WNS
WNS (Holdings) Limited
$76.48
Platform & Compounding FCF
70%
Two-stage FCF DCF
Moderate
·
Conviction
Overvalued
Trading 29.1% above fair value
You pay
$76.48
Bear
$43.75
Fair
$59.23
Bull
$74.20
Bear
$43.75
-42.8%
6% stage 1 growth, 11% discount
Fair
$59.23
-22.6%
9% stage 1 growth, 11% discount
Bull
$74.20
-3.0%
12% stage 1 growth, 11% discount
Key Value Driver
FCF growth rate (9% base case)
Terminal Value % of EV
38%
Implied Market Multiple
28.0x
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 $70.63 from 21 analysts, using a 25% weight on analyst consensus. That produces an estimated intrinsic value of $59.23 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