Intrinsic value of WEX - WEX

Previous Close

$183.52

  Intrinsic Value

$0.00

stock screener

  Rating & Target

str. sell

-100%

Previous close

$183.52

 
Intrinsic value

$0.00

 
Up/down potential

-100%

 
Rating

str. sell

We calculate the intrinsic value of WEX stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Revenue (in 2017), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 7.9

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
   2018
   2019
   2020
   2021
   2022
   2023
   2024
   2025
   2026
   2027
   2028
   2029
   2030
   2031
   2032
   2033
   2034
   2035
   2036
   2037
   2038
   2039
   2040
   2041
   2042
   2043
   2044
   2045
   2046
   2047

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  22.80
  21.02
  19.42
  17.98
  16.68
  15.51
  14.46
  13.51
  12.66
  11.90
  11.21
  10.59
  10.03
  9.52
  9.07
  8.66
  8.30
  7.97
  7.67
  7.40
  7.16
  6.95
  6.75
  6.58
  6.42
  6.28
  6.15
  6.04
  5.93
  5.84
Revenue, $m
  1,536
  1,859
  2,220
  2,619
  3,056
  3,530
  4,041
  4,587
  5,167
  5,782
  6,430
  7,111
  7,824
  8,569
  9,346
  10,156
  10,999
  11,875
  12,786
  13,733
  14,717
  15,740
  16,802
  17,908
  19,057
  20,254
  21,499
  22,797
  24,149
  25,559
Variable operating expenses, $m
  1,100
  1,314
  1,553
  1,818
  2,108
  2,422
  2,761
  3,123
  3,508
  3,916
  4,264
  4,716
  5,188
  5,683
  6,198
  6,735
  7,294
  7,875
  8,480
  9,107
  9,760
  10,438
  11,143
  11,876
  12,638
  13,432
  14,258
  15,118
  16,015
  16,950
Fixed operating expenses, $m
  38
  39
  39
  40
  41
  42
  43
  44
  45
  46
  47
  48
  49
  50
  51
  52
  54
  55
  56
  57
  58
  60
  61
  62
  64
  65
  67
  68
  70
  71
Total operating expenses, $m
  1,138
  1,353
  1,592
  1,858
  2,149
  2,464
  2,804
  3,167
  3,553
  3,962
  4,311
  4,764
  5,237
  5,733
  6,249
  6,787
  7,348
  7,930
  8,536
  9,164
  9,818
  10,498
  11,204
  11,938
  12,702
  13,497
  14,325
  15,186
  16,085
  17,021
Operating income, $m
  399
  506
  627
  761
  907
  1,066
  1,237
  1,420
  1,614
  1,820
  2,119
  2,347
  2,586
  2,836
  3,097
  3,368
  3,651
  3,945
  4,251
  4,569
  4,899
  5,242
  5,598
  5,969
  6,355
  6,757
  7,175
  7,611
  8,065
  8,538
EBITDA, $m
  1,350
  1,640
  1,966
  2,325
  2,719
  3,146
  3,606
  4,098
  4,622
  5,176
  5,760
  6,374
  7,017
  7,689
  8,390
  9,120
  9,880
  10,670
  11,492
  12,346
  13,233
  14,155
  15,114
  16,110
  17,147
  18,226
  19,350
  20,520
  21,740
  23,012
Interest expense (income), $m
  116
  641
  894
  2,581
  4,466
  6,551
  8,833
  11,308
  13,975
  16,827
  19,860
  23,071
  26,455
  30,010
  33,735
  37,627
  41,687
  45,917
  50,319
  54,897
  59,656
  64,601
  69,740
  75,080
  80,632
  86,404
  92,409
  98,658
  105,164
  111,941
  119,004
Earnings before tax, $m
  -242
  -387
  -1,953
  -3,705
  -5,644
  -7,767
  -10,072
  -12,555
  -15,212
  -18,040
  -20,952
  -24,108
  -27,424
  -30,899
  -34,530
  -38,319
  -42,266
  -46,374
  -50,646
  -55,087
  -59,702
  -64,498
  -69,482
  -74,662
  -80,049
  -85,652
  -91,483
  -97,554
  -103,877
  -110,466
Tax expense, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Net income, $m
  -242
  -387
  -1,953
  -3,705
  -5,644
  -7,767
  -10,072
  -12,555
  -15,212
  -18,040
  -20,952
  -24,108
  -27,424
  -30,899
  -34,530
  -38,319
  -42,266
  -46,374
  -50,646
  -55,087
  -59,702
  -64,498
  -69,482
  -74,662
  -80,049
  -85,652
  -91,483
  -97,554
  -103,877
  -110,466

