Adyen Is Still Expensive After $23 Billion Meltdown
- Payments company slumped after revenue growth disappointed
- Valuation is still much higher than sector average and PayPal
The Adyen NV headquarters in Amsterdam, Netherlands.
Photographer: Ksenia Kuleshova/BloombergThis article is for subscribers only.
Even after a record slump that wiped out €21 billion ($23 billion) in value, some investors think Adyen NV still looks too expensive, especially compared to rivals like PayPal Holdings Inc.
Shares in the European payments processing firm have fallen 46% since it reported a sales slowdown last week, including a record one-day drop. Despite that, Adyen trades at 33 times forward earnings, well above the 19 times average among payments companies in a Bloomberg Intelligence index. PayPal and Worldline SA both have valuations below 12 times.