WIX
Wix.com Ltd.
$87.62
Platform & Compounding FCF
85%
Two-stage FCF DCF
Strong
·
Conviction
Undervalued
Trading 68.9% below fair value
You pay
$87.62
Bear
$163.19
Fair
$282.18
Bull
$423.29
Bear
$163.19
+86.2%
11% stage 1 growth, 11% discount
Fair
$282.18
+222.0%
18% stage 1 growth, 11% discount
Bull
$423.29
+383.1%
23% stage 1 growth, 11% discount
Adjust Assumptions
17.6%
11.0%
3.0%
Key Value Driver
FCF growth rate (18% base case)
Terminal Value % of EV
45%
Implied Market Multiple
12.5x
Market is pricing in (growth)
2.6%
vs 17.6% base
Analyst Consensus (External Reference)
Never blended into the bear/base/bull estimates above.
Average Target (41 analysts)
$78.00
Divergence from AlphaVal
262%
Summary
Using a two-stage FCF DCF with 18% growth decelerating over 15 years, discounted at 11%, the base-case intrinsic value is $282.18 per share.
Warnings
Stock-based employee pay equals 469% of profits. This dilutes existing shareholders, so cash flow alone overstates what owners really earn.
Wall Street's average price target is $78.00 (from 41 analysts). Our estimate is 262% above the consensus -- consider that gap carefully.
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