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:
Below please find a table outlining a discounted cash flow forecast for WU, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Western Union CO ranked in the 37th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 14.5%. As for the metrics that stood out in our discounted cash flow analysis of Western Union CO, consider:
The company's compound free cash flow growth rate over the past 5.81 years comes in at -0.03%; that's greater than merely 24.07% of US stocks we're applying DCF forecasting to.
Western Union CO's weighted average cost of capital (WACC) is 7%; for context, that number is higher than only 19.57% 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 just 0% of stocks in its sector (Financial Services).
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
NDAQ, SAFT, SEIC, CME, and FRFHF can be thought of as valuation peers to WU, in the sense that they are in the Financial Services sector and have a similar price forecast based on DCF valuation.