Klarna Group (KLAR) Fair Value & Analysis
Financial Services · US · Market cap $7.1B
Klarna Group
KLAR · US
Fair value as of: Jul 19, 2026
From 1 valuation models · updated 22 days ago
Share price +4.6% over the past month.
Below-average quality, and screening another 78% overvalued on our models.
What matters now
- The price sits above even our optimistic bull case ($6.63). The favourable scenario is already priced in.
- Weak quality (34/100) and above fair value at the same time, the margin of safety is missing on both counts.
- The large gap to fair value rests on thin data (low evidence): fewer applicable models and a shorter history. Read it with extra caution.
- A fairly wide model range ($3.32 to $6.63) leaves room in how you read the outcome.
Price vs Fair Value (11 months)
White line = price, green steps = our fair value per fiscal year. As of Jul 19, 2026.
How to read this chart
11‑month range $12.27 – $45.82 · fair‑value band $3.32 – $6.63 · the $19.90 price screens above the $4.44 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). As of Jul 19, 2026.
Analysis
Klarna Group (KLAR) currently trades at $19.90, while our model-based Fair Value estimate is $4.44, implying the stock looks roughly 77.7% overvalued today. The Quality Score stands at 34/100 (below-average quality), in the Financial Services sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: low).
Over the trailing twelve months, Klarna Group generated revenue of $3.8B at a net margin of -5.2%. Revenue grew 44.4% year over year. It earns a return on equity of -7.0%. The balance sheet holds a net cash position of $2.4B. Fundamentals as of Jul 19, 2026
Our scenario range runs from $3.32 (bear case) to $6.63 (bull case); at $19.90, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 65% below its 52-week high and 65% above its 52-week low, currently below its 200-day average. For context, the median of 10 Financial Services peers we cover trades at -41% fair-value upside, at -78%, KLAR screens richer than that median.
Fair Value models
Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.
All 1 models by family
Key figures & financial health
More key figures
Figures from reported company fundamentals · as of Jul 19, 2026. TTM = trailing twelve months.
Quality Score breakdown
Of which business quality 42 · Market factors (momentum, volatility) 31
Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.
About the company
Klarna Group plc operates as a digital bank and flexible payments provider in the United Kingdom, the United States, Germany, Sweden, and internationally.
Full company description
Klarna Group plc operates as a digital bank and flexible payments provider in the United Kingdom, the United States, Germany, Sweden, and internationally. The company provides payment solutions, such as pay in full solution that settles purchases at time of the transaction; pay later solution that enables customers to purchase goods and services at the time of the transaction and pay the full amount at a later date; and fair financing that allows consumers to pay for their purchase over a long duration ranges from three to 48 months. It also offers advertising solutions that include sponsored search, affiliate programs, and brand advertisement; digital retail banking solutions, such as deposit and saving account, financial insights, and Klarna balance that allow consumer to hold monetary balance with Klarna balance solutions; and payment channels, including Klarna payment, Klarna app, Klarna card, and Klarna in-store. Additionally, the company provides membership programs, product search and price comparison, cashback offers and merchant deals, loyalty cards, wish lists, delivery tracking and returns, AI-enabled support, Klarna memberships, Klarna merchant portal, and on-site messaging solutions. The company was formerly known as Klarna UK II plc and changed its name to Klarna Group plc in December 2023. Klarna Group plc was founded in 2005 and is based in London, United Kingdom.
Company description, as reported by the company or data provider.
Revenue & earnings trend
FY2021 – FY2025 · reported fiscal years
Klarna Group reported revenue of $3.5B in FY2025 versus $1.6B in FY2021, a compound +21.3%/yr. Reported net income was −$294M in FY2025.
KLAR screens 78% overvalued. Compare with Visa Inc →
Recent news
External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.
- Klarna's integration with J.P. Morgan Payments goes live
- Klarna expands U.S. merchant reach through J.P. Morgan Payments partnership
- Klarna Goes Live With J.P. Morgan Payments, Opening Flexible Checkout to U.S. Merchants
Peer Group
Credit Services · 333 stocks
How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.
Valuation Multiples vs Credit Services median · lower = cheaper
Snowflake
Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.
VALUE 0: the price sits above our fair-value range.
Insider activity: 40/100
Values & ESG
Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.
ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.
Similar stocks
10 more Credit Services stocks, each showing price versus our Fair Value estimate (as of Jul 19, 2026).
| Stock | Price | Fair Value | vs Fair Value |
|---|---|---|---|
| Visa Inc V | $348.97 | $204.19 | -41% |
| Mastercard Incorporated MA | $537.70 | $221.87 | -59% |
| American Express Company AXP | $358.44 | $206.40 | -42% |
| Bajaj Finance Limited BAJFINANCE | ₹1,056 | ₹397.61 | -62% |
| Shriram Finance Limited SHRIRAMFIN | ₹1,024 | ₹553.83 | -46% |
| Cholamandalam Investment and Finance Company CHOLAFIN | ₹1,808 | ₹796.52 | -56% |
| Tata Capital Limited TATACAP | ₹360.60 | ₹229.85 | -36% |
| Power Finance Corporation PFC | ₹405.10 | ₹810.20 | +100% |
| Muthoot Finance Limited MUTHOOTFIN | ₹3,129 | ₹3,463 | +11% |
| Indian Railway Finance Corporation IRFC | ₹88.41 | ₹69.72 | -21% |
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Frequently asked questions
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How we calculate Fair Value
Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.
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