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WBC: Future Earnings Will Stay Solid As Discount Rate Support Strengthens

South African Digital Growth Will Drive Affordable Mobility

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WBC
AnalystConsensusTarget
Not Invested
Published 08 Jun 2025
9 viewsusers have viewed this narrative update

Update shared on 13 Mar 2026

02 Jun
R35.14
AnalystConsensusTarget's Fair Value
R48.60
27.7% undervalued intrinsic discount
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1Y
-31.4%
7D
0.6%

Analysts have held their ZAR fair value estimate for We Buy Cars Holdings steady at ZAR56.72 per share. A slightly lower discount rate and marginally adjusted long term profit margin and future P/E assumptions guided the unchanged price target.

Valuation Changes

  • Fair Value: Held steady at ZAR56.72 per share, with no change in the ZAR fair value estimate.
  • Discount Rate: Fallen slightly from 19.65% to 18.69%, reflecting a modest adjustment to the cost of capital used in the model.
  • Revenue Growth: Kept effectively unchanged at about 15.28%, indicating no material shift in ZAR revenue growth assumptions.
  • Net Profit Margin: Maintained at roughly 4.01%, with only a minimal numerical adjustment to the long term margin assumption.
  • Future P/E: Trimmed slightly from 24.75x to 24.16x, signalling a small reduction in the multiple applied to future earnings.

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Disclaimer

AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.