WEN Fair Value Estimate
$16.84121.0% undervalued
Blended fair value estimate based on DCF, Graham Number, and earnings-based models.
Wendy`s Co - Class A
Exchange: NASDAQSector: Consumer CyclicalIndustry: Restaurants
The Wendy's Company is a quick-service restaurant company in the hamburger sandwich segment. Wendy's is primarily engaged in the business of operating, developing and franchising a system of distinctive quick-service restaurants serving food. At December 30, 2012, there were 6,186 Wendy's restaurants in operation in North America. Of these restaurants, 1,427 were operated by Wendy's and 4,759 by a total of 439 franchisees. In addition, at December 30, 2012, there were 374 franchised Wendy's restaurants in operation in 26 countries and territories other than North America. Wendy's is also a 50% partner in a Canadian restaurant real estate joint venture with Tim Hortons Inc., a quick-service restaurant chain. The joint venture owns Wendy's/Tim Hortons combo units in Canada. In August 2013, The Wendy's Company announced the sale of 30 restaurants in the St. Louis market to BB St. Louis, LLC.
Current Price
$7.62
-1.68%GoodMoat Value
$16.84
121.0% undervaluedProfile
Valuation (TTM)
Market Cap$1.45B
P/E9.76
EV—
P/B12.36
Shares Out190.36M
P/Sales0.66
Revenue$2.19B
EV/EBITDA10.23
Wendy`s Co - Class A (WEN) Valuation
WEN Valuation Metrics
FCF$242.62M
FCF Growth Rate2.08%
EPS Growth (CAGR)3.16%
WACC10.00%
Fair Value Models
Graham Number, PEG-based, and Earnings-based models
View Fair Value →WEN Valuation & Fair Value Analysis
Wendy`s Co - Class A (WEN) valuation analysis using multiple fair value methodologies. GoodMoat calculates a blended fair value target using discounted cash flow (DCF) analysis, the Graham Number, and earnings-based valuation models.
The GoodMoat Fair Value target for Wendy`s Co - Class A is $16.84. The current stock price is $7.62, suggesting the stock is 121.0% undervalued.
The price-to-earnings (P/E) ratio is 9.76. Price-to-book ratio is 12.36. Price-to-sales ratio is 0.66. Enterprise value to EBITDA is 10.23. PEG ratio is -0.24.
GoodMoat's valuation models include the Graham Number (based on EPS and book value), an earnings-based model (discounted future EPS), and a PEG-adjusted valuation. The three models are averaged to produce a blended fair value estimate. Use these tools alongside the DCF calculator and reverse DCF to form a comprehensive view of Wendy`s Co - Class A's intrinsic value.