I haven't seen the post on the VICm but I will definitely read it now.
Regarding the discount rate, I ended up using a WACC of 9.34%. I always use a Beta of 1 for my valuations. If you want to discuss my approach more in-depth, feel free to dm me!
Thanks Riccardo! I also use a very simplistic discount rate (8% for US/UK), which I think is a decent proxy for the long-term risk-free rate and inflation.
I also came to a similiar conclusion that WISE is under-valued at the moment, as it is the best cross-border service on the market and also has other growth engines running. It is also one of the rare Tech companies that doesn't dilute shareholders and takes a very long-term view.
Hi Riccardo - great write-up!
Also sharing a recent Value Investor's Club write-up on WISE (if you haven't seen it already). It has a few more points to consider (especially in the comments section) - https://www.valueinvestorsclub.com/idea/WISE_PLC/2525212882
I'm also a Wise shareholder and I think it has a great future and follows Nick Sleep's "Scale Economics Shared" model.
One question on your DCF - what discount rate did you use?
Hi Sharad! Thanks for the comment!
I haven't seen the post on the VICm but I will definitely read it now.
Regarding the discount rate, I ended up using a WACC of 9.34%. I always use a Beta of 1 for my valuations. If you want to discuss my approach more in-depth, feel free to dm me!
Thanks Riccardo! I also use a very simplistic discount rate (8% for US/UK), which I think is a decent proxy for the long-term risk-free rate and inflation.
I also came to a similiar conclusion that WISE is under-valued at the moment, as it is the best cross-border service on the market and also has other growth engines running. It is also one of the rare Tech companies that doesn't dilute shareholders and takes a very long-term view.