Western Union provides money movement and payment services worldwide. The company operates in three segments: Consumer-to-Consumer, Consumer-to-Business, and Business Solutions. The company was founded in 2006 and is based in Englewood, Colorado.
WU Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Western Union CO. To summarize, we found that Western Union CO ranked in the 33th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. In terms of the factors that were most noteworthy in this DCF analysis for WU, they are:
Its compound free cash flow growth rate, as measured over the past 5.77 years, is -0.05% -- higher than only 21.49% of stocks in our DCF forecasting set.
Western Union CO's weighted average cost of capital (WACC) is 7%; for context, that number is higher than merely 17.72% of tickers in our DCF set.
The company's cost of debt, derived from its interest coverage, tax rate, and market capitalization, is greater than only 0% of stocks in its sector (Financial Services).
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Financial Services that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as WU, try L, PRAA, RAND, WLTW, and AON.
Business Insider Intelligence and eMarketer are now Insider Intelligence , a digitally-focused research company from Insider Inc. Learn more about what we offer. This story was delivered to Business Insider Intelligence Payments & Commerce Briefing subscribers earlier this morning. To get this story plus others to your inbox each day, hours before they're published on Business Insider, click here. Western Union has made a takeover offer for its fellow legacy remittance firm, Bloomberg reports. The deal is yet to be finalized and may not come to fruition, but if it does it would join two of the largest remittance firms in the world: Western Union brought in $4.4 billion in revenue from its consumer-to-consumer (C2C) segment in 2019, while MoneyGram recorded over $1.1 billion in money tra...