Complete WEX Stock Valuation Analysis
Comprehensive intrinsic value analysis using 6 different methodologies
WEX DCF Analysis
WEX (WEX Inc.) discounted cash flow analysis with multiple scenarios, growth assumptions, and terminal value calculations
Financial Projections
| Metrics | 2022 (Historical) | 2023 (Historical) | 2024 (Historical) | 2025 (Projected) | 2026 (Projected) | 2027 (Projected) | 2028 (Projected) | 2029 (Projected) |
|---|---|---|---|---|---|---|---|---|
| Revenue | $2.4B | $2.5B | $2.6B | $2.9B | $3.2B | $3.5B | $3.8B | $4.1B |
| Revenue Growth % | - | 8.4% | 3.1% | 11.0% | 9.9% | 8.9% | 8.1% | 7.2% |
| EBIT | $469.8M | $647.1M | $686.3M | $695.5M | $767.9M | $840.1M | $911.5M | $981.6M |
| EBIT Margin % | 20.0% | 25.4% | 26.1% | 23.8% | 23.9% | 24.0% | 24.1% | 24.2% |
| Tax Rate % | 35.7% | 27.7% | 25.9% | 29.5% | 29.1% | 28.6% | 28.2% | 27.7% |
| NOPAT | $302.0M | $467.8M | $508.6M | $490.2M | $544.7M | $599.7M | $654.8M | $709.6M |
| NOPAT Margin % | 12.8% | 18.4% | 19.4% | 16.8% | 17.0% | 17.2% | 17.3% | 17.5% |
| Capex | $116.2M | $143.6M | $147.3M | $151.7M | $158.5M | $164.0M | $168.3M | $171.5M |
| Capex / Revenue % | 4.9% | 5.6% | 5.6% | 5.2% | 4.9% | 4.7% | 4.5% | 4.2% |
| Depreciation | $263.9M | $276.2M | $321.3M | $333.6M | $366.7M | $399.6M | $431.7M | $463.0M |
| D&A / Revenue % | 11.2% | 10.8% | 12.2% | 11.4% | 11.4% | 11.4% | 11.4% | 11.4% |
| Change in NWC | $-376.7M | $-107.0M | $-227.9M | $-39.6M | $-34.8M | $-30.3M | $-26.2M | $-22.5M |
| NWC Change / Revenue % | -16.0% | -4.2% | -8.7% | -1.4% | -1.1% | -0.9% | -0.7% | -0.6% |
| Unlevered FCF | $826.4M | $707.4M | $910.5M | $711.7M | $787.8M | $865.6M | $944.4M | $1.0B |
| UFCF % Chg. | - | -14.4% | 28.7% | -21.8% | 10.7% | 9.9% | 9.1% | 8.4% |
| FCF / Revenue % | 35.2% | 27.8% | 34.6% | 24.4% | 24.6% | 24.8% | 25.0% | 25.3% |
| Discount Factor | - | - | - | 0.933 | 0.871 | 0.813 | 0.758 | 0.708 |
| Present Value of FCF | - | - | - | $664.1M | $686.0M | $703.4M | $716.2M | $724.3M |
| Sum of PV of UFCF | - | - | - | $664.1M | $1.4B | $2.1B | $2.8B | $3.5B |
WACC Calculation
Weighted Average Cost of Capital used for discounting cash flows.
| WACC Calculation | Value |
|---|---|
| Cost of Debt | 6.0% |
| Tax Rate | 29.5% |
| After Tax Cost of Debt | 4.2% |
| Risk Free Rate | 4.46% |
| Market Risk Premium | 4.3% |
| Beta | 1.26 |
| Cost of Equity | 9.9% |
| Total Debt | $4.4B |
| Market Cap | $4.7B |
| Total Capital | $9.1B |
| Debt Weighting | 48.3% |
| Equity Weighting | 51.7% |
| WACC | 7.2% |
Terminal Value
Choose between perpetuity growth or exit multiple methods.
| Terminal Value Calculation | Value |
|---|---|
| Terminal Growth Rate | 2.5% |
| Final Year FCF | $1.0B |
| Terminal Value | $22.5B |
| PV of Terminal Value | $15.9B |
| Cumulative PV of UFCF | $3.5B |
| Net Debt | $3.8B |
| Equity Value | $15.6B |
| Shares Outstanding | 41.3M |
| Implied Share Price | $379 |
| Current Share Price | $137 |
| Implied Upside/(Downside) | +176.8% |
Valuation Summary
$378.79
Implied Price
$136.85
Current Price
+176.8%
Upside/Downside
7.2%
WACC
WEX Peer Valuation Analysis
Relative valuation based on comparable company trading multiples
Peer Valuation Analysis
Fair Value Range Analysis
Based on median multiples from 11 peer companies in Technology
P/E Ratio
$245.43
+79.3%
Peer Median: 30.7x
EV/EBITDA
$493.19
+260.4%
Peer Median: 17.2x
P/S Ratio
$241.94
+76.8%
Peer Median: 3.2x
Interpretation: Each multiple provides a different perspective on fair value. Consider which multiple is most relevant for WEX's business model and current situation.
