A Look at Wiley’s Valuation Following the Launch of Its New AI Gateway Platform

John Wiley & Sons (NYSE:WLY) has launched the Wiley AI Gateway, a new platform designed to connect leading scholarly publications directly with popular AI tools and services. The Gateway aims to help universities, corporate R&D teams, and AI developers streamline access to reliable research content while maintaining control over citations and data use.

See our latest analysis for John Wiley & Sons.

Wiley’s unveiling of the AI Gateway comes after a year of both technical milestones and ongoing market headwinds. Notably, recent collaborations with the European Space Agency and major software integrations highlight the company’s push into AI-powered research, even as share price returns have slipped. Wiley’s stock is down over 11% in the past month, reflecting soft sentiment despite long-term progress. However, the five-year total shareholder return of nearly 39% shows that patient investors have still been rewarded over time.

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With shares trading well below analyst price targets and the company demonstrating solid long-term gains, the question remains: is this a hidden bargain, or are markets already accounting for Wiley’s future growth potential?

Most Popular Narrative: 39% Undervalued

With John Wiley & Sons last closing at $36.59 and the most followed narrative assigning a fair value of $60, the stage is set for renewed optimism. The current discount suggests the market may not be reflecting the company’s projected gains and profitability shift.

Rapid expansion into AI licensing and data analytics partnerships with major corporate clients is unlocking new, high-margin revenue streams outside of Wiley's traditional academic markets. This increases earnings diversity and accelerates top-line growth.

Read the complete narrative.

A surge in newer business models, rising profit margins, and bigger earnings forecasts are all baked into this fair value. The precise trajectory, balancing recurring revenue, tech innovation, and improved cash flow, remains a mystery unless you dive into the full narrative powering this price target.

Result: Fair Value of $60 (UNDERVALUED)

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

However, shifts toward open access publishing and volatile AI licensing revenues could present challenges for Wiley’s ability to sustain higher margins and consistent growth.

Find out about the key risks to this John Wiley & Sons narrative.

Another View: SWS DCF Model Offers a Different Take

While the market multiples suggest John Wiley & Sons could be undervalued, our DCF model tells a more cautious story. According to the SWS DCF model, the company’s current share price of $36.59 is actually above its intrinsic value estimate of $30.16. This hints at caution rather than opportunity.

Look into how the SWS DCF model arrives at its fair value.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out John Wiley & Sons for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Build Your Own John Wiley & Sons Narrative

If these perspectives don’t quite align with your own, or if diving into the data firsthand is more your style, you can build your own narrative in just a few minutes. Do it your way.

A great starting point for your John Wiley & Sons research is our analysis highlighting 3 key rewards and 2 important warning signs 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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