Waterdrop Inc.

NYSE:WDH Stock Report

Market Cap: US$420.6m

Waterdrop Valuation

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

Valuation Score

4/6

Valuation Score 4/6

  • 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 WDH when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: WDH ($1.15) is trading above our estimate of fair value ($0.65)

Significantly Below Fair Value: WDH is trading above our estimate of fair value.

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for WDH. This is calculated by dividing WDH's market cap by their current earnings.
What is WDH's PE Ratio?
PE Ratio11.6x
EarningsCN¥264.72m
Market CapCN¥3.05b

Price to Earnings Ratio vs Peers

How does WDH's PE Ratio compare to its peers?

The above table shows the PE ratio for WDH vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average38.6x
CRD.B Crawford
26.3x61.1%US$555.6m
TWFG TWFG
76x43.3%US$1.8b
AIFU AIX
3.5xn/aUS$67.5m
ZBAO Zhibao Technology
48.6xn/aUS$97.1m
WDH Waterdrop
11.6x17.8%US$420.6m

Price-To-Earnings vs Peers: WDH is good value based on its Price-To-Earnings Ratio (11.6x) compared to the peer average (38.6x).

Price to Earnings Ratio vs Industry

How does WDH's PE Ratio compare vs other companies in the US Insurance Industry?

3 CompaniesPrice / EarningsEstimated GrowthMarket Cap
UTGN UTG
2xn/aUS$89.45m
AORE.F American Overseas Group
2.1xn/aUS$16.68m
CUII China United Insurance Service
0.0003xn/aUS$3.13k
No more companies available in this PE range
WDH 11.6xIndustry Avg. 13.5xNo. of Companies15PE01020304050+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: WDH is good value based on its Price-To-Earnings Ratio (11.6x) compared to the US Insurance industry average (13.5x).

Price to Earnings Ratio vs Fair Ratio

What is WDH'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.

WDH PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio11.6x
Fair PE Ratio12.4x

Price-To-Earnings vs Fair Ratio: WDH is good value based on its Price-To-Earnings Ratio (11.6x) compared to the estimated Fair Price-To-Earnings Ratio (12.4x).

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 WDH forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$1.15
US$1.75
+52.4%
14.4%US$1.95US$1.40n/a3
Nov ’25US$1.12
US$1.75
+56.5%
14.4%US$1.95US$1.40n/a3
Oct ’25US$1.20
US$1.71
+42.3%
13.2%US$1.93US$1.39n/a4
Sep ’25US$1.05
US$1.83
+73.9%
6.3%US$1.93US$1.64n/a4
Aug ’25US$1.10
US$1.80
+63.9%
6.6%US$1.91US$1.61n/a4
Jul ’25US$1.15
US$1.80
+56.7%
6.5%US$1.90US$1.61n/a4
Jun ’25US$1.38
US$1.84
+33.5%
24.2%US$2.40US$1.16n/a4
May ’25US$1.16
US$1.82
+57.0%
28.1%US$2.40US$1.15n/a3
Apr ’25US$1.29
US$1.82
+40.8%
27.8%US$2.38US$1.16n/a3
Mar ’25US$1.28
US$1.78
+38.8%
34.7%US$2.39US$1.16n/a2
Feb ’25US$0.97
US$1.79
+84.3%
34.0%US$2.39US$1.18n/a2
Jan ’25US$1.04
US$2.19
+111.0%
34.5%US$3.00US$1.18n/a3
Dec ’24US$1.17
US$2.31
+97.6%
35.2%US$2.95US$1.16n/a3
Nov ’24US$1.07
US$2.17
+102.6%
34.1%US$2.94US$1.16US$1.124
Oct ’24US$1.16
US$2.47
+113.0%
18.6%US$2.94US$1.76US$1.204
Sep ’24US$1.58
US$2.57
+62.4%
20.8%US$3.14US$1.77US$1.054
Aug ’24US$1.83
US$2.57
+40.4%
21.7%US$3.19US$1.80US$1.104
Jul ’24US$2.08
US$2.57
+23.5%
21.7%US$3.19US$1.80US$1.154
Jun ’24US$2.50
US$2.80
+11.9%
24.5%US$3.51US$1.88US$1.384
May ’24US$2.94
US$2.80
-4.8%
24.5%US$3.51US$1.88US$1.164
Apr ’24US$2.99
US$2.80
-6.3%
24.2%US$3.50US$1.87US$1.294
Mar ’24US$3.03
US$2.56
-15.6%
19.4%US$3.40US$1.90US$1.285
Feb ’24US$3.20
US$2.56
-20.1%
19.4%US$3.40US$1.90US$0.975
Jan ’24US$3.33
US$2.53
-24.1%
18.5%US$3.32US$1.92US$1.045
Dec ’23US$1.62
US$2.13
+31.4%
14.3%US$2.66US$1.79US$1.175
Nov ’23US$1.46
US$2.13
+45.8%
14.3%US$2.66US$1.79US$1.075

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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