As of June 13, 2025, Walkme Ltd has a Discounted Cash Flow (DCF) derived fair value of $0.00 per share. With the current market price at $13.95, this represents a potential upside of -348.0%.
| Key Metrics | Value |
|---|---|
| DCF Fair Value (5-year) | $0.00 |
| DCF Fair Value (10-year) | $0.00 |
| Potential Upside (5-year) | -273.8% |
| Potential Upside (10-year) | -348.0% |
| Discount Rate (WACC) | 6.7% - 8.2% |
Revenue is projected to grow from $267 million in 12-2023 to $886 million by 12-2033, representing a compound annual growth rate of approximately 12.7%.
| Fiscal Year | Revenue (USD millions) | Growth |
|---|---|---|
| 12-2023 | 267 | 9% |
| 12-2024 | 279 | 5% |
| 12-2025 | 321 | 15% |
| 12-2026 | 371 | 16% |
| 12-2027 | 428 | 16% |
| 12-2028 | 485 | 13% |
| 12-2029 | 553 | 14% |
| 12-2030 | 642 | 16% |
| 12-2031 | 730 | 14% |
| 12-2032 | 825 | 13% |
| 12-2033 | 886 | 7% |
Net profit margin is expected to improve from -21% in 12-2023 to -14% by 12-2033, driven by operational efficiency and economies of scale.
| Fiscal Year | Net Profit (USD millions) | Profit Margin |
|---|---|---|
| 12-2023 | (57) | -21% |
| 12-2024 | (50) | -18% |
| 12-2025 | (55) | -17% |
| 12-2026 | (61) | -16% |
| 12-2027 | (67) | -16% |
| 12-2028 | (73) | -15% |
| 12-2029 | (83) | -15% |
| 12-2030 | (95) | -15% |
| 12-2031 | (107) | -15% |
| 12-2032 | (120) | -15% |
| 12-2033 | (128) | -14% |
with a 5-year average of $2 million. Projected CapEx is expected to maintain at approximately 1% of revenue.
Depreciation is based on an average useful life of 5 years for capital assets.
| Fiscal Year | D&A (USD millions) |
|---|---|
| 12-2024 | 2 |
| 12-2025 | 3 |
| 12-2026 | 3 |
| 12-2027 | 4 |
| 12-2028 | 5 |
| 12-2029 | 5 |
Net working capital is expected to increase gradually, with projected changes affecting free cash flow.
| Components | Average Days |
|---|---|
| Days Receivables | 65 |
| Days Inventory | 0 |
| Days Payables | 40 |
| Fiscal Year | EBITDA | Tax | CapEx | Change in NWC | FCF |
|---|---|---|---|---|---|
| 6M/2024 | (32) | (1) | 2 | 4 | (36) |
| 2025 | (70) | (2) | 4 | 5 | (77) |
| 2026 | (78) | (2) | 5 | 7 | (87) |
| 2027 | (87) | (3) | 5 | 11 | (101) |
| 2028 | (95) | (3) | 6 | 9 | (107) |
| Valuation Method | Fair Price (USD) | Potential Upside |
|---|---|---|
| 5-Year DCF (Growth) | 0.00 | -273.8% |
| 10-Year DCF (Growth) | 0.00 | -348.0% |
| 5-Year DCF (EBITDA) | 0.00 | -100.0% |
| 10-Year DCF (EBITDA) | 0.00 | -100.0% |
Is Walkme Ltd (WKME) a buy or a sell? Walkme Ltd is definitely a sell. Based on our DCF analysis, Walkme Ltd (WKME) appears to be overvalued with upside potential of -348.0%. The company's strong projected growth in revenue and profitability, coupled with consistent capital expenditure, supports our positive outlook on its intrinsic value.
Key investment drivers include:
Investors should consider reducing exposure at the current market price of $13.95.