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  1,589
  1,923
  2,296
  2,709
  3,160
  3,651
  4,178
  4,743
  5,344
  5,979
  6,649
  7,353
  8,091
  8,861
  9,665
  10,503
  11,374
  12,281
  13,223
  14,202
  15,219
  16,277
  17,376
  18,519
  19,708
  20,945
  22,233
  23,575
  24,973
  26,431
Adjusted assets (=assets-cash), $m
  1,589
  1,923
  2,296
  2,709
  3,160
  3,651
  4,178
  4,743
  5,344
  5,979
  6,649
  7,353
  8,091
  8,861
  9,665
  10,503
  11,374
  12,281
  13,223
  14,202
  15,219
  16,277
  17,376
  18,519
  19,708
  20,945
  22,233
  23,575
  24,973
  26,431
Revenue / Adjusted assets
  0.967
  0.967
  0.967
  0.967
  0.967
  0.967
  0.967
  0.967
  0.967
  0.967
  0.967
  0.967
  0.967
  0.967
  0.967
  0.967
  0.967
  0.967
  0.967
  0.967
  0.967
  0.967
  0.967
  0.967
  0.967
  0.967
  0.967
  0.967
  0.967
  0.967
Average production assets, $m
  8,700
  10,528
  12,573
  14,833
  17,307
  19,991
  22,882
  25,974
  29,263
  32,744
  36,413
  40,268
  44,306
  48,526
  52,928
  57,514
  62,287
  67,250
  72,410
  77,771
  83,343
  89,133
  95,152
  101,411
  107,921
  114,696
  121,750
  129,098
  136,756
  144,740
Working capital, $m
  -2,443
  -2,956
  -3,530
  -4,165
  -4,859
  -5,613
  -6,425
  -7,293
  -8,216
  -9,194
  -10,224
  -11,306
  -12,440
  -13,625
  -14,861
  -16,148
  -17,488
  -18,882
  -20,330
  -21,836
  -23,400
  -25,026
  -26,716
  -28,473
  -30,301
  -32,203
  -34,184
  -36,247
  -38,397
  -40,639
Total debt, $m
  159
  460
  796
  1,167
  1,574
  2,015
  2,490
  2,998
  3,539
  4,111
  4,714
  5,348
  6,011
  6,705
  7,428
  8,182
  8,966
  9,782
  10,630
  11,511
  12,427
  13,379
  14,368
  15,396
  16,466
  17,580
  18,739
  19,947
  21,205
  22,517
Total liabilities, $m
  1,430
  1,730
  2,066
  2,438
  2,844
  3,286
  3,761
  4,269
  4,809
  5,381
  5,985
  6,618
  7,282
  7,975
  8,699
  9,452
  10,237
  11,053
  11,901
  12,782
  13,697
  14,649
  15,638
  16,667
  17,737
  18,850
  20,010
  21,217
  22,476
  23,788
Total equity, $m
  159
  192
  230
  271
  316
  365
  418
  474
  534
  598
  665
  735
  809
  886
  967
  1,050
  1,137
  1,228
  1,322
  1,420
  1,522
  1,628
  1,738
  1,852
  1,971
  2,094
  2,223
  2,357
  2,497
  2,643
Total liabilities and equity, $m
  1,589
  1,922
  2,296
  2,709
  3,160
  3,651
  4,179
  4,743
  5,343
  5,979
  6,650
  7,353
  8,091
  8,861
  9,666
  10,502
  11,374
  12,281
  13,223
  14,202
  15,219
  16,277
  17,376
  18,519
  19,708
  20,944
  22,233
  23,574
  24,973
  26,431
Debt-to-equity ratio
  1.000
  2.390
  3.470
  4.310
  4.980
  5.520
  5.960
  6.320
  6.620
  6.880
  7.090
  7.270
  7.430
  7.570
  7.690
  7.790
  7.880
  7.970
  8.040
  8.110
  8.170
  8.220
  8.270
  8.310
  8.360
  8.390
  8.430
  8.460
  8.490
  8.520
Adjusted equity ratio
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  -242
  -387
  -1,953
  -3,705
  -5,644
  -7,767
  -10,072
  -12,555
  -15,212
  -18,040
  -20,952
  -24,108
  -27,424
  -30,899
  -34,530
  -38,319
  -42,266
  -46,374
  -50,646
  -55,087
  -59,702
  -64,498
  -69,482
  -74,662
  -80,049
  -85,652
  -91,483
  -97,554
  -103,877
  -110,466
Depreciation, amort., depletion, $m
  951
  1,134
  1,338
  1,564
  1,812
  2,080
  2,369
  2,678
  3,007
  3,355
  3,641
  4,027
  4,431
  4,853
  5,293
  5,751
  6,229
  6,725
  7,241
  7,777
  8,334
  8,913
  9,515
  10,141
  10,792
  11,470
  12,175
  12,910
  13,676
  14,474
Funds from operations, $m
  709
  746
  -615
  -2,141
  -3,832
  -5,687
  -7,702
  -9,876
  -12,205
  -14,684
  -17,311
  -20,081
  -22,994
  -26,046
  -29,237
  -32,567
  -36,037
  -39,649
  -43,405
  -47,310
  -51,368
  -55,584
  -59,967
  -64,521
  -69,257
  -74,183
  -79,308
  -84,644
  -90,201
  -95,992
Change in working capital, $m
  -454
  -513
  -574
  -635
  -695
  -754
  -812
  -868
  -923
  -977
  -1,030
  -1,082
  -1,134
  -1,185
  -1,236
  -1,288
  -1,340
  -1,394
  -1,449
  -1,505
  -1,564
  -1,626
  -1,690
  -1,757
  -1,828
  -1,902
  -1,981
  -2,063
  -2,150
