Klarna Group plc

KLARdata completeness 88%3 fiscal years on file

Data notes: no data for concept 'totalDebt'

The thesis, from the filings

Klarna Group plc earns about -7% on equity, below its ~9% cost of capital, but has diluted owners by 4% over 3 years — no moat visible in the numbers. The estimate methods put fair value between $37.62 and $39.96 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2023FY 2024FY 2025
Revenue$2.28B1$2.81B1$3.51B1
Net income−$244M2$21M2−$273M2
Operating cash flow$808M3$587M3−$1.03B3
Capital expenditure$1M4$1M4$3M4
Free cash flow (derived)$807M3$586M3−$1.04B3
Total debt
Cash & equivalents$2.39B5$3.24B5$3.8B5
Diluted shares362.1M364.0M377.5M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$66.41
your share of equity
Profit it earned you last year
−$7.23
Free cash flow it threw off
−$27.42
Debt you’d be carrying

10 shares is a claim on $66.41 of net worth that earned you −$7.23 and generated −$27.42 of cash last year.

iii. Is this a good business?
Moat signal · return on equity
-7% avg · 3y
FY23 -11%FY24 1%FY25 -11%

It earned about -7% on equity against a ~9% cost of capital — below the cost of funding. The numbers show no moat.

seeing a moat in the numbers →
Management signal · capital allocation
+4% shares · 3y

Share count is up 4% over 3 years — owners have been diluted. Worth asking what they got for it.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0

The 2 estimate methods that apply put fair value between $37.62 and $39.96 a share. They rest on different assumptions, so where they diverge is the story.

DCF · Growth Exit 10Y
$39.96
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears10
  • fcfGrowth5.0%
  • fcfBase$586M
DCF · Growth Exit 5Y
$37.62
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears5
  • fcfGrowth5.0%
  • fcfBase$586M
Earnings Power Value
not applicable
normalized (5y-median) earnings non-positive — EPV undefined
Graham Number
not applicable
diluted EPS missing or non-positive — Graham Number undefined

Different models answer different questions — which to trust when →

v. The price question — last, on purpose
Is today’s price fair?
See live price ↗
Type a price. The ledger answers.
Or set your own belief
FCF growth, next 5 years5.0%
Discount rate (WACC)8.93%
Terminal growth2.5%
At your growth, a share is worth $37.62
The three cases
Bear0.0%$32.25
Base5.0%$37.62
Bull10.0%$44.04

Bear/base/bull growth = 0% / filed history / history + 5pp. Type a price to see the return each case implies.

Default growth 5.0%= this company’s own filed history (median-to-median FCF CAGR, clamped 0–20%). Your adjustments are recorded anonymously. They become the “what do owners actually believe” dataset.

Sources — the receipts
  1. 20-F · period ending 2023-12-31 · accession 0002003292-26-000007 (Revenue)
  2. 20-F · period ending 2023-12-31 · accession 0002003292-26-000007 (ProfitLoss)
  3. 20-F · period ending 2023-12-31 · accession 0002003292-26-000007 (CashFlowsFromUsedInOperatingActivities)
  4. 20-F · period ending 2023-12-31 · accession 0002003292-26-000007 (PurchaseOfPropertyPlantAndEquipmentClassifiedAsInvestingActivities)
  5. 20-F · period ending 2023-12-31 · accession 0002003292-26-000007 (CashAndCashEquivalents)