Intrinsic value of WEX - WEX

Previous Close

$120.25

  Intrinsic Value

$317.62

stock screener

  Rating & Target

str. buy

+164%

  Value-price divergence*

-40%

Previous close

$120.25

 
Intrinsic value

$317.62

 
Up/down potential

+164%

 
Rating

str. buy

 
Value-price divergence*

-40%

*Intrinsic value change (in %) minus stock price change (in %) in the past 12 months.

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 2016), $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 5.2

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
2016(a)
   2017
   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

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  19.06
  29.90
  27.41
  25.17
  23.15
  21.34
  19.70
  18.23
  16.91
  15.72
  14.65
  13.68
  12.81
  12.03
  11.33
  10.70
  10.13
  9.61
  9.15
  8.74
  8.36
  8.03
  7.72
  7.45
  7.21
  6.99
  6.79
  6.61
  6.45
  6.30
  6.17
Revenue, $m
  1,018
  1,322
  1,685
  2,109
  2,597
  3,151
  3,772
  4,460
  5,214
  6,034
  6,918
  7,864
  8,872
  9,939
  11,065
  12,249
  13,489
  14,786
  16,139
  17,549
  19,017
  20,544
  22,131
  23,780
  25,494
  27,275
  29,126
  31,051
  33,053
  35,136
  37,305
Variable operating expenses, $m
 
  913
  1,113
  1,347
  1,616
  1,922
  2,264
  2,643
  3,059
  3,511
  3,998
  4,337
  4,892
  5,481
  6,102
  6,755
  7,439
  8,154
  8,900
  9,678
  10,487
  11,329
  12,204
  13,113
  14,058
  15,041
  16,062
  17,123
  18,227
  19,376
  20,572
Fixed operating expenses, $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 operating expenses, $m
  823
  913
  1,113
  1,347
  1,616
  1,922
  2,264
  2,643
  3,059
  3,511
  3,998
  4,337
  4,892
  5,481
  6,102
  6,755
  7,439
  8,154
  8,900
  9,678
  10,487
  11,329
  12,204
  13,113
  14,058
  15,041
  16,062
  17,123
  18,227
  19,376
  20,572
Operating income, $m
  195
  409
  572
  762
  981
  1,230
  1,508
  1,817
  2,155
  2,523
  2,919
  3,527
  3,979
  4,458
  4,963
  5,494
  6,051
  6,632
  7,239
  7,872
  8,530
  9,215
  9,927
  10,666
  11,435
  12,234
  13,064
  13,928
  14,826
  15,760
  16,733
EBITDA, $m
  337
  669
  852
  1,066
  1,313
  1,593
  1,907
  2,255
  2,636
  3,050
  3,497
  3,976
  4,485
  5,025
  5,594
  6,192
  6,819
  7,475
  8,159
  8,872
  9,614
  10,386
  11,188
  12,022
  12,888
  13,788
  14,724
  15,697
  16,710
  17,763
  18,859
Interest expense (income), $m
  116
  150
  242
  351
  479
  626
  793
  980
  1,187
  1,414
  1,661
  1,927
  2,212
  2,516
  2,837
  3,176
  3,533
  3,906
  4,297
  4,704
  5,129
  5,571
  6,031
  6,508
  7,005
  7,521
  8,058
  8,615
  9,195
  9,798
  10,425
Earnings before tax, $m
  87
  259
  330
  411
  502
  604
  715
  837
  968
  1,108
  1,258
  1,600
  1,767
  1,943
  2,126
  2,318
  2,518
  2,726
  2,943
  3,168
  3,401
  3,644
  3,896
  4,158
  4,430
  4,713
  5,007
  5,313
  5,631
  5,963
  6,308
Tax expense, $m
  30
  70
  89
  111
  136
  163
  193
  226
  261
  299
  340
  432
  477
  525
  574
  626
  680
  736
  795
  855
  918
  984
  1,052
  1,123
  1,196
  1,272
  1,352
  1,434
  1,520
  1,610
  1,703
Net income, $m
  61
  189
  241
  300
  367
  441
  522
  611
  707
  809
  918
  1,168
  1,290
  1,418
  1,552
  1,692
  1,838
  1,990
  2,148
  2,312
  2,483
  2,660
  2,844
  3,035
  3,234
  3,440
  3,655
  3,878
  4,111
  4,353
  4,605