Multiple Comparison
| Multiple | WEX Current | Peer Median | Peer Average | Premium/Discount | Assessment |
|---|---|---|---|---|---|
| P/E Ratio | 17.1x | 30.7x | 32.5x | -44.2% | Undervalued |
| EV/EBITDA | 8.6x | 17.2x | 16.3x | -49.9% | Undervalued |
| P/S Ratio | 1.8x | 3.2x | 5.2x | -43.4% | Undervalued |
Peer Companies
Click any company to view their valuation
| Company | Market Cap | P/E Ratio | EV/EBITDA | P/S Ratio |
|---|---|---|---|---|
| $18.48B | 12.0x | 7.2x | 1.8x | |
| $17.67B | 0.0x | 76.5x | 5.9x | |
| $13.13B | 30.7x | 17.2x | 5.7x | |
| $6.45B | 39.7x | 24.5x | 1.9x | |
| $4.67B | 15.7x | 7.3x | 1.2x | |
| $4.69B | 17.1x | 8.6x | 1.8x | |
| $4.77B | 96.8x | 55.6x | 5.0x | |
| $4.30B | 0.0x | 186.7x | 3.2x | |
| $3.84B | 36.9x | 32.5x | 11.7x | |
| $3.12B | 3.5x | 4.9x | 0.8x | |
| $709.23B | 40.5x | 27.8x | 18.9x |
WEX Graham Number
Benjamin Graham's conservative valuation formula for defensive investors
Input Data
| EPS (TTM) | $8.00 | Latest 10-K |
| Book Value per Share | $36.05 | Latest 10-K Balance Sheet |
| Graham Constant | 22.5 | Benjamin Graham's formula |
Graham Number Result
$80.57
Intrinsic Value
$136.85
Current Price
-41.1%
Upside/Downside
Confidence: High
Conservative value investing approach
Calculation Breakdown
Formula:
√(22.5 × EPS × BVPS)
Step 1: Multiply constant by EPS
22.5 × 8.00 = 180.06
Step 2: Multiply by Book Value per Share
180.06 × 36.05 = 6490.78
Step 3: Take square root
√6490.78 = 80.57
Graham Number Result:
$80.57
WEX Graham Intrinsic Value
Growth-adjusted intrinsic value with two formula variants
Formula Selection
V = EPS × (8.5 + 2g)
Graham's original P/E shortcut for growth, no interest-rate adjustment
V = [EPS × (8.5 + 2g) × 4.4] / Y
Graham's 1974 refinement: adds rate-environment sensitivity
Active Formula: Base-Growth
8.00 × (8.5 + 2 × 35.7%)
Input Data & Growth Assumptions
Current EPS (TTM)$8.00
Latest 10-K • 2024-12-31T00:00:00
Historical 3Y35.7%
Financial statements
Historical 5Y16.2%
Financial statements
Custom
%
Enter a positive growth rate estimate (0-50%)
Graham Intrinsic Value Result
$638.78
Intrinsic Value
$136.85
Current Price
+366.8%
Upside/Downside
Base Formula
Growth: 35.7%
WEX Peter Lynch Fair Value
Growth-based valuation using PEG ratio analysis for growth stocks
Fair Value Calculation
EPS (TTM)$8.00
Latest 10-K • 2024-12-31T00:00:00
Historical 3Y35.7%
3-year earnings growth
Historical 5Y16.2%
5-year earnings growth
35.7%
1%50%
Fair Value Formula: EPS × Growth Rate
$8.00 × 35.7% = $285.38
$285.38
Fair Value
$136.85
Current Price
+108.5%
Upside/Downside
PEG Analysis
17.1x
Current P/E
35.7%
Growth Rate
0.48
PEG Ratio (P/E ÷ Growth Rate)
Significantly Undervalued
PEG Ratio Interpretation:
• PEG < 1.0: Undervalued (growth exceeds P/E)
• PEG = 1.0: Fairly valued (ideal Lynch ratio)
• PEG > 1.5: Overvalued (paying premium for growth)
Peter Lynch's Rule:
"The P/E ratio of any company that's fairly priced will equal its growth rate." A stock with 15% growth should trade at a P/E of 15 (PEG = 1.0).
WEX Earnings Power Value (EPV)
Normalized earnings-based valuation for sustainable earning power assessment
Earnings Normalization
| Earnings Component | Amount ($B) | Description |
|---|---|---|
| Reported Earnings | 0.3 | Base earnings from financial statements |
| Normalized Earnings | 0.3 | Final normalized earning power |
One-time Items: Remove non-recurring gains/losses
Cyclical Adjustment: Normalize for economic cycle position
EPV Result
$111.51
EPV per Share
$136.85
Current Price
-18.5%
Upside/Downside
6.7%
WACC: 6.7% (calculated from market data)
Confidence: High
Normalized earnings approach
EPV Calculation Breakdown
Enterprise Value Calculation
| Normalized Earnings | $0.3B |
| Cost of Capital | 6.7% |
| Enterprise Value | $4.6B |
Per Share Value
| Enterprise Value | $4.6B |
| Shares Outstanding | 0.0B |
| EPV per Share | $111.51 |
WACC Components
| Cost of Equity | 9.2% |
| After-Tax Cost of Debt | 3.5% |
| Equity Weight | 56.4% |
| Debt Weight | 43.6% |
| WACC | 6.7% |