Is It Time To Reassess Figma (FIG) After The Recent Share Price Slump?

Simply Wall St

Fri, February 13, 2026 at 11:15 AM GMT+9 5 min read

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FIG

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If you are wondering whether Figma shares are starting to look attractively priced or still carry a lot of expectation, this article will walk through the key numbers that matter for you as a shareholder or potential buyer.

The stock last closed at US$22.02, with a 0.8% decline over 7 days, a 34.4% decline over 30 days, and a 41.5% decline year to date, which may signal that the market is reassessing both its growth potential and risk profile.

Recent coverage has focused on Figma's position in collaborative design software and how the market is reacting to changing sentiment around high growth software names, which helps frame these price moves. This mix of enthusiasm for its product and caution around the broader sector is an important backdrop before weighing up what a fair price might be.

On Simply Wall St's valuation checks, Figma currently scores 0 out of 6. We will look at what different valuation approaches say about the stock, then finish by showing you a more complete way to think about value that goes beyond a single score.

Figma scores just 0/6 on our valuation checks. See what other red flags we found in the full valuation breakdown.

Approach 1: Figma Discounted Cash Flow (DCF) Analysis

A Discounted Cash Flow model estimates what a business might be worth today by projecting its future cash flows and discounting them back to a present value using a required rate of return.

For Figma, the model used is a 2 stage Free Cash Flow to Equity approach, based on projected free cash flows in $ and then extrapolated beyond the explicit analyst forecast period. The latest twelve month free cash flow is $283.886 million. Analysts and extrapolations point to free cash flow reaching $758.532 million in 2035, with interim projections such as $196.771 million in 2026 and $428.600 million in 2029, all adjusted back to today in the model.

Putting these projections together, the DCF output indicates an estimated intrinsic value of about US$20.19 per share. Compared with the recent share price of US$22.02, Figma screens as around 9.0% overvalued on this model, which is close to the margin where valuation calls start to blur.

Result: ABOUT RIGHT

Figma is fairly valued according to our Discounted Cash Flow (DCF), but this can change at a moment’s notice. Track the value in your watchlist or portfolio and be alerted on when to act.

FIG Discounted Cash Flow as at Feb 2026

Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Figma.

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Approach 2: Figma Price vs Sales

For a company like Figma that is focused on scaling its business, the P/S ratio is a useful way to think about value because it compares what you pay for each dollar of current revenue, regardless of current profitability.

In general, higher growth expectations and lower perceived risk tend to justify a higher P/S multiple, while slower expected growth or higher risk usually point to a lower, more conservative range. So the question is what feels “normal” for Figma given its profile and sector.

Figma currently trades on a P/S of 11.26x. That sits above the Software industry average of 3.67x and also above the peer average of 6.45x, which on simple comparisons suggests a richer valuation.

Simply Wall St’s Fair Ratio for Figma is 10.62x. This is a proprietary estimate of what the P/S might be given factors such as earnings growth, profit margins, industry, market cap and key risks. Because it blends these into a single figure, it can be more tailored than a basic peer or industry comparison.

Set against the current 11.26x P/S, the Fair Ratio points to Figma trading somewhat above that level.

Result: OVERVALUED

NYSE:FIG P/S Ratio as at Feb 2026

P/S ratios tell one story, but what if the real opportunity lies elsewhere? Start investing in legacies, not executives. Discover our 23 top founder-led companies.

Upgrade Your Decision Making: Choose your Figma Narrative

Earlier we mentioned that there is an even better way to understand valuation. Let us introduce you to Narratives, which are simply your story about a company mapped directly into numbers like your assumed fair value, future revenue, earnings and margins, then compared with the current price to guide whether you see it as attractive or not. All of this sits within an easy tool on Simply Wall St’s Community page that updates automatically when fresh information such as news or earnings arrives. For Figma, that could mean one investor building a bullish Narrative with a fair value of about US$92.12 based on higher growth and a P/E of 311.2x in 2029. Another might build a cautious Narrative with a fair value of US$52.00 and a P/E of 181.7x in 2028, and a third might use a consensus style Narrative around US$65.25 and a P/E of 236.2x. Each links their view of the business to a specific forecast and fair value that they can track against the live share price.

Do you think there’s more to the story for Figma? Head over to our Community to see what others are saying!

NYSE:FIG 1-Year Stock Price Chart

_ 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._

Companies discussed in this article include FIG.

Have feedback on this article? Concerned about the content? Get in touch with us directly._ Alternatively, email editorial-team@simplywallst.com_

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