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  191
  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
  5,997
  7,556
  9,628
  12,051
  14,841
  18,008
  21,556
  25,486
  29,795
  34,479
  39,529
  44,937
  50,695
  56,795
  63,230
  69,993
  77,081
  84,491
  92,225
  100,283
  108,670
  117,393
  126,461
  135,885
  145,678
  155,856
  166,434
  177,434
  188,875
  200,780
  213,173
Adjusted assets (=assets-cash), $m
  5,806
  7,556
  9,628
  12,051
  14,841
  18,008
  21,556
  25,486
  29,795
  34,479
  39,529
  44,937
  50,695
  56,795
  63,230
  69,993
  77,081
  84,491
  92,225
  100,283
  108,670
  117,393
  126,461
  135,885
  145,678
  155,856
  166,434
  177,434
  188,875
  200,780
  213,173
Revenue / Adjusted assets
  0.175
  0.175
  0.175
  0.175
  0.175
  0.175
  0.175
  0.175
  0.175
  0.175
  0.175
  0.175
  0.175
  0.175
  0.175
  0.175
  0.175
  0.175
  0.175
  0.175
  0.175
  0.175
  0.175
  0.175
  0.175
  0.175
  0.175
  0.175
  0.175
  0.175
  0.175
Average production assets, $m
  1,022
  1,326
  1,690
  2,115
  2,605
  3,161
  3,784
  4,473
  5,230
  6,052
  6,938
  7,888
  8,898
  9,969
  11,098
  12,286
  13,530
  14,830
  16,188
  17,602
  19,074
  20,605
  22,197
  23,851
  25,570
  27,357
  29,213
  31,144
  33,152
  35,242
  37,417
Working capital, $m
  0
  -249
  -317
  -396
  -488
  -592
  -709
  -838
  -980
  -1,134
  -1,300
  -1,478
  -1,668
  -1,869
  -2,080
  -2,303
  -2,536
  -2,780
  -3,034
  -3,299
  -3,575
  -3,862
  -4,161
  -4,471
  -4,793
  -5,128
  -5,476
  -5,838
  -6,214
  -6,606
  -7,013
Total debt, $m
  2,205
  3,561
  5,166
  7,044
  9,207
  11,661
  14,411
  17,456
  20,796
  24,426
  28,340
  32,531
  36,994
  41,721
  46,708
  51,950
  57,443
  63,186
  69,179
  75,424
  81,924
  88,685
  95,712
  103,016
  110,606
  118,493
  126,692
  135,216
  144,083
  153,309
  162,914
Total liabilities, $m
  4,500
  5,856
  7,461
  9,339
  11,502
  13,956
  16,706
  19,751
  23,091
  26,721
  30,635
  34,826
  39,289
  44,016
  49,003
  54,245
  59,738
  65,481
  71,474
  77,719
  84,219
  90,980
  98,007
  105,311
  112,901
  120,788
  128,987
  137,511
  146,378
  155,604
  165,209
Total equity, $m
  1,497
  1,700
  2,166
  2,711
  3,339
  4,052
  4,850
  5,734
  6,704
  7,758
  8,894
  10,111
  11,406
  12,779
  14,227
  15,748
  17,343
  19,011
  20,751
  22,564
  24,451
  26,413
  28,454
  30,574
  32,778
  35,068
  37,448
  39,923
  42,497
  45,175
  47,964
Total liabilities and equity, $m
  5,997
  7,556
  9,627
  12,050
  14,841
  18,008
  21,556
  25,485
  29,795
  34,479
  39,529
  44,937
  50,695
  56,795
  63,230
  69,993
  77,081
  84,492
  92,225
  100,283
  108,670
  117,393
  126,461
  135,885
  145,679
  155,856
  166,435
  177,434
  188,875
  200,779
  213,173
Debt-to-equity ratio
  1.473
  2.090
  2.390
  2.600
  2.760
  2.880
  2.970
  3.040
  3.100
  3.150
  3.190
  3.220
  3.240
  3.260
  3.280
  3.300
  3.310
  3.320
  3.330
  3.340
  3.350
  3.360
  3.360
  3.370
  3.370
  3.380
  3.380
  3.390
  3.390
  3.390
  3.400
Adjusted equity ratio
  0.225
  0.225
  0.225
  0.225
  0.225
  0.225
  0.225
  0.225
  0.225
  0.225
  0.225
  0.225
  0.225
  0.225
  0.225
  0.225
  0.225
  0.225
  0.225
  0.225
  0.225
  0.225
  0.225
  0.225
  0.225
  0.225
  0.225
  0.225
  0.225
  0.225
  0.225

