WEN PE Ratio & Valuation,Is WEN Overvalued

WEN Relative Valuation

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

Historical Valuation

Wendy's Co (WEN) is now in the Undervalued zone, suggesting that its current forward PE ratio of 9.83 is considered Undervalued compared with the five-year average of 20.48. The fair price of Wendy's Co (WEN) is between 19.20 to 26.66 according to relative valuation methord. Compared to the current price of 8.22 USD , Wendy's Co is Undervalued By 57.18%.

Relative Value

Fair Zone

19.20-26.66

Current Price：8.22

57.18%

Undervalued

9.83

10.53

EV/EBITDA

Wendy's Co. (WEN) has a current EV/EBITDA of 10.53. The 5-year average EV/EBITDA is 14.56. The thresholds are as follows: Strongly Undervalued below 10.12, Undervalued between 10.12 and 12.34, Fairly Valued between 16.78 and 12.34, Overvalued between 16.78 and 18.99, and Strongly Overvalued above 18.99. The current Forward EV/EBITDA of 10.53 falls within the Undervalued range.

15.62

EV/EBIT

Wendy's Co. (WEN) has a current EV/EBIT of 15.62. The 5-year average EV/EBIT is 20.28. The thresholds are as follows: Strongly Undervalued below 14.71, Undervalued between 14.71 and 17.49, Fairly Valued between 23.06 and 17.49, Overvalued between 23.06 and 25.84, and Strongly Overvalued above 25.84. The current Forward EV/EBIT of 15.62 falls within the Undervalued range.

0.70

Wendy's Co. (WEN) has a current PS of 0.70. The 5-year average PS is 1.88. The thresholds are as follows: Strongly Undervalued below 0.76, Undervalued between 0.76 and 1.32, Fairly Valued between 2.44 and 1.32, Overvalued between 2.44 and 3.00, and Strongly Overvalued above 3.00. The current Forward PS of 0.70 falls within the Strongly Undervalued range.

3.80

P/OCF

Wendy's Co. (WEN) has a current P/OCF of 3.80. The 5-year average P/OCF is 10.20. The thresholds are as follows: Strongly Undervalued below 3.85, Undervalued between 3.85 and 7.03, Fairly Valued between 13.38 and 7.03, Overvalued between 13.38 and 16.55, and Strongly Overvalued above 16.55. The current Forward P/OCF of 3.80 falls within the Strongly Undervalued range.

9.13

P/FCF

Wendy's Co. (WEN) has a current P/FCF of 9.13. The 5-year average P/FCF is 14.68. The thresholds are as follows: Strongly Undervalued below 7.25, Undervalued between 7.25 and 10.97, Fairly Valued between 18.40 and 10.97, Overvalued between 18.40 and 22.11, and Strongly Overvalued above 22.11. The current Forward P/FCF of 9.13 falls within the Undervalued range.

Wendy's Co (WEN) has a current Price-to-Book (P/B) ratio of 14.24. Compared to its 3-year average P/B ratio of 12.97 , the current P/B ratio is approximately 9.75% higher. Relative to its 5-year average P/B ratio of 11.62, the current P/B ratio is about 22.52% higher. Wendy's Co (WEN) has a Forward Free Cash Flow (FCF) yield of approximately 15.29%. Compared to its 3-year average FCF yield of 8.05%, the current FCF yield is approximately 90.00% lower. Relative to its 5-year average FCF yield of 6.94% , the current FCF yield is about 120.27% lower.

14.24

P/B

Median3y

12.97

Median5y

11.62

15.29

FCF Yield

Median3y

8.05

Median5y

6.94

Competitors Valuation Multiple

The average P/S ratio for WEN's competitors is 0.87, providing a benchmark for relative valuation. Wendy's Co Corp (WEN) exhibits a P/S ratio of 0.70, which is -19.65% above the industry average. Given its robust revenue growth of -3.04%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of WEN decreased by 43.66% over the past 1 year. The primary factor behind the change was an decrease in Revenue Growth from 566.74M to 549.52M.

The secondary factor is the Margin Expansion, contributed -9.14%to the performance.

Overall, the performance of WEN in the past 1 year is driven by Revenue Growth. Which is more sustainable.

-3.04%

566.74M → 549.52M

Revenue Growth

-9.14%

8.86 → 8.05

Margin Expansion

-31.48%

12.61 → 8.64

P/E Change

-43.66%

14.59 → 8.22

Mkt Cap Growth

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Frequently Asked Questions

Is Wendy's Co (WEN) currently overvalued or undervalued?

What is Wendy's Co (WEN) fair value?

WEN'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 Wendy's Co (WEN) is between 19.20 to 26.66 according to relative valuation methord.

How does WEN's valuation metrics compare to the industry average?

What is the current P/B ratio for Wendy's Co (WEN) as of Jan 08 2026?

As of Jan 08 2026, Wendy's Co (WEN) has a P/B ratio of 14.24. This indicates that the market values WEN at 14.24 times its book value.

What is the current FCF Yield for Wendy's Co (WEN) as of Jan 08 2026?

As of Jan 08 2026, Wendy's Co (WEN) has a FCF Yield of 15.29%. This means that for every dollar of Wendy's Co’s market capitalization, the company generates 15.29 cents in free cash flow.

What is the current Forward P/E ratio for Wendy's Co (WEN) as of Jan 08 2026?

As of Jan 08 2026, Wendy's Co (WEN) has a Forward P/E ratio of 9.83. This means the market is willing to pay $9.83 for every dollar of Wendy's Co’s expected earnings over the next 12 months.

What is the current Forward P/S ratio for Wendy's Co (WEN) as of Jan 08 2026?

As of Jan 08 2026, Wendy's Co (WEN) has a Forward P/S ratio of 0.70. This means the market is valuing WEN at $0.70 for every dollar of expected revenue over the next 12 months.

WEN Valuation