Remember when Sezzle Inc. (SEZL) was the hottest thing in buy now, pay later? Those days feel distant now. The company has shed roughly 60% of its value in less than six months, a collapse that's finally bringing its valuation back down to earth.

Here's the interesting part: that crash might actually be creating an opportunity. Sezzle went public on Australia's ASX back in 2019 at A$1.22 (about $0.84 per share), then proceeded to deliver an absolutely bonkers 22,131% rally through mid-2025. Yes, you read that right. But competing in the increasingly crowded U.S. online credit market against heavyweights like Affirm Holdings Inc. (AFRM) and Klarna Group Inc. (KLAR) has proven challenging.

The Value Proposition Emerges

Sezzle's Value score has jumped notably, climbing from 25.76 to 34.61 in just one week as selling pressure continues. Value scores measure how a company's fundamentals—earnings, assets, growth performance—stack up against its market valuation, then rank it as a percentile relative to peers.

The numbers tell a compelling story. Following the pullback, Sezzle trades at 16 times forward earnings. That's remarkably cheap, especially when you look at the competition. Affirm currently trades at 74.63 times forward earnings, while Klarna sits at 52.36 times forward earnings. That's a massive valuation gap.

Wall Street analysts haven't given up on the name either. They maintain a bullish outlook with an average consensus price target of $174.80, representing potential upside of 143% from current levels. That kind of implied return certainly catches your attention.

There's a catch, of course. Despite the improved value metrics, Sezzle continues struggling in both Momentum and Value rankings overall, though it does show a favorable short-term price trend. The company clearly faces headwinds, but the question is whether the market has overshot on the downside.

For investors willing to bet on a turnaround in the BNPL space, Sezzle's current valuation offers an interesting risk-reward proposition compared to its pricier rivals.