WRBY
Warby Parker Inc.
$24.11
Stable Earnings Power
80%
P/Adj-EPS × Normalized Multiple
Strong
·
Conviction
Overvalued
Trading 7767.7% above fair value
You pay
$24.11
Bear
$0.27
Fair
$0.31
Bull
$0.34
Bear
$0.27
-98.9%
$0.01 × 20x P/E
Fair
$0.31
-98.7%
$0.01 × 23x P/E
Bull
$0.34
-98.6%
$0.01 × 26x P/E
Adjust Assumptions
23.4x
0.01$
Key Value Driver
Normalized P/E multiple (23x base case)
Implied Market Multiple
1840.1x
Analyst Consensus (External Reference)
Never blended into the bear/base/bull estimates above.
Average Target (16 analysts)
$30.60
Divergence from AlphaVal
99%
Summary
Applying a 23x P/E to adjusted EPS of $0.01, the base-case value is $0.31 per share.
Warnings
Wall Street's average price target is $30.60 (from 16 analysts). Our estimate is 99% 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