W Relative Valuation
W's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, W is overvalued; if below, it's undervalued.
Historical Valuation
Wayfair Inc (W) is now in the Fair zone, suggesting that its current forward PS ratio of 1.08 is considered Fairly compared with the five-year average of 4.49. The fair price of Wayfair Inc (W) is between 33.12 to 133.07 according to relative valuation methord.
Relative Value
Fair Zone
33.12-133.07
Current Price：109.99
Fair
38.85
PE
1Y
3Y
5Y
20.84
EV/EBITDA
Wayfair Inc. (W) has a current EV/EBITDA of 20.84. The 5-year average EV/EBITDA is 15.62. The thresholds are as follows: Strongly Undervalued below -50.02, Undervalued between -50.02 and -17.20, Fairly Valued between 48.44 and -17.20, Overvalued between 48.44 and 81.27, and Strongly Overvalued above 81.27. The current Forward EV/EBITDA of 20.84 falls within the Historic Trend Line -Fairly Valued range.
34.51
EV/EBIT
Wayfair Inc. (W) has a current EV/EBIT of 34.51. The 5-year average EV/EBIT is -10.62. The thresholds are as follows: Strongly Undervalued below -359.73, Undervalued between -359.73 and -185.18, Fairly Valued between 163.93 and -185.18, Overvalued between 163.93 and 338.49, and Strongly Overvalued above 338.49. The current Forward EV/EBIT of 34.51 falls within the Historic Trend Line -Fairly Valued range.
1.08
PS
Wayfair Inc. (W) has a current PS of 1.08. The 5-year average PS is 0.86. The thresholds are as follows: Strongly Undervalued below -0.37, Undervalued between -0.37 and 0.25, Fairly Valued between 1.47 and 0.25, Overvalued between 1.47 and 2.08, and Strongly Overvalued above 2.08. The current Forward PS of 1.08 falls within the Historic Trend Line -Fairly Valued range.
20.87
P/OCF
Wayfair Inc. (W) has a current P/OCF of 20.87. The 5-year average P/OCF is 12.00. The thresholds are as follows: Strongly Undervalued below -47.75, Undervalued between -47.75 and -17.88, Fairly Valued between 41.87 and -17.88, Overvalued between 41.87 and 71.75, and Strongly Overvalued above 71.75. The current Forward P/OCF of 20.87 falls within the Historic Trend Line -Fairly Valued range.
28.49
P/FCF
Wayfair Inc. (W) has a current P/FCF of 28.49. The 5-year average P/FCF is 9.26. The thresholds are as follows: Strongly Undervalued below -159.23, Undervalued between -159.23 and -74.98, Fairly Valued between 93.51 and -74.98, Overvalued between 93.51 and 177.76, and Strongly Overvalued above 177.76. The current Forward P/FCF of 28.49 falls within the Historic Trend Line -Fairly Valued range.
Wayfair Inc (W) has a current Price-to-Book (P/B) ratio of -4.99. Compared to its 3-year average P/B ratio of -2.48 , the current P/B ratio is approximately 101.48% higher. Relative to its 5-year average P/B ratio of -6.40, the current P/B ratio is about -21.94% higher. Wayfair Inc (W) has a Forward Free Cash Flow (FCF) yield of approximately 3.09%. Compared to its 3-year average FCF yield of -0.45%, the current FCF yield is approximately -791.83% lower. Relative to its 5-year average FCF yield of -1.30% , the current FCF yield is about -337.50% lower.
-4.99
P/B
Median3y
-2.48
Median5y
-6.40
3.09
FCF Yield
Median3y
-0.45
Median5y
-1.30
Competitors Valuation Multiple
The average P/S ratio for W's competitors is 0.56, providing a benchmark for relative valuation. Wayfair Inc Corp (W) exhibits a P/S ratio of 1.08, which is 92.42% above the industry average. Given its robust revenue growth of 8.08%, this premium appears unsustainable.
Performance Decomposition
1Y
3Y
5Y
Market capitalization of W increased by 127.39% over the past 1 year. The primary factor behind the change was an decrease in P/E Change from -21.26 to -41.58.
The secondary factor is the Margin Expansion, contributed 23.74%to the performance.
Overall, the performance of W in the past 1 year is driven by P/E Change. Which is more unsustainable.
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Frequently Asked Questions
Is Wayfair Inc (W) currently overvalued or undervalued?
Wayfair Inc (W) is now in the Fair zone, suggesting that its current forward PS ratio of 1.08 is considered Fairly compared with the five-year average of 4.49. The fair price of Wayfair Inc (W) is between 33.12 to 133.07 according to relative valuation methord.
What is Wayfair Inc (W) fair value?
W's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average , adjusted by weights. The fair price of Wayfair Inc (W) is between 33.12 to 133.07 according to relative valuation methord.
How does W's valuation metrics compare to the industry average?
The average P/S ratio for W's competitors is 0.56, providing a benchmark for relative valuation. Wayfair Inc Corp (W) exhibits a P/S ratio of 1.08, which is 92.42% above the industry average. Given its robust revenue growth of 8.08%, this premium appears unsustainable.
What is the current P/B ratio for Wayfair Inc (W) as of Jan 08 2026?
As of Jan 08 2026, Wayfair Inc (W) has a P/B ratio of -4.99. This indicates that the market values W at -4.99 times its book value.
What is the current FCF Yield for Wayfair Inc (W) as of Jan 08 2026?
As of Jan 08 2026, Wayfair Inc (W) has a FCF Yield of 3.09%. This means that for every dollar of Wayfair Inc’s market capitalization, the company generates 3.09 cents in free cash flow.
What is the current Forward P/E ratio for Wayfair Inc (W) as of Jan 08 2026?
As of Jan 08 2026, Wayfair Inc (W) has a Forward P/E ratio of 38.85. This means the market is willing to pay $38.85 for every dollar of Wayfair Inc’s expected earnings over the next 12 months.
What is the current Forward P/S ratio for Wayfair Inc (W) as of Jan 08 2026?
As of Jan 08 2026, Wayfair Inc (W) has a Forward P/S ratio of 1.08. This means the market is valuing W at $1.08 for every dollar of expected revenue over the next 12 months.