Does the Webull Share Price Reflect Its DCF Upside After New Platform Expansion?

• Wondering if Webull is a quietly mispriced opportunity or a value trap in plain sight? This breakdown will help you decide whether the current share price really makes sense.
• Despite being down 24.8% year to date and 24.9% over the last year, Webull has shown some short-term resilience, with the stock edging up 1.4% in the last week and 5.4% over the past month to close at 8.74.
• Recent headlines have focused on Webull expanding its platform features and sharpening its competitive positioning in zero commission trading, moves that are aimed at deepening user engagement and monetization. At the same time, broader market rotation away from fintech and trading platforms has weighed on sentiment, helping explain why the price has lagged even as the business keeps investing for growth.
• On our valuation framework, Webull scores just 2/6 for being undervalued across key checks. This means there is more work to do before calling it a bargain. Next, we will unpack the usual valuation approaches and, by the end of the article, explore an additional way to think about what this stock is really worth.

Webull scores just 2/6 on our valuation checks. See what other red flags we found in the full valuation breakdown.

Approach 1: Webull Discounted Cash Flow (DCF) Analysis

A Discounted Cash Flow, or DCF, model estimates what a business is worth today by projecting its future cash flows and then discounting them back to their value in today’s dollars.

For Webull, the model starts with last twelve months Free Cash Flow of about $386 million and then assumes this cash flow grows steadily over time. Based on analyst estimates for the next few years, Simply Wall St extends those projections out to 2035, where annual Free Cash Flow is expected to reach roughly $591 million. Each of those future cash flows is discounted back to today using the 2 Stage Free Cash Flow to Equity framework.

Adding those discounted cash flows together produces an intrinsic value estimate of $17.98 per share. When compared with the current market price of $8.74, the DCF implies Webull is trading at about a 51.4% discount. This indicates the market may be underestimating its long term cash generation potential.

Result: UNDERVALUED

Our Discounted Cash Flow (DCF) analysis suggests Webull is undervalued by 51.4%. Track this in your watchlist or portfolio, or discover 898 more undervalued stocks based on cash flows.

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

Approach 2: Webull Price vs Sales

For companies where profits can be volatile or still ramping, the price to sales ratio is often a better snapshot of valuation because it focuses on revenue traction rather than near term earnings noise.

In broad terms, higher growth and predictable cash flows can justify a higher price to sales multiple, while slower growth or higher risk usually call for something closer to, or even below, the market and industry norms.

Webull currently trades at about 8.52x sales, well above the Capital Markets industry average of roughly 3.90x and its peer group, which sits nearer 1.82x. On the surface that premium might suggest the stock is expensive compared to other platforms and brokers.

Simply Wall St’s Fair Ratio framework refines this view by estimating what price to sales multiple Webull should command once its growth profile, margins, risk factors, industry and size are all factored in. This produces a Fair Ratio of about 5.58x, which is typically more informative than simple peer or sector comparisons because it is tailored to the company’s fundamentals.

Comparing Webull’s current 8.52x to the 5.58x Fair Ratio points to the shares trading ahead of what the fundamentals justify.

Result: OVERVALUED

PS ratios tell one story, but what if the real opportunity lies elsewhere? Discover 1458 companies where insiders are betting big on explosive growth.

Upgrade Your Decision Making: Choose your Webull Narrative

Earlier we mentioned that there is an even better way to understand valuation, so let us introduce you to Narratives, a simple way to connect your view of a company’s story with a concrete forecast for its future revenue, earnings and margins, and then a Fair Value that you can compare to today’s price. On Simply Wall St’s Community page, millions of investors use Narratives as an easy, visual tool to express their assumptions, see how those assumptions translate into future cash flows and valuation, and then decide whether a stock looks buyable or stretched at current levels. Because Narratives update dynamically as new information arrives, like Webull’s Vega launch or fresh earnings, your Fair Value view is always anchored to the latest data instead of a static spreadsheet. For example, one Webull Narrative on Simply Wall St might lean bullish and land near a Fair Value of $18.00 per share, while a more cautious Narrative could anchor closer to $8.74, showing how different expectations about growth, profitability and risk can still be compared side by side in a structured, numbers backed way.

Do you think there's more to the story for Webull? Head over to our Community to see what others are saying!

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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