WING
Wingstop Inc.
$153.29
Stable Earnings Power
80%
P/Adj-EPS × Normalized Multiple
Moderate
·
Conviction
Undervalued
Trading 32.3% below fair value
You pay
$153.29
Bear
$189.50
Fair
$226.35
Bull
$263.20
Bear
$189.50
+23.6%
$6.36 × 27x P/E
Fair
$226.35
+47.7%
$6.36 × 32x P/E
Bull
$263.20
+71.7%
$6.36 × 38x P/E
Key Value Driver
Normalized P/E multiple (32x base case)
Implied Market Multiple
24.1x
Summary
Our base-case estimate uses a valuation based on adjusted earnings per share and a normalized price-to-earnings multiple. We then blend that result with the average analyst price target of $275.64 from 38 analysts, using a 30% weight on analyst consensus. That produces an estimated intrinsic value of $226.35 per share.
Warnings
Wall Street's average price target is $275.64 (from 38 analysts). Our estimate is 26% below the consensus -- consider that gap carefully.
Key Risks
- Growth DCF inappropriate — terminal value assumptions dominate
- EV/EBITDA misleading for regulated businesses where capex is mandated
- Regulatory risk is a fat tail not visible in normal multiples