Undervalued Post-IPO Opportunities: Why StubHub and Klarna Could Outperform in 2026

In the dynamic landscape of post-IPO investing, identifying companies that balance robust growth with undervalued fundamentals requires a nuanced understanding of both short-term volatility and long-term potential. StubHub and Klarna, two recent IPO standouts, exemplify this duality. While their stock prices have faced temporary headwinds, a closer examination of their financial performance, market positioning, and valuation multiples reveals compelling opportunities for value-driven growth investors.

StubHub: Navigating Regulatory Headwinds and Overvaluation Concerns

StubHub's third-quarter 2025 results underscore its resilience as a market leader in digital ticketing. Revenue rose 8% year-over-year to $468 million, with adjusted EBITDA surging 21% to $67 million. , . These metrics highlight StubHub's ability to capitalize on the growing demand for event-based entertainment, a sector projected to expand as live events rebound post-pandemic.

However, the company's stock , . Analysts have criticized StubHub's price-to-sales ratio of 4.5x, which exceeds industry and peer averages of 2x and 3x, respectively. Additionally, its 50x multiple on 2025 EBITDA appears inflated compared to peers like Live Nation and Airbnb.

Critics argue these multiples reflect overvaluation, but such concerns overlook StubHub's strategic advantages. The company holds a 30%-40% market share in the ticketing industry, bolstered by its global expansion and AI-driven personalization tools. Moreover, CEO has acknowledged that new federal regulations on transparent ticket pricing will cause a one-time revenue dip, a challenge already seen in states like New York. These regulatory adjustments, while painful in the short term, could ultimately strengthen consumer trust and market integrity.

. For investors with a multi-year horizon, this discrepancy represents a buying opportunity, particularly as the company repays $750 million of debt using IPO proceeds, enhancing its financial flexibility.

Klarna: A BNPL Sector Leader with Structural Growth

Klarna's second-quarter 2025 performance reinforces its dominance in the Buy Now, Pay Later () sector. , with 111 million active consumers and 790,000 merchant partners. Its delinquency rate on Pay Later loans fell , , signaling strong risk management in a sector often criticized for lax credit standards.

With , Klarna trades in line with the BNPL sector average (e.g., Sezzle at 16x). Yet its valuation appears undervalued when considering its market position: in BNPL, . Strategic partnerships, such as its integration with Apple Pay, further solidify its competitive edge.

Klarna's and highlight its efficiency and scalability. For value-driven investors, the company's ability to balance growth with financial discipline-despite macroeconomic headwinds-makes it a compelling long-term play.

### Valuation Discrepancies and Strategic Entry Points Both companies face short-term challenges that distort their valuations. StubHub's stock dip post-IPO was driven by non-recurring expenses and regulatory adjustments, not underlying business weakness. Similarly, Klarna's BNPL peers face scrutiny over consumer debt risks, yet and position it to outperform.

and suggest both are trading below their intrinsic value relative to growth trajectories. For StubHub, the key is patience: regulatory normalization and debt repayment could unlock value in 2026. Klarna, meanwhile, benefits from the BNPL sector's structural growth, with its market share poised to expand as e-commerce adoption accelerates.

Conclusion: A Case for Long-Term Conviction

StubHub and Klarna represent two sides of the same coin: companies with strong fundamentals and market leadership, temporarily discounted by short-term noise. For value-driven growth investors, these are not speculative bets but calculated opportunities to capitalize on mispriced assets. As StubHub navigates regulatory hurdles and Klarna scales its BNPL ecosystem, both are well-positioned to deliver outsized returns in 2026 and beyond.