Assessing Wix.com (WIX) Valuation After Prolonged Share Price Weakness

Simply Wall St.01-21

AdvertisementRecent share performance and business snapshot Wix.com (WIX) has recently seen weaker share performance, with returns over the past month, past 3 months and year all in negative territory...

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This naturally draws attention to its underlying business metrics.\nThe company reports annual revenue of US$1.93b and net income of US$138.9m, with annual revenue growth of 11.0% and net income growth of 24.7%. These figures give investors concrete data to weigh against the recent share price pullback.\nSee...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK4116":"互联网服务与基础架构","BK4588":"碎股","BK4585":"ETF&股票定投概念","DCF":"Dreyfus Alcentra Global Credit Income 2024 Target Term Fund, Inc","BK4548":"巴美列捷福持仓","WIX":"Wix.Com Ltd"},"translate_title":"股价长期疲软后评估Wix.com(WIX)的估值","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"WIX":1.5,"DCF":1},"content_text":"AdvertisementRecent share performance and business snapshot Wix.com (WIX) has recently seen weaker share performance, with returns over the past month, past 3 months and year all in negative territory. This naturally draws attention to its underlying business metrics. The company reports annual revenue of US$1.93b and net income of US$138.9m, with annual revenue growth of 11.0% and net income growth of 24.7%. These figures give investors concrete data to weigh against the recent share price pullback. See our latest analysis for Wix.com. At a share price of US$76.24, Wix.com has seen a sharp loss of momentum, with a 30 day share price return of negative 27.0% and a 1 year total shareholder return of negative 68.0%, which points to investors reassessing growth prospects and risk around the story despite the company’s current revenue and net income profile. If you are rethinking your tech exposure after Wix.com’s pullback, it could be a good time to scan high growth tech and AI stocks for other opportunities in the sector. With Wix.com trading at US$76.24, alongside an indicated intrinsic discount and a gap to analyst targets, the key question is whether recent weakness leaves the shares undervalued or if the market is already pricing in future growth. Price-to-Earnings of 30x: Is it justified? On a simple P/E view, Wix.com trades at 30x earnings, which screens as expensive relative to both its US IT industry group and closer peers. The P/E ratio compares the current share price to earnings per share, so a higher multiple usually means the market is willing to pay more for each dollar of profit. For a software platform like Wix.com, that often reflects expectations around future earnings growth, business quality, or both. Here, the picture is mixed. On one hand, Wix.com is described as good value versus an estimated fair P/E of 35.2x. This is a level the market could theoretically move toward if that assessment holds. On the other hand, the current 30x multiple is higher than the US IT industry average of 27.4x and above the peer average of 26.6x, so investors are currently paying a premium compared to similar businesses. Put simply, the stock trades at a richer multiple than industry and peers, yet still below the estimated fair ratio. This creates a tension between premium pricing today and a higher implied “fair” level. Explore the SWS fair ratio for Wix.com Result: Price-to-Earnings of 30x (ABOUT RIGHT) However, the sharp 1 year total shareholder return decline of 68% and a 5 year total return decline of 69% highlight sentiment risk if growth expectations reset further. Find out about the key risks to this Wix.com narrative. Another view on value: what does cash flow say? The P/E suggests Wix.com sits on the expensive side of its peer group, but our DCF model points in the opposite direction. The shares are trading at US$76.24 versus an estimated future cash flow value of US$151.99, which represents roughly a 50% discount. Which signal do you treat as more important? Look into how the SWS DCF model arrives at its fair value. WIX Discounted Cash Flow as at Jan 2026Simply 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 872 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 look at the numbers and come to a different conclusion, or simply prefer to dig into the details yourself, you can build your own view in just a few minutes with Do it your way. A great starting point for your Wix.com research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision. Looking for more investment ideas? If Wix.com is on your radar, consider scanning a few focused screens so you do not miss other opportunities that fit your style.  Spot potential mispricings by checking out these 872 undervalued stocks based on cash flows, where companies are filtered using cash flow based valuation signals. Explore technology themes by scanning these 24 AI penny stocks, focusing on smaller names tied to artificial intelligence trends. Look into income ideas with these 13 dividend stocks with yields > 3%, highlighting companies offering dividend yields above 3%.   This article by Simply Wall St is general in nature. We provide commentary based on historical data\n    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\n    financial situation. We aim to bring you long-term focused analysis driven by fundamental data.\n    Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.\n    Simply Wall St has no position in any stocks mentioned.Valuation is complex, but we're here to simplify it.Discover if Wix.com might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.Access Free AnalysisHave feedback on this article? Concerned about the content? Get in touch with us directly. 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