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  61
  189
  241
  300
  367
  441
  522
  611
  707
  809
  918
  1,168
  1,290
  1,418
  1,552
  1,692
  1,838
  1,990
  2,148
  2,312
  2,483
  2,660
  2,844
  3,035
  3,234
  3,440
  3,655
  3,878
  4,111
  4,353
  4,605
Depreciation, amort., depletion, $m
  142
  259
  280
  304
  332
  363
  399
  438
  481
  528
  578
  448
  506
  566
  631
  698
  769
  843
  920
  1,000
  1,084
  1,171
  1,261
  1,355
  1,453
  1,554
  1,660
  1,770
  1,884
  2,002
  2,126
Funds from operations, $m
  -593
  449
  521
  604
  698
  804
  921
  1,049
  1,188
  1,337
  1,496
  1,616
  1,796
  1,985
  2,183
  2,390
  2,607
  2,833
  3,068
  3,312
  3,567
  3,831
  4,105
  4,391
  4,687
  4,995
  5,315
  5,648
  5,994
  6,355
  6,731
Change in working capital, $m
  -442
  -57
  -68
  -80
  -92
  -104
  -117
  -129
  -142
  -154
  -166
  -178
  -189
  -201
  -212
  -223
  -233
  -244
  -254
  -265
  -276
  -287
  -298
  -310
  -322
  -335
  -348
  -362
  -376
  -392
  -408
Cash from operations, $m
  -151
  506
  589
  684
  790
  908
  1,038
  1,178
  1,329
  1,491
  1,663
  1,794
  1,985
  2,185
  2,394
  2,613
  2,840
  3,077
  3,322
  3,578
  3,843
  4,118
  4,404
  4,701
  5,009
  5,330
  5,663
  6,010
  6,371
  6,747
  7,139
Maintenance CAPEX, $m
  0
  -58
  -75
  -96
  -120
  -148
  -180
  -215
  -254
  -297
  -344
  -394
  -448
  -506
  -566
  -631
  -698
  -769
  -843
  -920
  -1,000
  -1,084
  -1,171
  -1,261
  -1,355
  -1,453
  -1,554
  -1,660
  -1,770
  -1,884
  -2,002
New CAPEX, $m
  -66
  -305
  -364
  -425
  -490
  -556
  -623
  -690
  -756
  -822
  -886
  -949
  -1,011
  -1,071
  -1,129
  -1,187
  -1,244
  -1,301
  -1,357
  -1,414
  -1,472
  -1,531
  -1,592
  -1,654
  -1,719
  -1,786
  -1,857
  -1,931
  -2,008
  -2,090
  -2,175
Cash from investing activities, $m
  -1,160
  -363
  -439
  -521
  -610
  -704
  -803
  -905
  -1,010
  -1,119
  -1,230
  -1,343
  -1,459
  -1,577
  -1,695
  -1,818
  -1,942
  -2,070
  -2,200
  -2,334
  -2,472
  -2,615
  -2,763
  -2,915
  -3,074
  -3,239
  -3,411
  -3,591
  -3,778
  -3,974
  -4,177
Free cash flow, $m
  -1,311
  143
  150
  162
  180
  204
  235
  273
  319
  372
  432
  451
  526
  609
  699
  795
  898
  1,007
  1,122
  1,243
  1,370
  1,503
  1,641
  1,785
  1,935
  2,090
  2,252
  2,419
  2,593
  2,774
  2,961
Issuance/(repayment) of debt, $m
  969
  1,356
  1,605
  1,878
  2,162
  2,454
  2,750
  3,046
  3,340
  3,630
  3,914
  4,191
  4,463
  4,727
  4,987
  5,242
  5,493
  5,743
  5,993
  6,245
  6,500
  6,760
  7,028
  7,304
  7,590
  7,887
  8,199
  8,524
  8,867
  9,226
  9,605
Issuance/(repurchase) of shares, $m
  -2
  205
  225
  245
  261
  272
  276
  273
  263
  245
  218
  49
  5
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from financing (excl. dividends), $m  
  1,216
  1,561
  1,830
  2,123
  2,423
  2,726
  3,026
  3,319
  3,603
  3,875
  4,132
  4,240
  4,468
  4,727
  4,987
  5,242
  5,493
  5,743
  5,993
  6,245
  6,500
  6,760
  7,028
  7,304
  7,590
  7,887
  8,199
  8,524
  8,867
  9,226
  9,605
Total cash flow (excl. dividends), $m
  -89
  1,704
  1,980
  2,286
  2,604
  2,930
  3,261
  3,593
  3,922
  4,246
  4,564
  4,691
  4,994
  5,336
  5,685
  6,037
  6,391
  6,750
  7,116
  7,488
  7,871
  8,264
  8,669
  9,089
  9,525
  9,978
  10,450
  10,944
  11,460
  12,000
  12,566
Retained Cash Flow (-), $m
  -414
  -394
  -466
  -545
  -628
  -712
  -798
  -884
  -970
  -1,054
  -1,136
  -1,217
  -1,296
  -1,372
  -1,448
  -1,522
  -1,595
  -1,667
  -1,740
  -1,813
  -1,887
  -1,963
  -2,040
  -2,120
  -2,203
  -2,290
  -2,380
  -2,475
  -2,574
  -2,679
  -2,789
Prev. year cash balance distribution, $m
 
