Wendys Stock Valuation

WEN
 Stock
  

USD 22.56  0.45  1.96%   

What is the current enterprise value of The Wendys? Calculating the true value of any business is not as easy as it may seem. While the market cap of a public entity, such as Wendys, is its stock price multiplied by the total number of shares outstanding, calculating Wendys' enterprise value requires a different approach. It uses Wendys' balance sheet items such as long-term debt, the book value of the preferred stock, minority interest, and other important financials.
Wendys Free Cash Flow is quite stable at the moment as compared to the past year. The company's current value of Free Cash Flow is estimated at 506.63 Million. Tangible Asset Value is expected to rise to about 1.2 B this year, although Enterprise Value will most likely fall to about 2.2 B.
The Wendys maintains a prevalent Real Value of $26.12 per share. The last-minute price of the company is $22.56. At this time, the company appears to be undervalued. Our model calculates the value of The Wendys from examining the company fundamentals such as Return On Asset of 0.038 %, current valuation of 8.34 B, and Profit Margin of 0.12 % as well as analyzing its technical indicators and Probability Of Bankruptcy. In general, we encourage picking up undervalued securities and discarding overvalued securities since, at some point, asset prices and their ongoing real values will grow together.
  
Wendys Valuation Module provides a unique way to ballpark how much the company is worth today. It is done using both, our quantitative analysis of the company fundamentals as well as its intrinsic market price estimation to project the real value. We also take into consideration other essential factors such as Wendys's management style, its c-level domain expertise and tenure, its overall leadership history as well as current capital structure, and future earnings potential.

Wendys Most Recent Valuation Data

Dividend Share
0.5
Beta
0.9
change Receivables
-5.6 M
Fiscal Year End
December
property Plant And Equipment Net
B
Enterprise Value
8.3 B
Undervalued
Today 22.56
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.
Our valuation method for The Wendys Co is useful when determining the fair value of the Wendys stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Wendys. 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.
26.12
Real Value
27.69
Upside
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:
Earnings
Estimates (12)
LowProjected EPSHigh
0.790.810.84
Details
Hype
Prediction
LowEstimated ValueHigh
21.0122.5824.15
Details
19 Analysts
Consensus
LowTarget PriceHigh
23.0026.6631.00
Details
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. When choosing an evaluation method for The Wendys, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using both methods to arrive at a better estimate.

Wendys Investments

225.86 Million

Wendys Valuation Drivers Correlation

Many accounts on the financial statements of The Wendys are highly interrelated and sometimes correlated. Consequently, when conducting Wendys's valuation analysis, one should examine all of the accounts reported to obtain a complete picture of its financial situation. We provide a unique feature to present a conventional correlation table purposely composed against different valuation-related drivers of Wendys
Click cells to compare fundamentals

Wendys Valuation Trend

Knowing Wendys' actual value is paramount for traders to make sound investment determinations. Wendys' real value is not only important for the investor to make better decisions but also for a more accurate overall view of Wendys' financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Wendys' enterprise value as well as its market capitalization is the best way to gauging the value of the company and is usually enough for investors to make market timing descisions.

Wendys Market Cap

The Wendys Co is rated third in market capitalization category among related companies. Market capitalization of Consumer Discretionary industry is at this time estimated at about 25.45 Billion. Wendys retains roughly 4.83 Billion in market capitalization claiming about 19% of stocks in Consumer Discretionary industry.
Capitalization  Revenue  Workforce  Total debt  Valuation

Wendys Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Wendys's current stock value. Our valuation model uses many indicators to compare Wendys value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Wendys competition to find correlations between indicators driving Wendys's intrinsic value. More Info.
The Wendys Co is rated third in price to earning category among related companies. It is rated second in price to book category among related companies fabricating about  0.25  of Price to Book per Price to Earning. The ratio of Price to Earning to Price to Book for The Wendys Co is roughly  3.95 . Price to Book Value is expected to rise to 5.02 this year. Comparative valuation analysis is a catch-all model that can be used if you cannot value Wendys by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Wendys' Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Wendys' earnings, one of the primary drivers of an investment's value.
Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Wendys' worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Wendys and how it compares across the competition.

About Wendys Valuation

The stock valuation mechanism determines the current worth of The Wendys Co on a weekly basis. We use both absolute as well as 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 its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Wendys's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. 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, relevant financial multiples and ratios, and then comparing them to Wendys's related companies.
Fiscal Year End
December
Industry
Restaurants
Concentration
Restaurants
Full Time Employees
4.8 K
Service Category
Hotels, Restaurants & Leisure
Employer Id Number
38-0471180
Last ReportedProjected for 2022
Gross Profit315.7 M343.9 M
Profit Margin 10.56  13.91 
Wendys' stock price is the clearest measure of market expectations about its performance. Without stock valuation, investors cannot independently discern whether Wendys' value is low or high relative to the company's performance and growth projections. Determining the market value of Wendys can be done in different ways, such as multiplying its stock price by its outstanding shares.
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

Wendys Dividend Yield is quite stable at the moment as compared to the past year. The company's current value of Dividend Yield is estimated at 0.07. Dividends per Basic Common Share is expected to rise to 1.86 this year, although the value of Payment of Dividends and Other Cash Distributions will most likely fall to (86.9 M). . Accumulated Retained Earnings Deficit is expected to rise to about 230.4 M this year, although the value of Earning Before Interest and Taxes EBIT will most likely fall to about 78.3 M.
Last ReportedProjected for 2022
Payment of Dividends and Other Cash Distributions-80.5 M-86.9 M
Dividend Yield 0.07  0.07 
Dividends per Basic Common Share 1.56  1.86 
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 Valuation Growth Rates

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. Note, investing in growth stocks can be very risky. If the company such as Wendys does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
Quarterly Earnings Growth Y O Y0.319

Wendys Current Valuation Indicators

Valuation refers to the process of determining the present value of The Wendys Co and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Wendys we look at many different elements of the entity such as Wendys's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Wendys' valuation analysis is also 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.
Check out Your Current Watchlist. Note that the The Wendys information on this page should be used as a complementary analysis to other Wendys' statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Money Managers module to screen money managers from public funds and ETFs managed around the world.

Complementary Tools for Wendys Stock analysis

When running The Wendys price analysis, check to measure Wendys' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Wendys is operating at the current time. Most of Wendys' value examination focuses on studying past and present price action to predict the probability of Wendys' future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Wendys' price. Additionally, you may evaluate how the addition of Wendys to your portfolios can decrease your overall portfolio volatility.
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Is Wendys' industry 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 YOY
0.32
Market Capitalization
4.8 B
Quarterly Revenue Growth YOY
0.15
Return On Assets
0.038
Return On Equity
0.38
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 Wendys value 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.