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    FirstCash (FCFS): Assessing Valuation After a 58% Year-to-Date Rally

    Simply Wall St·12/17/2025 08:26:07
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    FirstCash Holdings (FCFS) has quietly put up strong numbers, with the stock gaining about 58% this year and nearly doubling over the past 3 years, outpacing many financial peers.

    See our latest analysis for FirstCash Holdings.

    With the share price now at $162.55, FirstCash’s strong year to date share price return of 58.45% and robust 3 year total shareholder return of 94.83% suggest that momentum is still very much on its side as investors reassess its growth profile and risk.

    If FirstCash’s steady climb has you thinking about what else could be quietly compounding in the background, now is a good time to explore fast growing stocks with high insider ownership.

    But with earnings still growing at a double-digit rate and the share price already near analyst targets, the key question now is whether FirstCash remains undervalued or if the market is already pricing in its future growth.

    Price-to-Earnings of 23.2x: Is it justified?

    On a headline basis, FirstCash trades on a 23.2x price to earnings multiple, which looks rich given the last close of $162.55 and its sector backdrop.

    The price to earnings ratio compares the company’s share price with its per share earnings. It provides a quick read on how much investors pay for each dollar of profit in a mature, cash generative consumer finance business like FirstCash.

    Compared to its own earnings profile, the market appears to be paying a premium, with the current 23.2x multiple sitting well above the estimated fair price to earnings ratio of 15.4x. Our analysis suggests the valuation could gravitate toward that level if expectations normalise.

    The contrast is even starker when set against the broader US Consumer Finance industry, where peers trade around 9.3x earnings. This underlines how assertively the market is pricing FirstCash’s profit growth and quality.

    Explore the SWS fair ratio for FirstCash Holdings

    Result: Price-to-Earnings of 23.2x (OVERVALUED)

    However, risks remain, including a re rating if earnings growth slows from its current double digit pace or if regulatory scrutiny tightens around pawn operations.

    Find out about the key risks to this FirstCash Holdings narrative.

    Another View: Our DCF Fair Value Check

    While the earnings multiple points to an expensive stock, our DCF model goes further, suggesting FirstCash trades well above its fair value, with an internal fair value estimate of about $73.65 versus the current $162.55. That implies substantial downside if growth disappoints.

    Look into how the SWS DCF model arrives at its fair value.

    FCFS Discounted Cash Flow as at Dec 2025
    FCFS Discounted Cash Flow as at Dec 2025

    Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out FirstCash Holdings for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 911 undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

    Build Your Own FirstCash Holdings Narrative

    If you see the story differently or want to dig into the numbers yourself, you can build a custom view in just minutes: Do it your way.

    A great starting point for your FirstCash Holdings research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.

    Looking for your next smart opportunity?

    Before you move on, you can scan hand picked stock ideas that match different strategies, so you are never short on options.

    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.