Should You Buy SoFi Technologies (SOFI) Stock Right Now?

Wondering whether you should invest in shares of SoFi Technologies (NASDAQ: SOFI) -- and whether this is a good time to do so? You're probably not alone. Given that the stock has more than tripled in value over the past year -- up 233% as of Oct. 2 -- it has drawn investor attention.

SoFi Technologies is a "fintech" company -- one involved in finance and technology. Specifically, it's a bank that aims to become a one-stop shop for consumers, permitting them to manage a wide range of financial matters from its multifaceted app. (My colleague Jennifer Sabil has predicted that it will become one of the largest U.S. banks within a decade.)

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In its own words, "Over 10.9 million members trust SoFi to borrow, save, spend, invest, and protect their money – all in one app – and get access to financial planners, exclusive experiences, and a thriving community." But wait -- there's more! "Fintechs, financial institutions, and brands use SoFi's technology platform Galileo to build and manage innovative financial solutions across 158.4 million global accounts."

The company is growing well. Its second-quarter report featured revenue up 44% year over year and member growth up 34% -- to 11.7 million. It has reached a recent market capitalization of $30 billion, and it's not hard to imagine it with a fatter value a decade from now.

If you think this is a great company and a great stock, you do need to make sure that it's trading at a reasonable valuation before jumping in. (Overpaying significantly for a great stock can result in lower gains or even losses.) A quick look reveals a recent price-to-sales ratio of 10 and a recent forward-looking price-to-earnings (P/E) ratio of 47. Both numbers are steep, so you might want to just add this promising stock to your watch list. Alternatively, perhaps build a position in it incrementally -- or just jump in, acknowledging the risk and aiming to hang on for many years.

Selena Maranjian has positions in SoFi Technologies. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.