Western Union Valuation

WU Stock  MXN 222.00  0.00  0.00%   
At this time, the company appears to be undervalued. Western Union maintains a prevalent Real Value of 267.57 per share. The last-minute price of the company is 222.0. Our model calculates the value of Western Union from examining the company fundamentals such as Current Valuation of 136.83 B, profit margin of 0.20 %, and Return On Asset of 0.0639 as well as analyzing its technical indicators and probability of bankruptcy.
Undervalued
Today
222.00
Please note that Western Union's price fluctuation is very steady at this time. Calculation of the real value of Western Union is based on 3 months time horizon. Increasing Western Union's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Since Western Union is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Western Stock. However, Western Union's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
Historical Market  222.0 Real  267.57 Hype  222.0 Naive  227.12
The intrinsic value of Western Union's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Western Union's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
199.80
Downside
267.56
Real Value
269.05
Upside
Estimating the potential upside or downside of The Western Union helps investors to forecast how Western stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Western Union more accurately as focusing exclusively on Western Union's fundamentals will not take into account other important factors:
Bollinger
Band Projection (param)
LowerMiddle BandUpper
222.00222.00222.00
Details
Hype
Prediction
LowEstimatedHigh
220.52222.00223.48
Details
Naive
Forecast
LowNext ValueHigh
225.64227.12228.59
Details

Western Union Total Value Analysis

The Western Union is at this time expected to have takeover price of 136.83 B with market capitalization of 100.47 B, debt of 2.62 B, and cash on hands of 836 M. Please note that takeover price may be misleading and is a subject to mistakes in financial statements. We encourage investors to thoroughly investigate all of the Western Union fundamentals before making investing decisions based on enterprise value of the company
  Takeover PriceMarket CapDebt ObligationsCash
136.83 B
100.47 B
2.62 B
836 M

Western Union Investor Information

About 99.0% of the company outstanding shares are owned by institutional investors. The company has Price/Earnings (P/E) ratio of 196.25. Western Union recorded earning per share (EPS) of 44.32. The entity last dividend was issued on the 16th of March 2023. Based on the analysis of Western Union's profitability, liquidity, and operating efficiency, The Western Union is not in a good financial situation at the moment. It has a very high risk of going through financial straits in December.

Western Union Asset Utilization

The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Western Union has an asset utilization ratio of 52.68 percent. This suggests that the Company is making 0.53 for each dollar of assets. An increasing asset utilization means that The Western Union is more efficient with each dollar of assets it utilizes for everyday operations.

Western Union Ownership Allocation

Western Union owns a total of 373.5 Million outstanding shares. The majority of Western Union outstanding shares are owned by institutional investors. These institutions are usually referred to as non-private investors looking to purchase positions in Western Union to benefit from reduced commissions. Consequently, other corporate entities are subject to a different set of regulations than regular investors in The Western Union. Please pay attention to any change in the institutional holdings of Western Union as this could imply that something significant has changed or is about to change at the company. Note that regardless of who owns the company, if the true value of the entity is less than the market is willing to pay for it, you may not be able to generate positive returns over time.

Western Union Profitability Analysis

The company reported the revenue of 4.48 B. Net Income was 910.6 M with profit before overhead, payroll, taxes, and interest of 1.85 B.

About Western Union Valuation

Our relative valuation model uses a comparative analysis of Western Union. We calculate exposure to Western Union's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Western Union's related companies.
The Western Union Company provides money movement and payment services worldwide. The Western Union Company was founded in 1851 and is headquartered in Denver, Colorado. Western Union operates under Credit Services classification in Mexico and is traded on Mexico Stock Exchange. It employs 12000 people.

8 Steps to conduct Western Union's Valuation Analysis

Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Western Union's potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct Western Union's valuation analysis, follow these 8 steps:
  • Gather financial information: Obtain Western Union's financial statements, including balance sheets, income statements, and cash flow statements.
  • Determine Western Union's revenue streams: Identify Western Union's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
  • Analyze market data: Research Western Union's industry and market trends, including the size of the market, growth rate, and competition.
  • Establish Western Union's growth potential: Evaluate Western Union's management, business model, and growth potential.
  • Determine Western Union's financial performance: Analyze its financial statements to assess its historical performance and future potential.
  • Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
  • Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate Western Union's estimated value.
  • Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
Note: This is a general outline, and different approaches and methods may be used depending on the type and size of the company being valued. We also recomment to seek professional assistance to ensure accuracy.

Additional Tools for Western Stock Analysis

When running Western Union's price analysis, check to measure Western Union's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Western Union is operating at the current time. Most of Western Union's value examination focuses on studying past and present price action to predict the probability of Western Union's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Western Union's price. Additionally, you may evaluate how the addition of Western Union to your portfolios can decrease your overall portfolio volatility.