WEX
WEX Inc.
$150.56
Platform & Compounding FCF
70%
Two-stage FCF DCF
Moderate
·
Conviction
Fair Value
Trading 18.6% below fair value
You pay
$150.56
Bear
$145.46
Fair
$184.92
Bull
$222.36
Bear
$145.46
-3.4%
5% stage 1 growth, 11% discount
Fair
$184.92
+22.8%
9% stage 1 growth, 11% discount
Bull
$222.36
+47.7%
11% stage 1 growth, 11% discount
Key Value Driver
FCF growth rate (9% base case)
Terminal Value % of EV
38%
Implied Market Multiple
15.4x
Summary
Our base-case estimate uses a two-stage discounted cash flow model based on free cash flow. We then blend that result with the average analyst price target of $177.67 from 32 analysts, using a 30% weight on analyst consensus. That produces an estimated intrinsic value of $184.92 per share.
Key Risks
- P/E alone misleads — earnings depressed by growth investment
- Cyclical or commodity businesses may be misclassified as platforms
- Terminal value dominance suggests sensitivity to long-run assumptions