WNS
WNS (Holdings) Limited
$76.48
Platform & Compounding FCF
70%
Two-stage FCF DCF
Moderate
·
Conviction
Overvalued
Trading 22.1% above fair value
You pay
$76.48
Bear
$46.40
Fair
$62.65
Bull
$78.37
Bear
$46.40
-39.3%
6% stage 1 growth, 11% discount
Fair
$62.65
-18.1%
9% stage 1 growth, 11% discount
Bull
$78.37
+2.5%
12% stage 1 growth, 11% discount
Adjust Assumptions
9.4%
11.0%
3.0%
Key Value Driver
FCF growth rate (9% base case)
Terminal Value % of EV
38%
Implied Market Multiple
25.0x
Market is pricing in (growth)
11.9%
vs 9.4% base
Analyst Consensus (External Reference)
Never blended into the bear/base/bull estimates above.
Average Target (21 analysts)
$70.63
Divergence from AlphaVal
11%
Summary
Using a two-stage FCF DCF with 9% growth decelerating over 15 years, discounted at 11%, the base-case intrinsic value is $62.65 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