GCash IPO sustaining profitability at lower starting price, says analyst

Mynt’s initial public offering at a final price of P6.60 per share offers investors a more attractive starting point, with its sustained profitability serving as a critical foundation for assessing long-term value, according to investment analyst Eric Jurado.

Jurado’s analysis applies core investment principles championed by the late Charlie Munger, Warren Buffett’s longtime partner and former Berkshire Hathaway vice chairman, who stressed business quality, profitability, and enduring earning power over short-term market noise.

For prospective investors in GCash, the approach shifts focus away from immediate post-listing price action toward Mynt's ability to consistently compound shareholder capital.

Company prospectus figures highlight Mynt's robust return on equity (ROE), registering 25.8 percent in 2023, 32.8 percent in 2024, 32.1 percent in 2025, and 26.8 percent for the 12-month period ending in June 2026.

This translates to an average ROE of roughly 29.4 percent across the tracked periods.

ROE measures how efficiently a company utilizes shareholders' equity to generate net income. Financial experts view Mynt's performance as notable for maintaining returns above 25 percent consistently, avoiding reliance on a single isolated spike.

The revised P6.60 final offer price represents a discount from the previously disclosed maximum price of P10, though analysts note a lower entry price does not automatically guarantee undervaluation.

Under the Munger framework, price matters, but long-term success hinges heavily on the underlying earning power of the enterprise.

Mynt enters the public market backed by a massive user base, with GCash reporting 41.5 million monthly active users as of June 2026.

The platform has successfully expanded from basic payments into savings, credit, loans, insurance, and investments, creating multiple revenue streams within its ecosystem.

However, analysts stressed that user acquisition alone will not sustain long-term valuation. Mynt must continue converting its expansive reach into recurring revenues and profits while actively managing competitive, credit, and regulatory risks.

Ultimately, Jurado noted, the central question for shareholders is whether Mynt can maintain its profitability, grow earnings, and prudently reinvest capital to compound intrinsic business value over time.