Wix.com Valuation

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

Valuation Score

3/6

Valuation Score 3/6

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

Below Fair Value: WIX ($137.48) is trading below our estimate of fair value ($213.23)

Significantly Below Fair Value: WIX is trading below fair value by more than 20%.


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/Revenue4.9x
Enterprise Value/EBITDA234.4x
PEG Ratio6.8x

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.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average4x
SQSP Squarespace
4.9x12.1%US$5.0b
TWLO Twilio
2.7x7.0%US$11.1b
GDDY GoDaddy
4x6.8%US$17.4b
AKAM Akamai Technologies
4.3x7.0%US$16.6b
WIX Wix.com
4.9x10.6%US$7.6b

Price-To-Sales vs Peers: WIX is expensive based on its Price-To-Sales Ratio (4.9x) compared to the peer average (4x).


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/a17.1%
n/an/an/a
No. of CompaniesPS048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a17.1%
n/an/an/a
No more companies

Price-To-Sales vs Industry: WIX is expensive based on its Price-To-Sales Ratio (4.9x) compared to the US IT industry average (1.9x).


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 Ratio4.9x
Fair PS Ratio5.1x

Price-To-Sales vs Fair Ratio: WIX is good value based on its Price-To-Sales Ratio (4.9x) compared to the estimated Fair Price-To-Sales Ratio (5.1x).


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$137.48
US$156.39
+13.8%
8.9%US$180.00US$127.00n/a20
Mar ’25US$139.28
US$156.19
+12.1%
9.1%US$180.00US$127.00n/a19
Feb ’25US$127.17
US$135.51
+6.6%
10.6%US$155.00US$100.00n/a19
Jan ’25US$123.02
US$124.33
+1.1%
7.7%US$140.00US$100.00n/a18
Dec ’24US$105.70
US$122.00
+15.4%
8.3%US$140.00US$100.00n/a18
Nov ’24US$78.20
US$118.44
+51.5%
9.4%US$130.00US$100.00n/a18
Oct ’24US$91.80
US$119.65
+30.3%
9.1%US$130.00US$100.00n/a17
Sep ’24US$97.46
US$118.76
+21.9%
9.3%US$130.00US$100.00n/a17
Aug ’24US$93.25
US$107.63
+15.4%
11.1%US$120.00US$86.00n/a16
Jul ’24US$78.24
US$106.06
+35.6%
11.8%US$120.00US$86.00n/a17
Jun ’24US$76.00
US$106.39
+40.0%
11.5%US$120.00US$86.00n/a18
May ’24US$88.74
US$108.38
+22.1%
9.9%US$125.00US$84.00n/a16
Apr ’24US$99.80
US$108.60
+8.8%
10.1%US$125.00US$84.00n/a15
Mar ’24US$87.85
US$105.94
+20.6%
10.9%US$125.00US$84.00US$139.2816
Feb ’24US$90.51
US$98.93
+9.3%
12.0%US$120.00US$78.00US$127.1715
Jan ’24US$76.83
US$97.60
+27.0%
13.1%US$120.00US$78.00US$123.0215
Dec ’23US$91.14
US$97.60
+7.1%
13.1%US$120.00US$78.00US$105.7015
Nov ’23US$83.84
US$93.07
+11.0%
18.8%US$130.00US$68.00US$78.2014
Oct ’23US$78.23
US$93.64
+19.7%
18.4%US$130.00US$68.00US$91.8014
Sep ’23US$62.22
US$92.38
+48.5%
18.7%US$130.00US$68.00US$97.4613
Aug ’23US$60.60
US$93.00
+53.5%
25.8%US$160.00US$68.00US$93.2513
Jul ’23US$68.21
US$95.86
+40.5%
25.8%US$160.00US$68.00US$78.2414
Jun ’23US$61.38
US$100.13
+63.1%
28.7%US$160.00US$68.00US$76.0015
May ’23US$75.46
US$131.12
+73.8%
28.0%US$200.00US$78.00US$88.7417
Apr ’23US$107.11
US$135.38
+26.4%
26.4%US$200.00US$85.00US$99.8016
Mar ’23US$85.71
US$140.63
+64.1%
33.5%US$269.00US$85.00US$87.8516

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


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