WEN PE Ratio & Valuation, Is WEN Overvalued

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 20.24. The fair price of Wendy's Co (WEN) is between 10.63 to 16.84 according to relative valuation method. Compared to the current price of 6.83 USD , Wendy's Co By Undervalued By 35.79%.

Relative Value

Fair Zone

10.63-16.84

Current Price：6.83

35.79%

Undervalued

P/E

EV/EBITDA

EV/EBIT

P/S

P/OCF

P/FCF

Trailing

Forward

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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 13.22, the current P/B ratio is approximately 7.68% higher. Relative to its 5-year average P/B ratio of 11.77, the current P/B ratio is about 20.97% 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 8.41%, the current FCF yield is approximately 81.75% lower. Relative to its 5-year average FCF yield of 7.05%, the current FCF yield is about 116.88% lower.

Competitors Valuation Multiple

AI Analysis

The average P/S ratio for WEN competitors is 0.92, providing a benchmark for relative valuation. Wendy's Co Corp (WEN.O) exhibits a P/S ratio of 0.70, which is -24.02% above the industry average. Given its robust revenue growth of -5.45%, this premium appears unsustainable.

P/E

P/S

EV/EBITDA

EV/EBIT

Earnings Growth

Market Cap

Performance Decomposition

AI Analysis

Market capitalization of WEN increased by 0.00% over the past 1 year(s). The primary factor behind the change was an decrease in Unknown from 0.00 to 0.00.

The secondary factor is the Unknown, contributed 0.00% to the performance.

Overall, the performance of WEN in the past 1 year(s) is driven by Unknown.

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Frequently Asked Questions

Is 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 10.63 to 16.84 according to relative valuation method.

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

The average P/S ratio for WEN's competitors is 0.92, providing a benchmark for relative valuation. Wendy's Co Corp (WEN) exhibits a P/S ratio of 0.70, which is -24.02% above the industry average. Given its robust revenue growth of -5.45%, this premium appears unsustainable.

What is the current P/B ratio for Wendy's Co (WEN) as of Mar 31 2026?

As of Mar 31 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 Mar 31 2026?

As of Mar 31 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 Mar 31 2026?

As of Mar 31 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 Mar 31 2026?

As of Mar 31 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