As of June 1, 2025, Wise PLC's estimated intrinsic value ranges from $522.69 to $1746.00 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $1746.00 | +58.9% |
| Discounted Cash Flow (5Y) | $1280.88 | +16.5% |
| Dividend Discount Model (Multi-Stage) | $740.62 | -32.6% |
| Dividend Discount Model (Stable) | $522.69 | -52.4% |
| Earnings Power Value | $600.67 | -45.3% |
Is Wise PLC (WISE.L) undervalued or overvalued?
With the current market price at $1099.00, the stock appears to be fairly valued.
Intrinsic value represents the "true" worth of a company based on its fundamentals rather than market sentiment. We've employed multiple methodologies to triangulate Wise PLC's intrinsic value, including:
The cost of capital is a critical factor in valuation models, representing the required return for investors.
| WACC Component | Low | High |
|---|---|---|
| Long-term bond rate | 4.0% | 4.5% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.41 | 0.61 |
| Cost of equity | 6.5% | 9.2% |
| Cost of debt | 4.6% | 10.4% |
| Tax rate | 25.0% | 25.6% |
| Debt/Equity ratio | 0.01 | 0.01 |
| After-tax WACC | 6.4% | 9.2% |
Our DCF model projects cash flows over 5-year and 10-year horizons, with the following key assumptions:
| DCF Model | Fair Value | Enterprise Value | % from Terminal Value |
|---|---|---|---|
| 5-Year Growth | $1,281 | $12,055M | 79.6% |
| 10-Year Growth | $1,746 | $18,672M | 66.1% |
| 5-Year EBITDA | $953 | $7,389M | 66.7% |
| 10-Year EBITDA | $1,305 | $12,392M | 49.0% |
The DDM values a company based on its expected future dividend payments. We used two approaches:
EPV assesses a company's value based on its current normalized earnings power, assuming no growth.
| EPV Component | Value |
|---|---|
| Normalized Earnings | $180M |
| Discount Rate (WACC) | 9.2% - 6.4% |
| Enterprise Value | $1,953M - $2,804M |
| Net Debt | $(6,167)M |
| Equity Value | $8,120M - $8,971M |
| Outstanding Shares | 14M |
| Fair Value | $571 - $631 |
| Selected Fair Value | $600.67 |
| Metric | Value |
|---|---|
| Market Capitalization | $15634M |
| Enterprise Value | $9468M |
| Trailing P/E | 36.25 |
| Forward P/E | 35.19 |
| Trailing EV/EBITDA | 5.75 |
| Current Dividend Yield | 62.96% |
| Dividend Growth Rate (5Y) | 0.00% |
| Debt-to-Equity Ratio | 0.01 |
To determine the most reliable intrinsic value estimate, we weigh each valuation method based on:
| Valuation Method | Weight | Weighted Value |
|---|---|---|
| Discounted Cash Flow (10Y) | 30% | $523.80 |
| Discounted Cash Flow (5Y) | 25% | $320.22 |
| Dividend Discount Model (Multi-Stage) | 20% | $148.12 |
| Dividend Discount Model (Stable) | 15% | $78.40 |
| Earnings Power Value | 10% | $60.07 |
| Weighted Average | 100% | $1130.62 |
Based on our comprehensive valuation analysis, Wise PLC's weighted average intrinsic value is $1130.62, which is approximately 2.9% above the current market price of $1099.00.
Key investment considerations:
Given these factors, we believe Wise PLC is currently fairly valued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.