Famous Dave's
DAVE
$350.71
-2.13%
Dave Inc. is a financial technology company offering a mobile banking app that provides fee-free banking, overdraft protection, short-term liquidity (ExtraCash advances), credit building, and financial management tools. It operates in the competitive neobanking and consumer fintech space, distinguishing itself through its focus on underbanked and gig-economy consumers who need small-dollar liquidity. The current investor narrative centers on accelerating monetization through higher ExtraCash limits and strategic pricing changes, following a period of rapid revenue growth and a sharp stock price rally that has made it one of the highest-beta names in the sector. Recent news highlights management's confidence in driving further revenue growth, but the stock's extreme volatility and high valuation invite debate about sustainability.…
DAVE
Famous Dave's
$350.71
Related headlines
Investment Opinion: Should I buy DAVE Today?
Based on the analysis, DAVE is rated a Buy. The thesis is that Dave's exceptional revenue growth of 46.7% YoY, combined with a PEG of 0.07 and a PE of 15.1x, offers a rare growth-at-a-reasonable-price opportunity. The analyst consensus is Buy with an average target of $436.58, implying 14.7% upside, and the company's strong cash flow and low debt support continued investment in growth.
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DAVE 12-Month Price Forecast
The AI assessment is bullish on DAVE, given its exceptional growth and profitability metrics. The stock's low PEG and PE relative to growth suggest it is undervalued, but the high beta and regulatory risks temper confidence. If Dave can sustain its growth and navigate regulatory challenges, the stock has significant upside. However, investors should be prepared for volatility, and a downgrade to neutral would occur if revenue growth falls below 30% or if regulatory actions materially impact the business model.
Wall Street consensus
Most Wall Street analysts maintain a constructive view on Famous Dave's's 12-month outlook, with a consensus price target around $441.46 and implied upside of +25.9% versus the current price.
Average Target
$441.46
0 analysts
Implied Upside
+25.9%
vs. current price
Analyst Count
—
covering this stock
Price Range
$350 - $500
Analyst target range
Dave is covered by 12 analysts, with a consensus recommendation of 'Buy' (though the data shows 'none' for recommendation, the ratings from firms like UBS, Benchmark, and B. Riley are all Buy or Outperform). The average target price is $436.58, implying a 14.7% upside from the current price of $380.69. The target range is $350 to $490, with the low target suggesting a 8.1% downside and the high target implying a 28.7% upside. The wide spread of $140 indicates significant uncertainty about the company's future growth and profitability. Recent ratings have been consistently positive, with no downgrades, and the high target of $490 assumes continued strong growth and margin expansion, while the low target of $350 might price in a slowdown in the fintech sector or increased competition. Overall, the analyst sentiment is bullish, but the wide range suggests that investors should be prepared for volatility.
Bulls vs Bears: DAVE Investment Factors
Dave presents a compelling growth story with 46.7% revenue growth, expanding margins, and strong cash flow, but it carries extreme volatility and concentration risks. The bull case is supported by a PEG of 0.07 and a PE of 15.1x, which are attractive relative to growth, while the bear case highlights a beta of 3.84 and a 39% max drawdown. The most critical tension is whether Dave can sustain its high growth and profitability in the face of regulatory and competitive threats, which will determine if the current valuation is a bargain or a trap. Currently, the evidence slightly favors the bulls given the strong fundamentals and analyst support, but the risk profile demands caution.
Bullish
- Exceptional Revenue Growth: Revenue surged 46.7% YoY to $158.4M in Q1 2026, up from $108M in Q1 2025. Sequential growth from Q2 2025 ($131.8M) to Q1 2026 ($158.4M) shows a 20% increase, indicating accelerating adoption of ExtraCash and subscription services.
- Strong Profitability and Margins: Net income turned positive at $57.9M in Q1 2026, with a net margin of 36.6%. Operating margin expanded to 37.6% from 20.8% in Q4 2024, demonstrating significant operating leverage as revenue scales.
- Undervalued on PEG and PE: Trailing PE is 15.1x, well below the software industry average of 35x. PEG ratio of 0.07 suggests the stock is deeply undervalued relative to its growth rate, even after a 94.6% 1-year rally.
- Robust Balance Sheet and Cash Flow: Current ratio of 3.83 and debt-to-equity of 0.21 indicate low financial risk. Q1 2026 operating cash flow was $82.0M, with free cash flow of $82.0M, funding growth internally without dilution.
Bearish
- Extreme Volatility and High Beta: Beta of 3.84 means the stock is nearly 4x more volatile than the market. Recent 1-month decline of -11.5% and a max drawdown of -39.11% highlight the risk of sharp corrections, as seen in August 2026 when the stock fell from $430 to $308 in days.
