WU Valuation

Western Union Co

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8.110

-0.03(-0.369%)1D

Overview
Forecast
Valuation
Earnings

WU Relative Valuation

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

Historical Valuation

Western Union Co (WU) is now in the Undervalued zone, suggesting that its current forward PE ratio of 4.72 is considered Undervalued compared with the five-year average of 8.36. The fair price of Western Union Co (WU) is between 13.09 to 18.76 according to relative valuation methord. Compared to the current price of 8.11 USD , Western Union Co is Undervalued By 38.1%.

Relative Value

Fair Zone

13.09-18.76

Current Price：8.11

38.1%

Undervalued

4.72

Trailing

Forward

4.48

EV/EBITDA

Western Union Co. (WU) has a current EV/EBITDA of 4.48. The 5-year average EV/EBITDA is 6.62. The thresholds are as follows: Strongly Undervalued below 3.83, Undervalued between 3.83 and 5.23, Fairly Valued between 8.01 and 5.23, Overvalued between 8.01 and 9.41, and Strongly Overvalued above 9.41. The current Forward EV/EBITDA of 4.48 falls within the Undervalued range.

5.63

EV/EBIT

Western Union Co. (WU) has a current EV/EBIT of 5.63. The 5-year average EV/EBIT is 8.08. The thresholds are as follows: Strongly Undervalued below 4.83, Undervalued between 4.83 and 6.46, Fairly Valued between 9.71 and 6.46, Overvalued between 9.71 and 11.33, and Strongly Overvalued above 11.33. The current Forward EV/EBIT of 5.63 falls within the Undervalued range.

0.64

Western Union Co. (WU) has a current PS of 0.64. The 5-year average PS is 1.28. The thresholds are as follows: Strongly Undervalued below 0.51, Undervalued between 0.51 and 0.90, Fairly Valued between 1.66 and 0.90, Overvalued between 1.66 and 2.05, and Strongly Overvalued above 2.05. The current Forward PS of 0.64 falls within the Undervalued range.

4.04

P/OCF

Western Union Co. (WU) has a current P/OCF of 4.04. The 5-year average P/OCF is 7.41. The thresholds are as follows: Strongly Undervalued below 3.22, Undervalued between 3.22 and 5.32, Fairly Valued between 9.51 and 5.32, Overvalued between 9.51 and 11.60, and Strongly Overvalued above 11.60. The current Forward P/OCF of 4.04 falls within the Undervalued range.

3.81

P/FCF

Western Union Co. (WU) has a current P/FCF of 3.81. The 5-year average P/FCF is 12.50. The thresholds are as follows: Strongly Undervalued below -26.89, Undervalued between -26.89 and -7.19, Fairly Valued between 32.20 and -7.19, Overvalued between 32.20 and 51.89, and Strongly Overvalued above 51.89. The current Forward P/FCF of 3.81 falls within the Historic Trend Line -Fairly Valued range.

Western Union Co (WU) has a current Price-to-Book (P/B) ratio of 2.99. Compared to its 3-year average P/B ratio of 7.56 , the current P/B ratio is approximately -60.50% higher. Relative to its 5-year average P/B ratio of 20.90, the current P/B ratio is about -85.70% higher. Western Union Co (WU) has a Forward Free Cash Flow (FCF) yield of approximately 17.57%. Compared to its 3-year average FCF yield of 13.62%, the current FCF yield is approximately 28.97% lower. Relative to its 5-year average FCF yield of 12.80% , the current FCF yield is about 37.24% lower.

2.99

P/B

Median3y

7.56

Median5y

20.90

17.57

FCF Yield

Median3y

13.62

Median5y

12.80

Competitors Valuation Multiple

The average P/S ratio for WU's competitors is 2.97, providing a benchmark for relative valuation. Western Union Co Corp (WU) exhibits a P/S ratio of 0.64, which is -78.47% above the industry average. Given its robust revenue growth of -3.78%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Banc of California Inc

Seacoast Banking Corporation of Florida

First Financial Bancorp

Performance Decomposition

Market capitalization of WU decreased by 27.23% over the past 1 year. The primary factor behind the change was an decrease in Revenue Growth from 1.07B to 1.03B.

The secondary factor is the Margin Expansion, contributed -9.98%to the performance.

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

-3.78%

1.07B → 1.03B

Revenue Growth

-9.98%

13.22 → 11.90

Margin Expansion

-13.47%

3.54 → 3.07

P/E Change

-27.23%