Wix.com (WIX) Valuation Spotlight Following CookieYes Privacy Compliance Integration

The latest buzz around Wix.com (NasdaqGS:WIX) centers on CookieYes, a privacy compliance tool that is now fully integrated with the Wix App Market. This means that anyone running a Wix-powered website can easily add robust cookie consent management and meet GDPR and similar regulations without getting tangled in technical details. For investors, the significance is clear: as privacy laws become more complex worldwide, features like this could make Wix's platform more attractive for businesses concerned about credibility and compliance, adding another layer of value to staying with Wix instead of shopping around.

Stepping back, it's interesting to see how this news fits into the bigger picture for Wix.com. While the company’s recent moves to expand privacy solutions show it is responding to customers and market trends, the stock has had a challenging run. It is down over 21% in the past year and has slid nearly 13% in the past month alone. Even with positive metrics like annual revenue and profit growth, investor enthusiasm has waned this year, and short-term momentum has not pointed firmly upward.

The big question for anyone eyeing Wix.com now is whether these new privacy tools and strategic moves offer a bargain entry point, or whether the market is already factoring growth expectations into the current share price.

Most Popular Narrative: 36% Undervalued

According to community narrative, Wix.com is currently seen as significantly undervalued relative to its fair value. Analysts are bullish on the company's prospects due to several forward-looking growth drivers.

"Accelerating adoption of AI-powered tools and onboarding funnels is driving a significant increase in new user cohorts and higher conversion to paid subscriptions. This supports expectations for revenue growth in both the near and long term."

The growth story is not obvious on the surface, but important developments are happening behind the scenes. How do new products, advanced technology, and strategic expansion contribute to such a high target valuation? The financial analysis supporting this narrative is more aggressive than it may first appear. Learn what factors are included in their fair value calculation and why even small missteps could have a substantial impact in the future.

Result: Fair Value of $206.09 (UNDERVALUED)

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

However, ongoing declines in website search traffic and intensifying AI-driven competition could slow Wix.com's growth trajectory if these trends accelerate.

Find out about the key risks to this Wix.com narrative.

Another View: SWS DCF Model Suggests Deeper Value

On the other hand, our DCF model paints an even more optimistic picture. It suggests that Wix.com is even more undervalued compared to the earlier estimate. This raises interesting questions about how the market is pricing future growth.

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 Wix.com 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 Wix.com Narrative

If you see things differently, or would rather shape your own viewpoint, the data is ready for you to build a narrative in just a few minutes. So why not do it your way?

A great starting point for your Wix.com research is our analysis highlighting 4 key rewards and 2 important warning signs that could impact your investment decision.

Looking for More Smart Stock Picks?

Ready to give your portfolio an edge? Don’t miss out on standout investment ideas filtered by performance and potential. Let Simply Wall Street's unique screeners help you take your next confident step in the market:

• Unlock reliable passive income as you scan a curated set of companies offering dividend stocks with yields > 3% and outperforming ordinary payout benchmarks.
• Stay ahead of tech innovation by searching for AI penny stocks and discover AI pioneers who are reshaping the business landscape with breakthrough capabilities.
• Strengthen your position with undervalued stocks based on cash flows by pinpointing stocks where market prices may not fully reflect their strong cash flow fundamentals.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com