Assessing Wolters Kluwer After a 31% Drop and New Digital Initiative in 2025

Deciding what to do with Wolters Kluwer stock right now? You are not alone. Plenty of investors are weighing their options after a stretch of interesting price action. Over the last week, shares slipped 3.0%, and while the stock rebounded slightly over the past month with a 0.7% gain, the year-to-date figure is a sharper -31.2%. For those who have stuck with the company longer term, the five-year gain of nearly 65% is a testament to its enduring appeal. But clearly, something has shifted in the market’s perception of risk or growth when it comes to this stock.

Macro trends and sector-wide developments, such as innovations in digital workflow and evolving compliance demands, have played a role in shaping expectations. When investors see a big swing in returns, it is often linked to shifts in confidence about future earnings or competitive positioning more than to any one news headline.

So, is Wolters Kluwer undervalued at current levels? According to a composite valuation score, the company ticks the boxes on 5 out of 6 key undervaluation checks. That number, a value score of 5, is hard to ignore for anyone hunting for bargains or trying to time a rebound. Of course, there is more to valuation than just checkbox math. Here is a breakdown of how these approaches work, before revealing an even better way to get to the bottom of what this stock is really worth.

Why Wolters Kluwer is lagging behind its peers

Approach 1: Wolters Kluwer Discounted Cash Flow (DCF) Analysis

A Discounted Cash Flow (DCF) model estimates the intrinsic value of a company by projecting its future cash flows and then discounting them back to today's value. This helps investors get a sense of what a business is really worth, based on expectations of how much cash it will generate over time.

For Wolters Kluwer, the latest trailing twelve months Free Cash Flow stands at €1.37 billion. According to analyst forecasts and Simply Wall St's extrapolations, Free Cash Flow is projected to rise steadily, reaching about €2.06 billion by 2035. Analyst projections cover the next five years, and future growth is extrapolated beyond that period. These projections assume continued expansion, but at a gradually moderating pace as the years progress.

Based on the two-stage Free Cash Flow to Equity methodology, the DCF model calculates an intrinsic value per share of €194.73. This represents a discount of 43.1% to the current market price, which suggests that, according to projected cash flows, Wolters Kluwer stock is significantly undervalued at present.

Result: UNDERVALUED

Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Wolters Kluwer.

Our Discounted Cash Flow (DCF) analysis suggests Wolters Kluwer is undervalued by 43.1%. Track this in your watchlist or portfolio, or discover more undervalued stocks.

Approach 2: Wolters Kluwer Price vs Earnings

The Price-to-Earnings (PE) ratio is one of the most widely used valuation tools for assessing profitable companies, as it measures how much investors are willing to pay for each euro of earnings. This multiple is particularly meaningful for mature, income-generating businesses like Wolters Kluwer, where profits can provide a clearer picture of underlying value.

What PE ratio is “fair” depends on a range of factors such as higher growth expectations, robust margins, or perceived stability, which can justify a higher multiple. In contrast, elevated risks or slower growth often warrant a lower one. Currently, Wolters Kluwer trades at 22.6x earnings, which is above the professional services industry average of 19.7x, but notably below the peer group average of 42.6x. This suggests that investors are paying a modest premium to the sector, but not nearly as much as for other leading peers.

To provide a more nuanced comparison, Simply Wall St calculates a “Fair Ratio” of 27.9x for Wolters Kluwer. This proprietary benchmark goes beyond industry and peer averages by weighing factors like projected growth, profit margins, company size, and risk profile. Since the company’s actual PE of 22.6x is slightly below this fair value estimate, it indicates that the stock may be trading below what would be considered reasonable for its outlook and quality.

Result: UNDERVALUED

PE ratios tell one story, but what if the real opportunity lies elsewhere? Discover companies where insiders are betting big on explosive growth.

Upgrade Your Decision Making: Choose your Wolters Kluwer Narrative

Earlier we mentioned that there is an even better way to understand valuation, so let's introduce you to Narratives. A Narrative is a simple, structured story that puts your perspective on Wolters Kluwer into action. You connect the company's business developments and strategy to your own assumptions for future revenue, earnings, and margins, creating your fair value estimate in a way that goes far beyond the headline numbers.

On Simply Wall St's Community page, millions of investors use Narratives as an easy, dynamic tool to link a company's story to financial forecasts, quickly seeing how their view compares with others. Narratives empower you to decide when to buy or sell by comparing your Fair Value with the current Price. Because they update automatically as new news or earnings emerge, you always have the latest insights based on real events.

For example, some investors might create a bullish Narrative for Wolters Kluwer, emphasizing the cloud migration, AI innovation, and recurring revenues, arriving at a fair value near €175. Others may take a more conservative stance, focusing on competition and print declines, with a fair value closer to €117. Narratives put your personal view at the center, helping you make smarter, more confident investing decisions.

Do you think there's more to the story for Wolters Kluwer? Create your own Narrative to let the Community know!

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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