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If you’re wondering whether Figma at US$22.51 is a bargain or a value trap, you’ll want to understand what the current price actually represents.
The stock has been volatile recently, with the share price down about 4% in the past week, but up about 15.9% over the past month, while it is down about 40.1% year to date.
Recent coverage around Figma has focused on the stock’s sharp moves and how investors are reevaluating growth potential and risk following these moves. This context matters because emotion can move faster than the underlying fundamentals that ultimately underpin the evaluation.
Simply Wall St’s valuation framework currently gives Figma a Value score of 1 out of 6. Next, you’ll look at how different valuation methods frame stocks, before you look at a more holistic way to think about value at the end of the article that ties everything together.
Figma scores only 1/6 in our evaluation test. See what other red flags we found in the full assessment statement.
The discounted cash flow, or DCF, model estimates what a stock might be worth by estimating a company’s future cash flows and discounting them back into today’s dollars. This is essentially asking what is the present value of all future cash flows.
For Figma, the model used is a 2 stage free cash flow to equity approach based on cash flow projections. Latest trailing twelve month free cash flow is approximately $235.1 million. Analysts estimate and Simply Wall St extrapolation estimates that free cash flow will reach $1,177.4 million in 2035, with interim years such as 2026 and 2029 at $154.8 million and $500.7 million, respectively. All these figures are in $.
When these projected cash flows are discounted back, the model arrives at an estimated intrinsic value of approximately $27.25 per share. Compared to the current share price of $22.51, this means the stock is trading at about a 17.4% discount. On this DCF view, Figma appears undervalued.
Result: Underrated
Our discounted cash flow (DCF) analysis shows that Figma is undervalued by 17.4%. Track it in your watchlist or portfolio, or discover 47 more high-quality undervalued stocks.
FIG Discounted Cash Flow to June 2026
Visit the Valuation section of our company report for more information on how we arrived at this fair value for Figma.
Approach 2: Figma Price vs Sales
For companies where earnings are not yet the main focus, the P/S ratio is often more useful than P/E, because it compares what you are paying directly to the revenue the business is already generating.
However, growth expectations and risks still matter. Faster expected growth or lower perceived risk may support a higher P/S multiple, while slower expected growth or higher risk usually justifies a lower one.
Figma currently trades at a P/S of 10.24x. This is above the software industry average P/S of 3.79x and also above the peer group average of 6.33x. On those simple comparisons, the stock looks expensive relative to both its sector and closest competitors.
Simply Wall St’s fair ratio for Figma is 9.22x. This proprietary metric estimates what a reasonable P/S might be by taking into account factors such as earnings growth, profit margin, industry, market cap, and specific risk. Because it adjusts for these company level characteristics, it can be more informative than basic peer or industry comparisons.
Comparing the trailing ratio of 9.22x with the current P/S of 10.24x shows that Figma trades above this corresponding benchmark, so the stock appears overvalued on this measure.
Result: Highly Rated
NYSE:Fig P/S Ratio by June 2026
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Enhance your decision-making: Choose your Figma narrative
It was mentioned earlier that there is an even better way to understand valuation. Narratives on Simply Wall Street give you a clear story behind the numbers by linking your view of Figma’s business, its projected revenues, earnings and margins, to a calculated fair value that you can compare to the current price. They sit inside the community page, update automatically when fresh news or earnings arrive, and can vary widely. For example, a Figma narrative on the platform is currently based on a fair value of around US$18.79, while a more optimistic narrative is based on around US$92.12. This shows how two investors can look at the same company, make different assumptions and reach very different conclusions about whether the stock looks cheap or expensive when making their decisions.
However for Figma we’ll make it really easy for you with previews of two key Figma Narratives:
🐂 Figma Bull Case
Reasonable Price: US$65.25
The implied discount to this fair value versus the current US$22.51 price: approximately 65.5%.
Revenue growth estimate: 21.2%.
Analysts expect revenues to reach approximately US$1.7 billion and earnings to reach US$214.1 million by 2028, with profit margins improving from loss-making positions today toward the broader US software industry average.
To reach the US$65.25 target, the narrative assumes a high 236.2x P/E on those 2028 earnings, as well as ongoing share count growth of 7.0% per annum and an 8.5% discount rate.
Key risks include AI tools becoming more commoditized, slower-than-expected adoption of new products like Make and Buzz, and heavy underinvestment or dilution on earnings per share.
🐻 Figma Bear Case
Reasonable Price: US$18.79
The implied premium on this fair value versus the current US$22.51 price: approximately 19.8%.
Revenue growth estimate: 30.0%.
The narrative focuses on how Figma is deeply embedded in product teams and is used by approximately 95% of Fortune 500 companies, but the question is whether the stock price already reflects that status.
This highlights the strong adoption of products like Buzz, Slides, Sites and Make, while also showing that competitors remain strong in their respective fields in design, presentation and web building.
The bearish bias comes from concerns that growth may slow, AI features may catch up with rivals, and that the stock price may be more like that of a mature software company if execution or sentiment weakens.
If you want to see how your own expectations compare to these, it helps to read the full description, choose assumptions you agree with, and then decide whether the current US$22.51 share price seems close to a discount or premium to your goals and risk tolerance.
See what the community is saying about Figma
Do you think there is more to the Figma story? Visit our community to see what others are saying!
NYSE: Figure 1-Year Stock Price Chart
This article from Simply Wall St is of a general nature. We only provide commentary based on historical data and analyst forecasts using unbiased methodology and our articles are not intended to provide financial advice. It does not recommend buying or selling any stock, and does not take into account your objectives, or your financial situation. Our goal is to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not take into account the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any of the stocks mentioned.
The companies discussed in this article also include images.
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