WDH Valuation

Waterdrop Inc

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1.792

-0.008(-0.444%)1D

Overview
Forecast
Valuation
Earnings

WDH Relative Valuation

WDH'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, WDH is overvalued; if below, it's undervalued.

Historical Valuation

Waterdrop Inc (WDH) is now in the Fair zone, suggesting that its current forward PS ratio of 1.38 is considered Fairly compared with the five-year average of 8.03. The fair price of Waterdrop Inc (WDH) is between 0.96 to 2.65 according to relative valuation methord.

Relative Value

Fair Zone

0.96-2.65

Current Price：1.79

Fair

13.58

Trailing

Forward

10.12

EV/EBITDA

Waterdrop Inc. (WDH) has a current EV/EBITDA of 10.12. The 5-year average EV/EBITDA is 0.91. The thresholds are as follows: Strongly Undervalued below -15.13, Undervalued between -15.13 and -7.11, Fairly Valued between 8.93 and -7.11, Overvalued between 8.93 and 16.95, and Strongly Overvalued above 16.95. The current Forward EV/EBITDA of 10.12 falls within the Overvalued range.

11.12

EV/EBIT

Waterdrop Inc. (WDH) has a current EV/EBIT of 11.12. The 5-year average EV/EBIT is 1.84. The thresholds are as follows: Strongly Undervalued below -14.25, Undervalued between -14.25 and -6.20, Fairly Valued between 9.89 and -6.20, Overvalued between 9.89 and 17.93, and Strongly Overvalued above 17.93. The current Forward EV/EBIT of 11.12 falls within the Overvalued range.

1.38

Waterdrop Inc. (WDH) has a current PS of 1.38. The 5-year average PS is 1.51. The thresholds are as follows: Strongly Undervalued below -0.11, Undervalued between -0.11 and 0.70, Fairly Valued between 2.32 and 0.70, Overvalued between 2.32 and 3.13, and Strongly Overvalued above 3.13. The current Forward PS of 1.38 falls within the Historic Trend Line -Fairly Valued range.

19.28

P/OCF

Waterdrop Inc. (WDH) has a current P/OCF of 19.28. The 5-year average P/OCF is 13.84. The thresholds are as follows: Strongly Undervalued below -20.14, Undervalued between -20.14 and -3.15, Fairly Valued between 30.83 and -3.15, Overvalued between 30.83 and 47.83, and Strongly Overvalued above 47.83. The current Forward P/OCF of 19.28 falls within the Historic Trend Line -Fairly Valued range.

24.24

P/FCF

Waterdrop Inc. (WDH) has a current P/FCF of 24.24. The 5-year average P/FCF is 10.92. The thresholds are as follows: Strongly Undervalued below -20.99, Undervalued between -20.99 and -5.04, Fairly Valued between 26.87 and -5.04, Overvalued between 26.87 and 42.83, and Strongly Overvalued above 42.83. The current Forward P/FCF of 24.24 falls within the Historic Trend Line -Fairly Valued range.

Waterdrop Inc (WDH) has a current Price-to-Book (P/B) ratio of 0.96. Compared to its 3-year average P/B ratio of 0.90 , the current P/B ratio is approximately 6.45% higher. Relative to its 5-year average P/B ratio of 0.83, the current P/B ratio is about 15.48% higher. Waterdrop Inc (WDH) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 2.09%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of -0.42% , the current FCF yield is about -100.00% lower.

0.96

P/B

Median3y

0.90

Median5y

0.83

0.00

FCF Yield

Median3y

2.09

Median5y

-0.42

Competitors Valuation Multiple

The average P/S ratio for WDH's competitors is 0.79, providing a benchmark for relative valuation. Waterdrop Inc Corp (WDH) exhibits a P/S ratio of 1.38, which is 74.86% above the industry average. Given its robust revenue growth of 6.95%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Kingstone Companies Inc

Tian Ruixiang Holdings Ltd

Loss

97.45M

ZBAO.O

Zhibao Technology Inc

0.66

33.33M

Performance Decomposition

Market capitalization of WDH increased by 74.19% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 8.12 to 11.88.

The secondary factor is the Margin Expansion, contributed 21.00%to the performance.

Overall, the performance of WDH in the past 1 year is driven by P/E Change. Which is more unsustainable.

6.95%

704.70M → 753.69M

Revenue Growth

21.00%

11.43 → 13.83

Margin Expansion

46.24%

8.12 → 11.88

P/E Change

74.19%