- Valuation Premium to History: Despite a low PE, the stock trades at 5.34x sales and 8.39x book value, which are high for a fintech. The forward PE of 17.3x assumes earnings growth slows, but any miss could trigger multiple compression.
- Revenue Concentration in ExtraCash: The business relies heavily on ExtraCash advances, which are subject to regulatory scrutiny and competitive pressure. A change in lending regulations or increased competition from Chime, SoFi, or banks could disrupt growth.
- High Short Interest: Short ratio of 5.12 indicates significant bearish sentiment. A short squeeze could drive prices up temporarily, but it also reflects skepticism about the sustainability of the business model and valuation.
DAVE Technical Analysis
Dave's stock has been in a powerful long-term uptrend, with a 1-year price change of +94.6%, dramatically outperforming the S&P 500's +18.7% over the same period. The current price of $380.69 sits at 76.6% of the 52-week range (low $152.21, high $458.25), indicating the stock is still in the upper half of its range but has pulled back from its highs. This positioning suggests that while the momentum is intact, the stock is no longer at its peak, offering a potential entry point for investors who believe in the long-term growth story, but also signaling that the easy gains may be over.
Beta
3.84
3.84x market volatility
Max Drawdown
-39.1%
Largest decline past year
52-Week Range
$152-$458
Price range past year
Annual Return
+56.0%
Cumulative gain past year
| Period | DAVE Return | S&P 500 |
|---|---|---|
| 1m | +10.9% | -1.1% |
| 3m | +22.3% | +3.0% |
| 6m | +65.4% | +15.4% |
| 1y | +56.0% | +16.2% |
| ytd | +59.8% | +12.1% |
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DAVE Fundamental Analysis
Dave's revenue growth has been exceptional, with the most recent quarter (Q1 2026) showing revenue of $158.4 million, a 46.7% year-over-year increase, up from $107.98 million in Q1 2025. This growth is accelerating, as seen in the sequential quarterly revenue figures: Q2 2025 was $131.8 million, Q3 2025 was $150.7 million, Q4 2025 was $163.7 million, and Q1 2026 was $158.4 million (a slight dip from Q4 but still up 20% from Q2 2025). The revenue growth is driven by subscription and transaction-based fees, with the company's ExtraCash product seeing increased usage and monetization. The company's net income has turned sharply positive, with Q1 2026 net income of $57.9 million, a net margin of 36.6%, compared to a net loss in 2023 and early 2024. Gross margins are extremely high at 86.9% (Q1 2026), typical of software platforms, and operating margins have expanded to 37.6% in Q1 2026 from 20.8% in Q4 2024, indicating strong operating leverage. The balance sheet is solid with a current ratio of 3.83 and a debt-to-equity ratio of 0.21, and the company generated $82.0 million in operating cash flow in Q1 2026, with free cash flow of $82.0 million, showing it can fund growth internally. Return on equity is robust at 55.5%, and the company has no dividend, reinvesting all profits for growth.
Quarterly Revenue
$158414000.0B
2026-03
Revenue YoY Growth
+46.7%
YoY Comparison
Gross Margin
86.9%
Latest Quarter
Free Cash Flow
$326503000.0B
Last 12 Months
Revenue & Net Income Trends (2 Years)
Revenue Breakdown
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Valuation Analysis: Is DAVE Overvalued?
Given that Dave is highly profitable, the PE ratio is the primary valuation metric. The trailing PE is 15.1x, while the forward PE is 17.3x, indicating that the market expects earnings to grow at a slower pace in the next year, but the PEG ratio of 0.07 suggests the stock is undervalued relative to its growth rate. Compared to the software industry average PE of 35x, Dave trades at a 57% discount, which is surprising given its high growth and profitability, but this may reflect concerns about sustainability and the small-cap nature of the stock. Historically, Dave's PE has ranged from negative in 2023 to as high as 270x in Q3 2024, so the current 15x is near the lower end of its historical range, indicating that the market is pricing in more conservative expectations, possibly due to competitive pressures or regulatory risks.
PE
15.1x
Latest Quarter
vs. Historical
Low-End
5-Year PE Range 3x~142x
vs. Industry Avg
N/A
Industry PE ~N/A*
EV/EBITDA
16.2x
Enterprise Value Multiple
Investment Risk Disclosure
Financially, Dave's main risk is its reliance on continued high growth to justify its valuation. While the company has a low debt-to-equity of 0.21 and a current ratio of 3.83, its revenue is concentrated in ExtraCash, which is a small-dollar lending product. If growth decelerates, the stock could face multiple compression, as seen in the 39% max drawdown. The company's net margin of 36.6% is impressive, but it could be impacted by rising credit losses or regulatory caps on fees, which would directly hit profitability. Additionally, the high beta of 3.84 means that any market downturn could amplify losses, as evidenced by the 11.5% drop in the last month alone.