  191
  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
 
  1,501
  1,514
  1,740
  1,976
  2,218
  2,463
  2,708
  2,952
  3,192
  3,428
  3,474
  3,699
  3,964
  4,238
  4,515
  4,796
  5,083
  5,376
  5,675
  5,983
  6,301
  6,629
  6,968
  7,321
  7,688
  8,070
  8,469
  8,886
  9,321
  9,778
Discount rate, %
 
  8.90
  9.35
  9.81
  10.30
  10.82
  11.36
  11.93
  12.52
  13.15
  13.81
  14.50
  15.22
  15.98
  16.78
  17.62
  18.50
  19.43
  20.40
  21.42
  22.49
  23.61
  24.80
  26.03
  27.34
  28.70
  30.14
  31.65
  33.23
  34.89
  36.63
PV of cash for distribution, $m
 
  1,378
  1,266
  1,314
  1,335
  1,327
  1,292
  1,231
  1,149
  1,050
  940
  784
  676
  577
  483
  396
  317
  249
  190
  142
  104
  73
  51
  34
  22
  14
  9
  5
  3
  2
  1
Current shareholders' claim on cash, %
  100
  95.7
  92.2
  89.3
  86.9
  85.0
  83.3
  82.0
  80.9
  80.1
  79.5
  79.3
  79.3
  79.3
  79.3
  79.3
  79.3
  79.3
  79.3
  79.3
  79.3
  79.3
  79.3
  79.3
  79.3
  79.3
  79.3
  79.3
  79.3
  79.3
  79.3

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 84.5
Price to Sales 5.1
Price to Book 3.4
Price to Tangible Book
Price to Cash Flow -34.1
Price to Free Cash Flow -23.7
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 $1018 million for the last fiscal year's total revenue generated by WEX. The default revenue input number comes from 2016 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 29.9% 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 8.9%, 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 73.2%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $0 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 6.8% 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 0%.

