Stripe Fickle Valuation

What’s happening with Stripe Valuation?

Different sources are quoting different levels. This is due to the fact that Stripe had reached a very high valuation with a lot of investors involved, including large institutions that are now marking down their positions. But how low is really the market?

The San Francisco-based company had reached ridiculous valuation before the 2022 great reset, with shares changing hands in the secondary market at at a 62% premium to the financing round H from July 21, when secondary tourists were piling into private deals without the slightest idea of how to value a business.

Then came the news of Fidelity marking down the position on its books (FID Jun/22 in the chart) to ~$64B

Then the company announced an internal reduction of the valuation in connection with the filing of a 409A form, an IRS-regulated process that measures the value of common stock against public market comps to help set a fair market value. The company allegedly took off 28% their last round H, bringing the valuation to ~$74B.

Asset Manager T Rowe Price also joined the race in marking down the stock, to a valuation of ~$54.5B (TRP Sep/22 in the chart above).

We think Stripe is currently offered at ~$85B in the secondary market (LSVC Sep/22 above).