Pagaya Technologies has entered a new forward flow agreement covering up to US$700 million of auto loans, a deal that could support higher volumes and shape how investors view the timing and durability of future profits. The agreement has sharpened interest in the business, though the stock still trades at a discount on an earnings framework, at around 13.9x earnings versus a wider Software industry average of about 29.5x and a peer group on roughly 41.6x. Over the past 5 years the stock has fallen 82.8%, and community views on Pagaya split sharply, with one camp seeing a discounted AI infrastructure play and the other highlighting valuation and cycle risks. One bull case puts Pagaya Technologies at 68% undervalued, while a bear case puts it at 70% overvalued. The key question for shareholders is whether the risks around Pagaya's funding model and loan exposure justify the lower P/E or whether the gap is too wide.
Pagaya Technologies Ltd.Pagaya signed a $700M forward flow agreement covering auto loans, supporting higher volumes and durable funding.
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