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 100.3%.

Life of production assets of 17.6 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 -18.8%. 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 - $1497 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 43.539 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 $5.2 billion.

RELATED COMPANIES Price Int.Val. Rating
V VISA Cl A 108.30 158.71  str.buy
MA Mastercard 146.22 132.40  hold
FLT FleetCor Techn 160.69 383.69  str.buy
FIS Fidelity Natio 95.21 60.35  sell
GPN Global Payment 99.34 35.93  str.sell
VNTV Vantiv 69.81 66.07  hold
CASS Cass Informati 66.05 81.76  buy

COMPANY NEWS

▶ 2 U.S. Picks As Europe Outsources Gasoline Cards   [Oct-10-17 06:40PM  Barrons.com]
▶ EFS Launches New Mobile Technology for Fleet Managers   [Sep-18-17 06:45AM  Business Wire]
▶ WEX, Inc. Value Analysis (NYSE:WEX) : September 1, 2017   [Aug-31-17 11:18PM  Capital Cube]
▶ Stay Positive On FinTech Stocks   [Aug-30-17 02:10PM  Barrons.com]
▶ Insiders Roundup: Facebook, PRA Health Sciences   [Aug-18-17 04:09PM  GuruFocus.com]
▶ ETFs with exposure to WEX, Inc. : August 8, 2017   [Aug-08-17 05:27PM  Capital Cube]
▶ Wex tops Street 2Q forecasts   [Jul-27-17 02:56PM  Associated Press]
▶ 7 of the Worst-Performing Stocks in Gurus' Portfolios   [Jul-07-17 05:44PM  GuruFocus.com]
▶ WEX Inc. Completes Successful Term Loan Repricing   [Jul-03-17 11:31AM  Business Wire]
▶ ETFs with exposure to WEX, Inc. : June 28, 2017   [Jun-28-17 03:09PM  Capital Cube]
▶ WEX Survey Reveals CFOs Thoughts on Future of Payments   [Jun-22-17 06:45AM  Business Wire]
▶ WEX Inc. and GasBuddy Form Strategic Alliance   [Jun-14-17 07:30AM  Business Wire]
▶ WEX Inc. Announces Plans for Potential Debt Repricing   [Jun-12-17 06:30AM  Business Wire]
▶ WEX Named Great Place to Work   [Jun-08-17 07:30AM  Business Wire]
▶ EFS Launches New Mobile Technology for Drivers   [Jun-06-17 07:00AM  Business Wire]
▶ WEX Motopass Fuel Card launches new Online Service Centre   [May-17-17 04:45PM  Business Wire]
▶ WEX, Inc. Value Analysis (NYSE:WEX) : April 27, 2017   [Apr-27-17 05:22PM  Capital Cube]
▶ Wex beats Street 1Q forecasts   [07:52AM  Associated Press]
▶ EFS Expands Relationship with Pilot Flying J   [06:50AM  Business Wire]
▶ Knight Transportation Extends Relationship with EFS   [Apr-04-17 07:30AM  Business Wire]
▶ WEX Expands Asian Virtual Payments Solution to Singapore   [Apr-02-17 04:30PM  Business Wire]
▶ WEX Health Strengthens Position as an Industry Leader   [Mar-23-17 04:20PM  Business Wire]
▶ Hedge Funds Arent Crazy About WEX Inc (WEX) Anymore   [Dec-14-16 04:00AM  at Insider Monkey]
▶ David Cooper Joins WEX as Chief Technology Officer   [Dec-13-16 05:00PM  Business Wire]
▶ Hedge Funds Are Buying NCR Corporation (NCR)   [Dec-01-16 09:37AM  at Insider Monkey]
Financial statements of WEX
Valuation of Stocks

The paper VALUATION OF STOCKS: The Quest for Intrinsic Value provides a detailed description of our valuation model and discloses the calculation algorithm.

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