  -2,242
Cash from operations, $m
  1,162
  1,260
  -41
  -1,506
  -3,137
  -4,933
  -6,891
  -9,008
  -11,281
  -13,707
  -16,280
  -18,999
  -21,860
  -24,861
  -28,001
  -31,280
  -34,697
  -38,255
  -41,957
  -45,805
  -49,803
  -53,959
  -58,277
  -62,764
  -67,429
  -72,280
  -77,328
  -82,581
  -88,051
  -93,750
Maintenance CAPEX, $m
  -708
  -870
  -1,053
  -1,257
  -1,483
  -1,731
  -1,999
  -2,288
  -2,597
  -2,926
  -3,274
  -3,641
  -4,027
  -4,431
  -4,853
  -5,293
  -5,751
  -6,229
  -6,725
  -7,241
  -7,777
  -8,334
  -8,913
  -9,515
  -10,141
  -10,792
  -11,470
  -12,175
  -12,910
  -13,676
New CAPEX, $m
  -1,617
  -1,829
  -2,044
  -2,260
  -2,474
  -2,684
  -2,891
  -3,092
  -3,289
  -3,481
  -3,669
  -3,855
  -4,038
  -4,220
  -4,402
  -4,586
  -4,773
  -4,963
  -5,159
  -5,362
  -5,572
  -5,790
  -6,019
  -6,259
  -6,510
  -6,775
  -7,054
  -7,348
  -7,658
  -7,984
Cash from investing activities, $m
  -2,325
  -2,699
  -3,097
  -3,517
  -3,957
  -4,415
  -4,890
  -5,380
  -5,886
  -6,407
  -6,943
  -7,496
  -8,065
  -8,651
  -9,255
  -9,879
  -10,524
  -11,192
  -11,884
  -12,603
  -13,349
  -14,124
  -14,932
  -15,774
  -16,651
  -17,567
  -18,524
  -19,523
  -20,568
  -21,660
Free cash flow, $m
  -1,163
  -1,439
  -3,138
  -5,024
  -7,095
  -9,348
  -11,780
  -14,388
  -17,168
  -20,114
  -23,224
  -26,495
  -29,925
  -33,512
  -37,256
  -41,159
  -45,221
  -49,447
  -53,841
  -58,407
  -63,152
  -68,083
  -73,209
  -78,538
  -84,081
  -89,848
  -95,851
  -102,104
  -108,618
  -115,410
Issuance/(repayment) of debt, $m
  45
  301
  336
  371
  407
  441
  475
  508
  541
  572
  603
  634
  664
  694
  724
  754
  784
  816
  848
  881
  916
  952
  989
  1,029
  1,070
  1,113
  1,159
  1,208
  1,259
  1,312
Issuance/(repurchase) of shares, $m
  492
  421
  1,991
  3,747
  5,689
  7,816
  10,124
  12,611
  15,272
  18,103
  21,019
  24,179
  27,498
  30,976
  34,610
  38,402
  42,353
  46,465
  50,740
  55,185
  59,804
  64,604
  69,592
  74,777
  80,168
  85,776
  91,612
  97,688
  104,016
  110,612
Cash from financing (excl. dividends), $m  
  537
  722
  2,327
  4,118
  6,096
  8,257
  10,599
  13,119
  15,813
  18,675
  21,622
  24,813
  28,162
  31,670
  35,334
  39,156
  43,137
  47,281
  51,588
  56,066
  60,720
  65,556
  70,581
  75,806
  81,238
  86,889
  92,771
  98,896
  105,275
  111,924
Total cash flow (excl. dividends), $m
  -626
  -717
  -812
  -906
  -999
  -1,091
  -1,181
  -1,269
  -1,355
  -1,439
  -1,602
  -1,683
  -1,763
  -1,842
  -1,922
  -2,002
  -2,084
  -2,167
  -2,253
  -2,341
  -2,433
  -2,528
  -2,628
  -2,733
  -2,843
  -2,958
  -3,080
  -3,208
  -3,343
  -3,486
Retained Cash Flow (-), $m
  -492
  -421
  -1,991
  -3,747
  -5,689
  -7,816
  -10,124
  -12,611
  -15,272
  -18,103
  -21,019
  -24,179
  -27,498
  -30,976
  -34,610
  -38,402
  -42,353
  -46,465
  -50,740
  -55,185
  -59,804
  -64,604
  -69,592
  -74,777
  -80,168
  -85,776
  -91,612
  -97,688
  -104,016
  -110,612
Prev. year cash balance distribution, $m
  91
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
  -492
  -421
  -1,991
  -3,747
  -5,689
  -7,816
  -10,124
  -12,611
  -15,272
  -18,103
  -21,019
  -24,179
  -27,498
  -30,976
  -34,610
  -38,402
  -42,353
  -46,465
  -50,740
  -55,185
  -59,804
  -64,604
  -69,592
  -74,777
  -80,168
  -85,776
  -91,612
  -97,688
  -104,016
  -110,612
Discount rate, %
  5.60
  5.88
  6.17
  6.48
  6.81
  7.15
  7.50
  7.88
  8.27
  8.69
  9.12
  9.58
  10.06
  10.56
  11.09
  11.64
  12.22
  12.84
  13.48
  14.15
  14.86
  15.60
  16.38
  17.20
  18.06
  18.96
  19.91
  20.91
  21.95
  23.05
PV of cash for distribution, $m
  -466
  -375
  -1,663
  -2,914
  -4,093
  -5,165
  -6,101
  -6,874
  -7,468
  -7,870
  -8,046
  -8,068
  -7,912
  -7,597
  -7,149
  -6,594
  -5,962
  -5,286
  -4,593
  -3,910
  -3,261
  -2,661
  -2,124
  -1,658
  -1,263
  -939
  -680
  -480
  -329
  -219
Current shareholders' claim on cash, %
  50.0
  13.7
  1.2
  0.1
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0

