Wendys Valuation
| WEN Stock | USD 18.36 0.17 0.92% |
At this time, the company appears to be undervalued. The Wendys maintains a prevalent Real Value of $21.33 per share. The last-minute price of the company is $18.36. Our model calculates the value of The Wendys from examining the company fundamentals such as Current Valuation of 7.36 B, return on asset of 0.0434, and Profit Margin of 0.09 % as well as analyzing its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Wendys' valuation include:
Price Book 14.4027 | Enterprise Value 7.4 B | Enterprise Value Ebitda 13.3174 | Price Sales 1.7069 | Forward PE 17.2414 |
Undervalued
Today
Please note that Wendys' price fluctuation is very steady at this time. Calculation of the real value of The Wendys is based on 3 months time horizon. Increasing Wendys' time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Since Wendys is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Wendys Stock. However, Wendys' intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 18.36 | Real 21.33 | Target 24.22 | Hype 18.38 | Naive 19.49 |
The intrinsic value of Wendys' stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Wendys' stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of The Wendys Co helps investors to forecast how Wendys stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Wendys more accurately as focusing exclusively on Wendys' fundamentals will not take into account other important factors: Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Wendys' intrinsic value based on its ongoing forecasts of Wendys' financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Wendys' closest peers.
Wendys Cash |
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Wendys Valuation Trend
Knowing Wendys' actual value is paramount for traders when making sound investment determinations. Using both Wendys' enterprise value as well as its market capitalization is the best way to estimate the value of the company and is usually enough for investors to make market timing decisions.
Wendys Revenue by Product
Wendys Total Value Analysis
The Wendys Co is at this time forecasted to have company total value of 7.36 B with market capitalization of 3.78 B, debt of 4.14 B, and cash on hands of 700.81 M. Please note that company total value may be misleading and is a subject to accounting gimmicks. We encourage investors to carefully check all of the Wendys fundamentals before making security assessment based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
7.36 B | 3.78 B | 4.14 B | 700.81 M |
Wendys Investor Information
About 89.0% of the company outstanding shares are owned by institutional investors. The company has Price/Earnings To Growth (PEG) ratio of 1.85. The Wendys last dividend was issued on the 2nd of December 2024. The entity had 105:100 split on the 25th of March 1986. Based on the key indicators related to Wendys' liquidity, profitability, solvency, and operating efficiency, The Wendys Co is performing exceptionally good at the present time. It has a great chance to report excellent financial results in January.| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Total Cash From Operating Activities | 362.7 M | 345.4 M |
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| Operating Income | 401.1 M | 382 M |
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Wendys Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Wendys has an asset utilization ratio of 42.09 percent. This suggests that the Company is making $0.42 for each dollar of assets. An increasing asset utilization means that The Wendys Co is more efficient with each dollar of assets it utilizes for everyday operations.Wendys Ownership Allocation
The majority of Wendys outstanding shares are owned by institutional investors. These institutions are usually referred to as non-private investors looking to purchase positions in The Wendys to benefit from reduced commissions. Consequently, other corporate entities are subject to a different set of regulations than regular investors in The Wendys Co. Please pay attention to any change in the institutional holdings of The Wendys as this could imply that something significant has changed or is about to change at the company.Wendys Profitability Analysis
The company reported the last year's revenue of 2.18 B. Total Income to common stockholders was 204.44 M with profit before taxes, overhead, and interest of 720.76 M.Wendys Past Distributions to stockholders
About Wendys Valuation
We use absolute and relative valuation methodologies to arrive at the intrinsic value of The Wendys Co. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of The Wendys based exclusively on its fundamental and basic technical indicators. By analyzing Wendys's financials, quarterly and monthly indicators, and their related drivers, we attempt to find the most accurate representation of Wendys's intrinsic value. As compared to an absolute model, our relative valuation model uses a comparative analysis of Wendys. We calculate exposure to Wendys's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Wendys's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 776.5 M | 492.7 M | |
| Pretax Profit Margin | 0.13 | 0.13 | |
| Operating Profit Margin | 0.18 | 0.18 | |
| Net Profit Margin | 0.09 | 0.19 | |
| Gross Profit Margin | 0.36 | 0.29 |
A single share of Wendys represents a small ownership stake in the entity. As a stockholder of Wendys, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.
Wendys Dividends Analysis For Valuation
As of the 1st of December 2024, Dividends Paid is likely to grow to about 219.7 M, while Dividend Yield is likely to drop 0.03. . At this time, Wendys' Retained Earnings are very stable compared to the past year. As of the 1st of December 2024, Retained Earnings Total Equity is likely to grow to about 500.8 M, while Earnings Yield is likely to drop 0.03.
| Last Reported | Projected for Next Year | ||
| Dividends Paid | 209.3 M | 219.7 M | |
| Dividend Yield | 0.05 | 0.03 | |
| Dividend Payout Ratio | 1.02 | 0.62 | |
| Dividend Paid And Capex Coverage Ratio | 1.17 | 1.12 |
There are various types of dividends Wendys can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Wendys shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from The Wendys Co directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Wendys pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Wendys by the value of the dividends paid out.
Wendys Growth Indicators
Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines.
| Common Stock Shares Outstanding | 211.5 M | |
| Quarterly Earnings Growth Y O Y | -0.111 | |
| Forward Price Earnings | 17.2414 |
Wendys Current Valuation Indicators
Wendys' valuation analysis is a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Wendys' valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Wendys, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Wendys' valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Wendys' worth.When determining whether The Wendys offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Wendys' financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of The Wendys Co Stock. Outlined below are crucial reports that will aid in making a well-informed decision on The Wendys Co Stock: Check out Your Current Watchlist to better understand how to build diversified portfolios, which includes a position in The Wendys Co. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in income. You can also try the Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Is Hotels, Restaurants & Leisure space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Wendys. If investors know Wendys will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Wendys listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.11) | Dividend Share 1 | Earnings Share 0.94 | Revenue Per Share 10.801 | Quarterly Revenue Growth 0.029 |
The market value of The Wendys is measured differently than its book value, which is the value of Wendys that is recorded on the company's balance sheet. Investors also form their own opinion of Wendys' value that differs from its market value or its book value, called intrinsic value, which is Wendys' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Wendys' market value can be influenced by many factors that don't directly affect Wendys' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Wendys' value and its price as these two are different measures arrived at by different means. Investors typically determine if Wendys is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Wendys' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.