discount rate. This leaves a wide gap versus the $22.25 closing price that investors can compare against their own expectations for Remitly Global’s product roadmap, revenue mix and risk profile.

Result: Fair Value of $32.33 (UNDERVALUED)

Still, this Remitly Global narrative can break if rising competition forces lower fees or if new wallet and stablecoin products face tougher regulation.

Find out about the key risks to this Remitly Global narrative.

Next Steps

Mixed signals around Remitly Global can make any stance feel uncertain. Consider moving quickly, review the full picture of risks and potential upsides, and weigh the 4 key rewards and 2 important warning signs.

Looking for more Remitly Global investment ideas?

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.