WEX Inc. is a provider of corporate payment solutions. The Company operates through three segments: Fleet Solutions, Travel and Corporate Solutions, and Health and Employee Benefit Solutions. The Fleet Solutions segment provides customers with payment and transaction processing services designed for the needs of commercial and government fleets. The Travel and Corporate Solutions segment focuses on the complex payment environment of business-to-business payments, providing customers with payment processing solutions for their corporate payment and transaction monitoring needs. The Health and Employee Benefit Solutions segment provides healthcare payment products and software as a service consumer directed platforms, as well as payroll related benefits to customers in Brazil. The United States operations include the Company and its subsidiaries WEX Bank, WEX FleetOne, Electronic Funds Source LLC and WEX Health.

FINANCIAL RATIOS  of  WEX (WEX)

Valuation Ratios
P/E Ratio 128.9
Price to Sales 7.7
Price to Book 5.3
Price to Tangible Book
Price to Cash Flow -52.1
Price to Free Cash Flow -36.2
Growth Rates
Sales Growth Rate 19.1%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 4.8%
Cap. Spend. - 3 Yr. Gr. Rate 11.1%
Financial Strength
Quick Ratio NaN
Current Ratio NaN
LT Debt to Equity 147.3%
Total Debt to Equity 147.3%
Interest Coverage 2
Management Effectiveness
Return On Assets 2.8%
Ret/ On Assets - 3 Yr. Avg. 4%
Return On Total Capital 2%
Ret/ On T. Cap. - 3 Yr. Avg. 5.5%
Return On Equity 4.7%
Return On Equity - 3 Yr. Avg. 11.6%
Asset Turnover 0.2
Profitability Ratios
Gross Margin 51.7%
Gross Margin - 3 Yr. Avg. 54%
EBITDA Margin 33.9%
EBITDA Margin - 3 Yr. Avg. 40.6%
Operating Margin 19.2%
Oper. Margin - 3 Yr. Avg. 27.8%
Pre-Tax Margin 8.5%
Pre-Tax Margin - 3 Yr. Avg. 22.4%
Net Profit Margin 6%
Net Profit Margin - 3 Yr. Avg. 14.2%
Effective Tax Rate 34.5%
Eff/ Tax Rate - 3 Yr. Avg. 36.3%
Payout Ratio 0%

