eToro IPO: Can It Justify a $5 Billion Valuation Amid Mixed Comparables?

C12 Holding April 01, 2025

Global | April 2025 – With the eToro IPO filing now public, the spotlight turns to two critical questions: When will eToro go public, and what valuation will it command? Speculation is heating up around a target valuation of $5 billion, but with its financials now visible, the path forward may not be so simple.

Understanding eToro’s Real Revenue

eToro reported $12.6 billion in revenue for 2024—but that figure includes gross cryptoasset flows, which can distort financial comparisons. When accounting for crypto cost of revenue—which should be netted out—the adjusted realistic revenue drops significantly to $824 million, with a net profit of $192 million.

This accounting nuance has made it challenging to compare eToro with other listed brokers, but also highlights a strategy: eToro wants to position itself more like Robinhood than its European peers.

eToro’s Peer Comparables: US vs Europe

? Robinhood (NASDAQ: HOOD) is trading at eye-catching multiples:

• Revenue multiple: 12.6x

• Profit multiple: 26.3x

In contrast, European brokers like Plus500, XTB, and IG Group trade at significantly lower multiples, even though many are operating near 52-week highs.

If eToro is valued like Robinhood, its IPO could fetch between $5 and $10 billion. But if the market groups it with Plus500 and peers, its valuation would likely fall in the $2–3 billion range, possibly even less after applying a standard IPO discount.

The Geographic Dilemma

One key hurdle for eToro: less than 10% of its business comes from the U.S.—the exact opposite of Robinhood. While eToro aims to list on NASDAQ and attract U.S. investors, the operational profile, revenue composition, and brand equity lean more heavily toward a European identity.

This disconnect may make it difficult for investors to justify Robinhood-level multiples, regardless of eToro’s listing venue.

Market Sentiment and the Path Ahead

eToro’s ambition for a $5 billion valuation is not entirely out of reach, especially given the momentum in global fintech markets. However, its best valuation case hinges on successfully convincing investors that it deserves a U.S.-style growth multiple, despite European fundamentals.

"If eToro is seen as another Plus500, it likely prices at $2–2.5 billion. But if it captures Robinhood’s narrative—even partially—it could secure a $5 billion valuation," said one market analyst.

The outcome may depend on IPO timing, investor appetite, and how well eToro can position itself as a hybrid of crypto innovation and retail fintech success.