WEN Valuation

Wendy's Co

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10.610

+0.11(1.048%)1D

Overview
Forecast
Valuation
Earnings

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 12.15 is considered Undervalued compared with the five-year average of 21.97. The fair price of Wendy's Co (WEN) is between 16.40 to 24.25 according to relative valuation methord. Compared to the current price of 10.61 USD , Wendy's Co is Undervalued By 35.32%.

Relative Value

Fair Zone

16.40-24.25

Current Price：10.61

35.32%

Undervalued

12.15

Trailing

Forward

11.35

EV/EBITDA

Wendy's Co. (WEN) has a current EV/EBITDA of 11.35. The 5-year average EV/EBITDA is 15.11. The thresholds are as follows: Strongly Undervalued below 10.72, Undervalued between 10.72 and 12.91, Fairly Valued between 17.31 and 12.91, Overvalued between 17.31 and 19.51, and Strongly Overvalued above 19.51. The current Forward EV/EBITDA of 11.35 falls within the Undervalued range.

16.66

EV/EBIT

Wendy's Co. (WEN) has a current EV/EBIT of 16.66. The 5-year average EV/EBIT is 21.03. The thresholds are as follows: Strongly Undervalued below 15.09, Undervalued between 15.09 and 18.06, Fairly Valued between 24.00 and 18.06, Overvalued between 24.00 and 26.97, and Strongly Overvalued above 26.97. The current Forward EV/EBIT of 16.66 falls within the Undervalued range.

0.92

Wendy's Co. (WEN) has a current PS of 0.92. The 5-year average PS is 2.02. The thresholds are as follows: Strongly Undervalued below 0.98, Undervalued between 0.98 and 1.50, Fairly Valued between 2.54 and 1.50, Overvalued between 2.54 and 3.05, and Strongly Overvalued above 3.05. The current Forward PS of 0.92 falls within the Strongly Undervalued range.

4.49

P/OCF

Wendy's Co. (WEN) has a current P/OCF of 4.49. The 5-year average P/OCF is 10.86. The thresholds are as follows: Strongly Undervalued below 5.26, Undervalued between 5.26 and 8.06, Fairly Valued between 13.65 and 8.06, Overvalued between 13.65 and 16.45, and Strongly Overvalued above 16.45. The current Forward P/OCF of 4.49 falls within the Strongly Undervalued range.

8.96

P/FCF

Wendy's Co. (WEN) has a current P/FCF of 8.96. The 5-year average P/FCF is 15.23. The thresholds are as follows: Strongly Undervalued below 8.30, Undervalued between 8.30 and 11.77, Fairly Valued between 18.70 and 11.77, Overvalued between 18.70 and 22.17, and Strongly Overvalued above 22.17. The current Forward P/FCF of 8.96 falls within the Undervalued range.

Wendy's Co (WEN) has a current Price-to-Book (P/B) ratio of 17.98. Compared to its 3-year average P/B ratio of 12.38 , the current P/B ratio is approximately 45.24% higher. Relative to its 5-year average P/B ratio of 11.23, the current P/B ratio is about 60.11% higher. Wendy's Co (WEN) has a Forward Free Cash Flow (FCF) yield of approximately 12.70%. Compared to its 3-year average FCF yield of 6.84%, the current FCF yield is approximately 85.82% lower. Relative to its 5-year average FCF yield of 6.17% , the current FCF yield is about 106.08% lower.

17.98

P/B

Median3y

12.38

Median5y

11.23

12.70

FCF Yield

Median3y

6.84

Median5y

6.17

Competitors Valuation Multiple

The average P/S ratio for WEN's competitors is 0.77, providing a benchmark for relative valuation. Wendy's Co Corp (WEN) exhibits a P/S ratio of 0.92, which is 20.33% above the industry average. Given its robust revenue growth of -1.72%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Papa John's International Inc

Arcos Dorados Holdings Inc

Cracker Barrel Old Country Store Inc

First Watch Restaurant Group Inc

Performance Decomposition

Market capitalization of WEN decreased by 36.66% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 9.57 to 9.82.

The secondary factor is the Revenue Growth, contributed -1.72%to the performance.

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

-1.72%

570.73M → 560.93M

Revenue Growth

2.61%

9.57 → 9.82

Margin Expansion

-37.55%

17.70 → 11.05

P/E Change

-36.66%