WEX stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the WEX stock intrinsic value calculation we used $1251 million for the last fiscal year's total revenue generated by WEX. The default revenue input number comes from 2017 income statement of WEX. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our WEX stock valuation model: a) initial revenue growth rate of 22.8% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 5.6%, whose default value for WEX is calculated based on our internal credit rating of WEX, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of WEX.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of WEX stock the variable cost ratio is equal to 72.8%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $37 million in the base year in the intrinsic value calculation for WEX stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 561.2% for WEX.

Corporate tax rate of 27% is the nominal tax rate for WEX. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the WEX stock is equal to 2.4%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for WEX are equal to 566.3%.

Life of production assets of 10 years is the average useful life of capital assets used in WEX operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for WEX is equal to -159%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $0 million for WEX - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 43 million for WEX is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of WEX at the current share price and the inputted number of shares is $7.9 billion.

RELATED COMPANIES Price Int.Val. Rating
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FLT FleetCor Techn 215.20 512.81  str.buy
FIS Fidelity Natio 106.69 58.64  sell
GPN Global Payment 118.35 207.67  str.buy
CASS Cass Informati 70.38 7.40  str.sell

COMPANY NEWS

▶ WEX Sees Hammer Chart Pattern: Time to Buy?   [Aug-06-18 05:55AM  Zacks]
▶ Wex: 2Q Earnings Snapshot   [08:48AM  Associated Press]
▶ WEX Inc. to Host Earnings Call   [07:00AM  ACCESSWIRE]
▶ WEX Evolves Fuel Payments from Plastic to Phone   [Jun-18-18 04:45PM  Business Wire]
▶ Top Ranked Momentum Stocks to Buy for May 30th   [May-30-18 09:28AM  Zacks]
▶ Top Ranked Momentum Stocks to Buy for May 3rd   [May-03-18 10:35AM  Zacks]
▶ Wex: 1Q Earnings Snapshot   [07:16AM  Associated Press]
▶ Top Ranked Momentum Stocks to Buy for May 2nd   [May-02-18 10:49AM  Zacks]
▶ WEX Health to Host 11th Annual Go-To Industry Event   [Apr-23-18 06:30AM  Business Wire]
▶ WEX Inc. and Mike Albert Fleet Solutions Extend Partnership   [Apr-10-18 06:30AM  Business Wire]
▶ WEX Inc. Hires New European Managing Director   [Apr-05-18 03:00AM  Business Wire]
▶ WEX Health Strengthens Position as an Industry Leader   [Feb-26-18 02:04PM  Business Wire]
▶ KLLM/FFE Moves Payments Business to EFS   [Feb-22-18 06:30AM  Business Wire]
▶ WEX Inc. to Host Earnings Call   [Feb-21-18 06:50AM  ACCESSWIRE]
▶ WEX Inc. Completes Term Loan Repricing   [Jan-17-18 04:24PM  Business Wire]
▶ WEX Inc. Announces Plans for Potential Debt Repricing   [Jan-05-18 06:30AM  Business Wire]
▶ Stocks With Rising Composite Ratings: WEX   [Dec-26-17 03:00AM  Investor's Business Daily]
▶ WEX Clears Technical Benchmark, Hitting 80-Plus RS Rating   [Dec-06-17 03:00AM  Investor's Business Daily]
▶ WEX Announces Fleet Card Contract with Verizon   [Dec-05-17 06:30AM  Business Wire]
▶ Stocks To Watch: WEX Sees Relative Strength Rating Jump To 82   [Nov-08-17 03:00AM  Investor's Business Daily]
▶ Wex tops Street 3Q forecasts   [Nov-01-17 06:49AM  Associated Press]
▶ WEX Getting Closer To Key Technical Measure   [03:00AM  Investor's Business Daily]
▶ 2 U.S. Picks As Europe Outsources Gasoline Cards   [Oct-10-17 06:40PM  Barrons.com]
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