The Western Union Company

LSE:0LVJ Stock Report

Market Cap: US$3.7b

Western Union Valuation

Is 0LVJ undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 0LVJ when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 0LVJ ($11.02) is trading below our estimate of fair value ($31.95)

Significantly Below Fair Value: 0LVJ is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 0LVJ?

Key metric: As 0LVJ is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 0LVJ. This is calculated by dividing 0LVJ's market cap by their current earnings.
What is 0LVJ's PE Ratio?
PE Ratio5.4x
EarningsUS$675.50m
Market CapUS$3.66b

Price to Earnings Ratio vs Peers

How does 0LVJ's PE Ratio compare to its peers?

The above table shows the PE ratio for 0LVJ vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average35.7x
BOKU Boku
96.6x38.6%UK£553.1m
WISE Wise
19.9x-7.9%UK£8.6b
PAY PayPoint
16.9xn/aUK£602.4m
CABP CAB Payments Holdings
9.5x26.1%UK£183.7m
0LVJ Western Union
5.4x-4.7%US$3.7b

Price-To-Earnings vs Peers: 0LVJ is good value based on its Price-To-Earnings Ratio (5.4x) compared to the peer average (35.7x).

Price to Earnings Ratio vs Industry

How does 0LVJ's PE Ratio compare vs other companies in the GB Diversified Financial Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
NBS Nationwide Building Society
0.9xn/aUS$1.52b
No more companies available in this PE range
0LVJ 5.4xIndustry Avg. 14.2xNo. of Companies4PE01224364860+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 0LVJ is good value based on its Price-To-Earnings Ratio (5.4x) compared to the UK Diversified Financial industry average (14.2x).

Price to Earnings Ratio vs Fair Ratio

What is 0LVJ's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

0LVJ PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio5.4x
Fair PE Ratio13.9x

Price-To-Earnings vs Fair Ratio: 0LVJ is good value based on its Price-To-Earnings Ratio (5.4x) compared to the estimated Fair Price-To-Earnings Ratio (13.9x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst 0LVJ forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$11.02
US$12.97
+17.7%
15.6%US$18.00US$10.00n/a15
Nov ’25US$10.75
US$12.97
+20.6%
15.6%US$18.00US$10.00n/a15
Oct ’25US$11.77
US$13.17
+11.9%
14.9%US$18.00US$10.00n/a15
Sep ’25US$12.14
US$13.17
+8.5%
14.9%US$18.00US$10.00n/a15
Aug ’25US$11.71
US$13.41
+14.5%
14.4%US$18.00US$10.00n/a16
Jul ’25US$12.19
US$13.69
+12.3%
14.6%US$18.00US$10.00n/a16
Jun ’25US$12.77
US$13.69
+7.2%
14.6%US$18.00US$10.00n/a16
May ’25US$13.20
US$13.69
+3.7%
14.6%US$18.00US$10.00n/a16
Apr ’25US$13.89
US$13.31
-4.2%
15.5%US$18.00US$10.00n/a16
Mar ’25US$13.46
US$13.24
-1.7%
15.1%US$18.00US$10.00n/a17
Feb ’25US$12.67
US$13.12
+3.5%
15.9%US$18.00US$10.00n/a17
Jan ’25US$11.89
US$13.34
+12.2%
16.0%US$18.00US$10.00n/a16
Dec ’24US$11.59
US$13.43
+15.9%
16.2%US$18.00US$10.00n/a15
Nov ’24US$11.35
US$13.43
+18.4%
16.2%US$18.00US$10.00US$10.7515
Oct ’24US$13.30
US$13.39
+0.7%
16.6%US$18.00US$10.00US$11.7714
Sep ’24US$12.47
US$13.31
+6.8%
15.7%US$18.00US$10.00US$12.1416
Aug ’24US$12.08
US$13.31
+10.2%
15.7%US$18.00US$10.00US$11.7116
Jul ’24US$11.70
US$12.53
+7.1%
18.8%US$18.00US$10.00US$12.1916
Jun ’24US$11.47
US$12.56
+9.6%
19.8%US$18.00US$10.00US$12.7716
May ’24US$10.93
US$13.44
+23.0%
19.3%US$18.00US$10.00US$13.2016
Apr ’24US$11.12
US$13.79
+24.0%
17.4%US$18.00US$10.00US$13.8917
Mar ’24US$12.92
US$14.69
+13.7%
20.3%US$24.00US$10.00US$13.4618
Feb ’24US$14.14
US$13.97
-1.2%
15.4%US$18.00US$10.00US$12.6717
Jan ’24US$13.70
US$14.06
+2.6%
14.9%US$18.00US$10.00US$11.8917
Dec ’23US$14.61
US$14.61
+0.007%
20.9%US$24.00US$10.00US$11.5918
Nov ’23US$13.70
US$14.21
+3.7%
14.2%US$18.00US$10.00US$11.3517

Analyst Forecast: Target price is less than 20% higher than the current share price.

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