BNPL Degen Returns: Why $KLAR will double from here
Klarna is undervalued at $12.50 with depressed P/S of 1.1 and 2027 EPS multiple of 15-25x despite 25-30% revenue growth and strong adjusted operating income. Fair Financing expansion (13% of GMV, growing 82% YoY) and US penetration (37% YoY growth, currently 36% of revenue) will drive margin expansion and profitability, supporting a $20-25 re-rating by Q4 2027 earnings.