Is Virtu Financial (VIRT) Undervalued After Expanding POSIT Block Trading To Saudi Stocks?

Virtu Financial (VIRT) has extended its POSIT block trading indications network to cover 245 of the most liquid stocks on the Saudi Exchange, providing institutions with additional ways to source and aggregate large equity orders.

Virtu Financial’s recent Saudi Exchange expansion comes after a sharp run, with the share price up 77.33% year to date and the 1-year total shareholder return at 77.71%. This is despite a 12.14% decline in the 90-day share price return and a cooling in short-term momentum.

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Bulls see Virtu Financial’s Saudi push and recent share price surge as evidence the business deserves a richer multiple. Bears point to softer 90 day returns and revenue pressure. Which side does the current valuation support next?

Most Popular Narrative: 17% Undervalued

Against a last close of $57.81, the most followed Virtu Financial narrative pegs fair value at $69.57 using a 10.04% discount rate. That implies a valuation gap that rests on how much weight you put on future earnings power versus pressured revenue expectations.

Virtu's investments in trading technology, cross-asset platform integration, and digital asset capabilities (including crypto, stablecoins, and tokenized assets) position it to capture new wallet share, providing earnings growth and improved revenue diversification. Expansion of client-facing execution services, especially through cross-selling initiatives and new multi-asset products (e.g., Triton EMS), as well as continued penetration of fixed income, FX, and options, reduces revenue cyclicality and supports consistent top-line and margin growth.

See why 5 investors see Virtu Financial as 17% undervalued.

Result: Fair Value of $69.57 (UNDERVALUED)

Still, Virtu Financial faces real pressure if competition from tech driven traders squeezes spreads or if new crypto and tokenization rules reshape where volumes actually trade.

Find out about the key risks to this Virtu Financial narrative.

Next Steps

If sentiment around Virtu Financial feels split, use that as a prompt to move quickly and test the bullish and bearish claims against the data yourself. Afterward, weigh up the 6 key rewards and 1 important warning sign.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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