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 10.21 is considered Undervalued compared with the five-year average of 20.81. The fair price of Wendy's Co (WEN) is between 14.51 to 21.98 according to relative valuation methord. Compared to the current price of 8.54 USD , Wendy's Co is Undervalued By 41.16%.
Relative Value
Fair Zone
14.51-21.98
Current Price：8.54
41.16%
Undervalued
10.21
PE
1Y
3Y
5Y
Trailing
Forward
10.65
EV/EBITDA
Wendy's Co. (WEN) has a current EV/EBITDA of 10.65. The 5-year average EV/EBITDA is 14.69. The thresholds are as follows: Strongly Undervalued below 10.26, Undervalued between 10.26 and 12.47, Fairly Valued between 16.90 and 12.47, Overvalued between 16.90 and 19.11, and Strongly Overvalued above 19.11. The current Forward EV/EBITDA of 10.65 falls within the Undervalued range.
15.77
EV/EBIT
Wendy's Co. (WEN) has a current EV/EBIT of 15.77. The 5-year average EV/EBIT is 20.45. The thresholds are as follows: Strongly Undervalued below 14.81, Undervalued between 14.81 and 17.63, Fairly Valued between 23.27 and 17.63, Overvalued between 23.27 and 26.08, and Strongly Overvalued above 26.08. The current Forward EV/EBIT of 15.77 falls within the Undervalued range.
0.73
PS
Wendy's Co. (WEN) has a current PS of 0.73. The 5-year average PS is 1.91. The thresholds are as follows: Strongly Undervalued below 0.81, Undervalued between 0.81 and 1.36, Fairly Valued between 2.46 and 1.36, Overvalued between 2.46 and 3.02, and Strongly Overvalued above 3.02. The current Forward PS of 0.73 falls within the Strongly Undervalued range.
3.99
P/OCF
Wendy's Co. (WEN) has a current P/OCF of 3.99. The 5-year average P/OCF is 10.36. The thresholds are as follows: Strongly Undervalued below 4.17, Undervalued between 4.17 and 7.27, Fairly Valued between 13.46 and 7.27, Overvalued between 13.46 and 16.56, and Strongly Overvalued above 16.56. The current Forward P/OCF of 3.99 falls within the Strongly Undervalued range.
9.57
P/FCF
Wendy's Co. (WEN) has a current P/FCF of 9.57. The 5-year average P/FCF is 14.81. The thresholds are as follows: Strongly Undervalued below 7.48, Undervalued between 7.48 and 11.15, Fairly Valued between 18.48 and 11.15, Overvalued between 18.48 and 22.14, and Strongly Overvalued above 22.14. The current Forward P/FCF of 9.57 falls within the Undervalued range.
Wendy's Co (WEN) has a current Price-to-Book (P/B) ratio of 14.88. Compared to its 3-year average P/B ratio of 12.88 , the current P/B ratio is approximately 15.57% higher. Relative to its 5-year average P/B ratio of 11.54, the current P/B ratio is about 28.99% higher. Wendy's Co (WEN) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 7.73%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 6.76% , the current FCF yield is about -100.00% lower.
14.88
P/B
Median3y
12.88
Median5y
11.54
14.60
FCF Yield
Median3y
7.73
Median5y
6.76
Competitors Valuation Multiple
The average P/S ratio for WEN's competitors is , providing a benchmark for relative valuation. Wendy's Co Corp (WEN) exhibits a P/S ratio of , which is NaN% above the industry average. Given its robust revenue growth of -3.04%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of WEN decreased by 46.01% 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.
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FAQ
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