Wise 💰➡️🌍 - £WISE - Share chat

So are simplywallstreet saying a fair value for N26 is £80bn? If i misunderstood this then it’s cos i just glanced at the graphic and came to my own conclusion, rather than reading the website :cowboy_hat_face:

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N26? SWS does a DCF analysis to arrive at the fair price, which is based on equity growth as far as I understand. You can see the workings on their website.

Tbf, £85 per share seems insanely high to me. But 2 months ago it was £5, which was way too little for how well Wise has been doing (the company, not the stock). So maybe they just had more analysts look at it? :man_shrugging:t2:

I guess the obvious question is, if the graphic was to be considered correct, what is the market missing?
It is very rare for the market to ‘miss’ or severely undervalue a stock so what is it that isn’t liked?
I don’t have the answer - I m baffled by why a company that is actually making good money keeps getting hammered.

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Does anyone know how low Wise could drop down?

How low? Zero if it goes bankrupt

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I send monthly by SWIFT through Wise. It is essential for remittances. Swift from UK to Aus clears in the recipient account the same day. Much cheaper than the bank!

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This stock baffles me honestly. I keep researching, I keep liking what I see, I keep thinking: Wow, everyone is missing something here, time to load up.
And then it drops. And drops. And drops.
If it’s a phase where it’s being sold because it’s a tech stock, it’s ‘European’ (kind of), etc etc then I’m fine with it.

But maybe it’s not everyone else missing something - maybe it’s me?

On another note: Wise is a terrible name. Doing an effective search using the word ‘Wise’ makes life really difficult😄

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Agree Wise name is unhelpful for the reason you gave. I preferred TransferWise.

I have always been impressed with their service. It does what it says. Their business is simple to understand and they are good at it even in the face of Paypal and banks. Their debit card is a work of genius.

I don’t understand why the stock is low. But so is Paypal.

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If you do dig deep enough you will find that certain banks around the world are trying there upmost to block money transfers, I visit Thailand alot and two of my banks I use will not allow the maximum of B2,000,000 to be transfered by Wise.

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I got the same - but bit the bullet - I am tempted to get back in at an even better price and hope for a recovery. I wonder if they will honour their original commitment to provide additional shares after a year?

I use Wise in thailand a lot to fund my pre-paid card.

The cheap money transfer horse has already bolted. Banks are just trying to keep it all in-house. Like Barclay’s Bank and their near unusable attempt to replicate Wise last year.

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This company must be poorly run the share price has constantly gone down.

This is a poor take. Did you think Wise was well run when the share price went up until September 2021, and then poorly run thereafter? What changed?

Share prices change depending on the whims of the market. Maybe its initial listing was way overhyped to retail investors. Maybe its just interest rates rising generally globally which has made a 3 digit PE ratio hard to sustain.

This was their last investor update from January showing 34% revenue growth YoY - January 2022 Trading Update - Wise, formerly TransferWise

I think their business is solid, and their b2b strategy will create long term sticky growth, which is less impacted by the whims of the consumer market.

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Folks, does anyone know what is causing this slide? It looks like a fast growing, profitable business buy SP doesn’t read it that way…

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It’s pretty simple! Wise’s FCF multiple is just far too high and it is now reverting back to the mean.

They’re a great business, growing nicely and are profitable & free cash flow positive.

IPOs sadly generate a lot of hype and people
get caught up amongst that. As such they will pay any price for the stock.

As Howard Marks says - “It’s not what you buy, it’s what you pay”

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Got this email…really quite disappointing, I will close down my Euros account and move it, 0.9%p.a. is extortion.
I obviously understand why they have to do it from an investor perspective but from a customer perspective it’s a no brainer to move on.
Will be looking to see if fees remain competitive for transfers.
From an investing POV the headwinds are concerning me I have to be honest.

Since my last comment, Wise have fallen by another ~25%.

I now think it looks pretty cheap for a company growing as it is. So I went in today at £3.42. Their year end results are due 28th June.

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Do you think theres a network effect to their business? More volume/users=better liquidity/rates?
If this is the case, with enough volume, could Wise take the role of a global correspondent bank to settle cross currency payments for banks on a wholsesale basis? Would this require more customer deposits to be kept in Wise? Is this why they are pursuing bank accounts? My understanding is there arent many correspondent banks with a global presence.

I keep increasing my stake at regular intervals (I want £WISE to be a certain fixed percentage of my portfolio). The good news is that I’m getting more shares for the same price I guess.

I’ve been believing in this company since 2016, so I bought as soon as they did their IPO. I believe that as people start travelling again their Borderless services will increase revenues a lot. I honestly do not know what the market, or me, might be missing here. But… I’ve taken bigger risks on things I liked ten times less than Wise. See y’all in 2030 :slight_smile:

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Why does this have a three digit a P/E? Isn’t this high for a financial service. SimplywallSt has this at 111.