Waystar (WAY): Assessing Valuation After UBS Initiates Coverage With a Buy Rating

Waystar Holding (WAY) just picked up fresh attention after UBS initiated coverage with a buy rating, putting the healthcare payments software provider back on the radar for growth focused investors.

See our latest analysis for Waystar Holding.

With the share price around $32.84, Waystar’s short term share price returns have been choppy, and its 1 year total shareholder return of about negative 11 percent suggests momentum has been fading despite solid underlying growth.

If this UBS call has you rethinking your healthcare exposure, it might be worth exploring other specialised names in the space through healthcare stocks to spot similar or stronger trends.

With revenue and earnings still growing double digits and the share price trading at a sizeable discount to analyst targets, is Waystar quietly undervalued today, or is the market already baking in all that future growth?

Most Popular Narrative: 32.6% Undervalued

With Waystar trading at $32.84 against a narrative fair value near $48.74, the implied upside leans heavily on sustained growth and margin expansion.

The acquisition of Iodine Software, a leading provider of AI powered clinical intelligence, will expand Waystar's total addressable market by over 15%, accelerate its product roadmap, and immediately boost gross margins and adjusted EBITDA margins, setting up compounding, long term revenue and earnings growth.

Read the complete narrative.

Curious how bigger margins, steady revenue gains, and a rich future earnings multiple can still line up as attractive at today’s price? The narrative spells out the growth math, the profitability jump, and the valuation bridge that turn this gap into a potential opportunity. The full breakdown shows exactly how those moving parts work together to support that higher fair value.

Result: Fair Value of $48.74 (UNDERVALUED)

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

However, elevated leverage from the Iodine deal and intensifying competition in AI driven RCM tools could quickly undercut today’s optimistic growth and margin assumptions.

Find out about the key risks to this Waystar Holding narrative.

Another Angle on Valuation

While the narrative fair value points to upside, the earnings multiple tells a tougher story. Waystar trades on a 56.5x P/E, richer than the global Healthcare Services average of 31.9x and above a fair ratio of 32x, which suggests meaningful de rating risk if sentiment cools.

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

Build Your Own Waystar Holding Narrative

If you see the story differently or want to dig into the numbers yourself, you can build a custom view in minutes: Do it your way.

A good starting point is our analysis highlighting 4 key rewards investors are optimistic about regarding Waystar Holding.

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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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