Warby Parker Inc.

NYSE:WRBY Stock Report

Market Cap: US$2.8b

Warby Parker Valuation

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

Valuation Score

1/6

Valuation Score 1/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of WRBY when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: WRBY ($23.06) is trading above our estimate of fair value ($0.07)

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

Key Valuation Metric

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

Key metric: As WRBY is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for WRBY. This is calculated by dividing WRBY's market cap by their current revenue.
What is WRBY's PS Ratio?
PS Ratio3.7x
SalesUS$742.53m
Market CapUS$2.77b

Price to Sales Ratio vs Peers

How does WRBY's PS Ratio compare to its peers?

The above table shows the PS ratio for WRBY vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average4.9x
FIVE Five Below
1.3x8.4%US$4.7b
ASO Academy Sports and Outdoors
0.5x4.7%US$3.2b
UPBD Upbound Group
0.4x3.7%US$1.8b
WINA Winmark
17.2x4.2%US$1.4b
WRBY Warby Parker
3.7x12.0%US$2.8b

Price-To-Sales vs Peers: WRBY is good value based on its Price-To-Sales Ratio (3.7x) compared to the peer average (4.9x).

Price to Sales Ratio vs Industry

How does WRBY's PS Ratio compare vs other companies in the US Specialty Retail Industry?

43 CompaniesPrice / SalesEstimated GrowthMarket Cap
TA TravelCenters of America
0.1x-0.8%US$1.30b
ODP ODP
0.1x-2.1%US$777.35m
ARKO Arko
0.08x-1.7%US$758.30m
GCO Genesco
0.1x1.9%US$331.04m
WRBY 3.7xIndustry Avg. 0.4xNo. of Companies43PS00.61.21.82.43+
43 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: WRBY is expensive based on its Price-To-Sales Ratio (3.7x) compared to the US Specialty Retail industry average (0.4x).

Price to Sales Ratio vs Fair Ratio

What is WRBY's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

WRBY PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio3.7x
Fair PS Ratio1.3x

Price-To-Sales vs Fair Ratio: WRBY is expensive based on its Price-To-Sales Ratio (3.7x) compared to the estimated Fair Price-To-Sales Ratio (1.3x).

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 WRBY forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$23.06
US$20.69
-10.3%
12.0%US$26.00US$17.00n/a13
Nov ’25US$17.45
US$17.31
-0.8%
11.4%US$20.00US$14.00n/a13
Oct ’25US$15.58
US$16.93
+8.7%
10.8%US$20.00US$14.00n/a14
Sep ’25US$14.92
US$16.93
+13.5%
10.8%US$20.00US$14.00n/a14
Aug ’25US$15.86
US$16.58
+4.6%
11.1%US$19.00US$14.00n/a12
Jul ’25US$15.87
US$16.50
+4.0%
11.5%US$19.00US$14.00n/a12
Jun ’25US$17.71
US$16.50
-6.8%
11.5%US$19.00US$14.00n/a12
May ’25US$11.98
US$15.17
+26.6%
15.9%US$19.00US$12.00n/a12
Apr ’25US$14.00
US$15.17
+8.3%
15.9%US$19.00US$12.00n/a12
Mar ’25US$12.90
US$15.69
+21.6%
18.8%US$22.00US$12.00n/a13
Feb ’25US$13.05
US$15.69
+20.2%
20.4%US$22.00US$12.00n/a13
Jan ’25US$14.10
US$15.38
+9.1%
22.6%US$22.00US$11.00n/a13
Dec ’24US$11.05
US$15.38
+39.2%
22.6%US$22.00US$11.00n/a13
Nov ’24US$12.41
US$15.85
+27.7%
19.6%US$22.00US$12.00US$17.4513
Oct ’24US$13.16
US$15.75
+19.7%
20.4%US$22.00US$12.00US$15.5812
Sep ’24US$12.14
US$16.00
+31.8%
20.3%US$22.00US$12.00US$14.9211
Aug ’24US$14.51
US$15.73
+8.4%
21.9%US$22.00US$12.00US$15.8611
Jul ’24US$11.69
US$15.73
+34.5%
21.9%US$22.00US$12.00US$15.8711
Jun ’24US$11.29
US$15.73
+39.3%
21.9%US$22.00US$12.00US$17.7111
May ’24US$11.13
US$15.91
+42.9%
23.1%US$22.00US$11.00US$11.9811
Apr ’24US$10.59
US$16.18
+52.8%
21.1%US$22.00US$12.00US$14.0011
Mar ’24US$12.26
US$17.60
+43.6%
24.9%US$26.00US$12.00US$12.9010
Feb ’24US$16.67
US$19.64
+17.8%
23.4%US$26.00US$11.00US$13.0511
Jan ’24US$13.49
US$19.73
+46.2%
23.3%US$26.00US$11.00US$14.1011
Dec ’23US$17.16
US$19.70
+14.8%
24.5%US$26.00US$11.00US$11.0510
Nov ’23US$15.96
US$19.80
+24.1%
25.8%US$29.00US$14.00US$12.4110

Analyst Forecast: Target price is lower than the current share price.

Discover undervalued companies

Inchcape

UK£3.1b

Operates as an automotive distributor and retailer.

IHCP.F

UK£9.26

7D

0%

1Y

n/a

Frasers Group

UK£3.2b

Frasers Group Plc, together with its subsidiaries, retails sports and leisure clothing, footwear, homeware, furniture, sports equipment and bicycles, accessories, and apparel through department stores, shops, and online in the United Kingdom, Europe, the United States, Asia, Oceania, and internationally.

SDIP.F

UK£9.72

7D

0%

1Y

n/a

Gap

US$7.9b

Operates as an apparel retail company.

GAP

US$21.00

7D

-6.0%

1Y

11.7%