We’ve recently updated our valuation analysis.

Wix.com Valuation

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

[object Object] Score

2/6

Valuation Score 2/6

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

WIX key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue3.7x
Enterprise Value/EBITDA-15.3x
PEG Ration/a

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for WIX vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPSEstimated GrowthMarket Cap
Peer Average4.9x
GDDY GoDaddy
3x8.0%US$12.4b
BIGC BigCommerce Holdings
2.6x16.3%US$695.8m
SHOP Shopify
10.5x20.8%US$55.2b
SQSP Squarespace
3.4x12.1%US$2.8b
WIX Wix.com
3.9x10.2%US$5.4b

Price-To-Sales vs Peers: WIX is good value based on its Price-To-Sales Ratio (3.9x) compared to the peer average (4.9x).


Price to Earnings Ratio vs Industry

How does WIX's PE Ratio compare vs other companies in the US IT Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a20.7%
n/an/an/a

Price-To-Sales vs Industry: WIX is expensive based on its Price-To-Sales Ratio (3.9x) compared to the US IT industry average (2.3x)


Price to Sales Ratio vs Fair Ratio

What is WIX'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.

WIX PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio3.9x
Fair PS Ratio3.4x

Price-To-Sales vs Fair Ratio: WIX is expensive based on its Price-To-Sales Ratio (3.9x) compared to the estimated Fair Price-To-Sales Ratio (3.4x).


Share Price vs Fair Value

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

Below Fair Value: WIX ($91.14) is trading below our estimate of fair value ($107.5)

Significantly Below Fair Value: WIX is trading below fair value, but not by a significant amount.


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 WIX forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$91.14
US$97.60
+7.1%
13.1%US$120.00US$78.00n/a15
Nov ’23US$83.84
US$93.07
+11.0%
18.8%US$130.00US$68.00n/a14
Oct ’23US$78.23
US$93.64
+19.7%
18.4%US$130.00US$68.00n/a14
Sep ’23US$62.22
US$92.38
+48.5%
18.7%US$130.00US$68.00n/a13
Aug ’23US$60.60
US$93.00
+53.5%
25.8%US$160.00US$68.00n/a13
Jul ’23US$68.21
US$95.86
+40.5%
25.8%US$160.00US$68.00n/a14
Jun ’23US$61.38
US$100.13
+63.1%
28.7%US$160.00US$68.00n/a15
May ’23US$75.46
US$131.12
+73.8%
28.0%US$200.00US$78.00n/a17
Apr ’23US$107.11
US$135.38
+26.4%
26.4%US$200.00US$85.00n/a16
Mar ’23US$85.71
US$140.63
+64.1%
33.5%US$269.00US$85.00n/a16
Feb ’23US$130.83
US$223.32
+70.7%
21.1%US$320.00US$130.00n/a19
Jan ’23US$157.79
US$249.95
+58.4%
12.5%US$320.00US$200.00n/a19
Dec ’22US$146.46
US$251.26
+71.6%
12.0%US$320.00US$200.00US$91.1419
Nov ’22US$192.02
US$256.90
+33.8%
11.6%US$320.00US$200.00US$83.8420
Oct ’22US$187.73
US$266.78
+42.1%
10.1%US$320.00US$210.00US$78.2318
Sep ’22US$224.31
US$267.65
+19.3%
10.2%US$320.00US$210.00US$62.2217
Aug ’22US$298.64
US$323.85
+8.4%
8.6%US$360.00US$250.00US$60.6020
Jul ’22US$291.89
US$323.05
+10.7%
8.8%US$360.00US$250.00US$68.2119
Jun ’22US$261.79
US$324.89
+24.1%
8.8%US$360.00US$250.00US$61.3819
May ’22US$317.88
US$352.94
+11.0%
8.7%US$420.00US$270.00US$75.4618
Apr ’22US$293.30
US$351.94
+20.0%
8.9%US$420.00US$270.00US$107.1117
Mar ’22US$340.52
US$350.50
+2.9%
9.4%US$420.00US$270.00US$85.7116
Feb ’22US$259.99
US$329.13
+26.6%
8.8%US$363.00US$270.00US$130.8316
Jan ’22US$249.96
US$330.35
+32.2%
8.6%US$363.00US$270.00US$157.7917
Dec ’21US$249.73
US$325.39
+30.3%
12.2%US$363.00US$200.00US$146.4618

Analyst Forecast: Target price is less than 20% higher than the current share price.


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