Webull (BULL): Valuation in Focus After Strong Earnings and Vega AI Platform Launch

Webull (BULL) is getting extra attention after its quarterly earnings update showed a big jump in revenue and a swing from loss to profit. The recent launch of its advanced AI tool, Vega, is also generating discussion among investors.

See our latest analysis for Webull.

After unveiling both a sharp increase in revenue and its new Vega platform, Webull has seen momentum shift rapidly. While investor excitement followed those headlines, the stock’s 1-year total shareholder return is still down 27.5%, with the share price currently at $8.29. Momentum is mixed. Webull’s focus on innovation and profitability could attract renewed attention if that trend reverses.

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With these strong results and product rollouts, is Webull truly undervalued at today’s price? Alternatively, is the market already factoring in its growth, leaving little upside for new buyers?

Most Popular Narrative: 49.8% Undervalued

Webull’s most followed narrative points to a fair value almost double the latest share price, suggesting major upside if predictions play out. This narrative uses a discount rate of 8% to project potential gains based on long-term growth and margin assumptions.

Ongoing expansion into new international markets, including recent launches in Canada, Latin America, and Europe, is rapidly diversifying Webull's customer base and driving robust growth in assets under management (AUM). This supports future revenue and top-line growth. The successful launch and acceleration of subscription-based offerings such as Webull Premium and paid analytics products are already exceeding targets, combining higher daily trading activity and increased average revenue per user (ARPU) to boost net margins and recurring revenue stability.

Read the complete narrative.

Want to know the growth blueprint fueling this bullish narrative? It is built around aggressive international expansion, strong recurring revenue, and ambitious profit assumptions. Ready for the numbers and logic driving such a bold valuation call? Dive in to see what could be powering the next move for Webull.

Result: Fair Value of $16.50 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, a downturn in retail trading activity or tougher regulatory hurdles could quickly challenge these upbeat projections and reduce Webull’s growth outlook.

Find out about the key risks to this Webull narrative.

Another View: Multiples Tell a Different Story

Looking at valuation through the lens of the price-to-sales ratio presents a much less optimistic picture for Webull. Trading at 8 times sales, the stock is far more expensive than the US Capital Markets industry average of 3.7x, and peers at just 1.5x. Even compared to its fair ratio of 8.1x, Webull sits right at the threshold. For investors, this means the risk of overpaying is significantly higher unless rapid growth materializes as promised. Should investors buy in at these elevated multiples or wait for a more attractive entry point?

See what the numbers say about this price — find out in our valuation breakdown.

Build Your Own Webull Narrative

If you see these conclusions differently, or like to dig into the numbers firsthand, you can craft your own perspective in just a few minutes. Do it your way

A great starting point for your Webull research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.

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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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