Upstart’s Bank Charter Could Boost EBITDA by 50% Amid Attractive Valuations

Upstart Holdings (UPST) is pursuing a national bank charter to establish "Upstart Bank," a strategic move that could fundamentally transform its financial profile. Recent analysis suggests this charter could potentially boost adjusted EBITDA by nearly 50% if origination fees are eliminated. Analysts are describing this development as a "SoFi Moment," predicting that regulatory approval will drive significant multiple expansion for the stock. Currently, Upstart trades at attractive valuation multiples, including a forward P/E of 13x and an EV/sales ratio of 3.6x. Obtaining the charter will provide the company with direct access to stable consumer deposits, reducing reliance on third-party partners and lowering the overall cost of capital. This shift reflects the maturity of Upstart's business model as it seeks to improve profit margins and gain full control over the credit lifecycle.