In 2022, blue chip stock Adobe agreed to buy Figma for $20 billion, but the acquisition was called off as regulators in the U.K. expressed antitrust concerns. Shortly after the deal fell through in late 2023, Figma reset its internal valuation to $10 billion.

As a business, Figma appears to have a bright future ahead of it, but after tripling on its IPO day, the stock now has a market cap of roughly $60 billion, giving it a price-to-sales ratio (P/S) of around 70. That's a sky-high valuation for even the brightest of IPOs.

Figma's IPO was a huge success, but the current valuation is extremely high and prices are in near-perfect execution. Click here to find out why FIG is a Hold.