What is WISE.ST's Intrinsic value?

Wise Group AB (WISE.ST) Intrinsic Value Analysis

Executive Summary

As of June 18, 2025, Wise Group AB's estimated intrinsic value ranges from $236.02 to $236.02 per share, depending on the valuation methodology applied.

Valuation Method Fair Value (USD) Implied Upside/Downside
Earnings Power Value $236.02 +1317.5%

Is Wise Group AB (WISE.ST) undervalued or overvalued?

With the current market price at $16.65, the stock appears to be significantly undervalued.

Understanding Intrinsic Value

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 Group AB's intrinsic value, including:

  1. Earnings Power Value (EPV): Values the company based on its current earnings power, assuming no growth

Weighted Average Cost of Capital (WACC)

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 2.5% 3.0%
Equity market risk premium 5.1% 6.1%
Adjusted beta 0.46 0.56
Cost of equity 4.9% 6.9%
Cost of debt 4.4% 7.0%
Tax rate 16.1% 22.1%
Debt/Equity ratio 0.48 0.48
After-tax WACC 4.5% 6.4%

Valuation Methods

3. Earnings Power Value (EPV)

EPV assesses a company's value based on its current normalized earnings power, assuming no growth.

EPV Component Value
Normalized Earnings $99M
Discount Rate (WACC) 6.4% - 4.5%
Enterprise Value $1,539M - $2,209M
Net Debt $130M
Equity Value $1,409M - $2,079M
Outstanding Shares 7M
Fair Value $191 - $281
Selected Fair Value $236.02

Key Financial Metrics

Metric Value
Market Capitalization $123M
Enterprise Value $253M
Trailing P/E 0.00
Forward P/E 0.00
Trailing EV/EBITDA 3.30
Current Dividend Yield 1428.57%
Dividend Growth Rate (5Y) 5.58%
Debt-to-Equity Ratio 0.48

Investment Decision Framework

To determine the most reliable intrinsic value estimate, we weigh each valuation method based on:

  1. Forecast Certainty: DCF methods rely on long-term projections, while earnings power value focuses on current normalized earnings
  2. Business Model Alignment: Dividend models are more appropriate for mature companies with established dividend policies
  3. Historical Accuracy: How well each method has predicted fair value historically

Valuation Weight Matrix

Valuation Method Weight Weighted Value
Earnings Power Value 100% $23.60
Weighted Average 100% $236.02

Investment Conclusion

Based on our comprehensive valuation analysis, Wise Group AB's weighted average intrinsic value is $236.02, which is approximately 1317.5% above the current market price of $16.65.

Key investment considerations:

  • Strong projected earnings growth (-3% to -3% margin)
  • Consistent cash flow generation
  • Historical dividend growth of 5.58%

Given these factors, we believe Wise Group AB is currently significantly undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.