Honestly, I don’t get how people reach the conclusion that wise is overvalued. If you are basing this logic on PE ratio alone, that’s not a good indicator. Wise is a young company, so it’s normal for the PE to be super high, because there is a genuine expectation for the company to grow very fast (which is reasonable given wise’s track record so far). Of course, the PE is still very high even with that expectation, but so is literally the PE of any company out there at the moment.
Call me crazy, but based on wise’s growth so far, I would say the conservative fair price of a share is at lest £15.
Also, Wise is making money. If you want to scare yourself read some of these articles on the number of unicorns that have billions of dollars in debt. If the bank’s stop propping them up, it will be a massacre.
Looks like they managed to get past 8 today (and the usual, ‘I’ll sell when it gets to a whole number’ thing, what is that about anyway? You can see the tug of war going on in the charts. I’d find it amusing if it wasn’t one of main investments atm).
This is spot on and one of the main reasons I invested in Wise. Look at their balance sheet over the last few years and it simply is a good company.
The other main reason is that I have been a customer of theirs for many years and saved hundreds if not thousands of pounds in fees. So I understand their product and I understand the need of their product fully.
Valuation? Does that actually mean anything anymore? Tesla just hit one trillion…
Going off P/E ratio is very very misleading for this type of company as many people seem to be doing.
Devil’s advocate: Competition will become fierce very quickly, this is a major threat in my opinion.
I invested in Wise a few weeks after the IPO. I thought of them as a solid company, good brand, out there making a change, quite a few people using them actively. I recently published this article, aptly titled “A Wise Investment” which walks through a high-level summary of my analysis of Wise finances. Minor self-promo here but not trying persuade anyone. You invest in whatever you want, but I thought it might be helpful content. It isn’t my complete analysis, but I think the summary drives home that I think Wise is a good business to consider.
Inspired by @alan.ws I thought I’d write my own piece on Wise:
I actually reference one of your charts @alan.ws . Mind showing me how you got financial date going back to 2015? I use Yahoo Finance which only goes back 3 years
I’m a techie at heart, so this article is less about financials and more about the technical advantage Wise has (I do talk about financials, just not very much).
Hey @beatrice , all startups (companies) need to file accounts with Companies House - WISE PAYMENTS LIMITED filing history - Find and update company information - GOV.UK - so you can do a little digging round and find the information out there. Yahoo etc. only tend to list publicly trading companies. My focus is startups, and especially the ones that are near to IPO or recently IPO or potential IPO candidates.
I now finally understand why they rebranded. I have been using wise for 3 years now and would not be able to manage my finances without them, or paying 10x more in fees.
I enjoyed having my morning brew to that and went to subscribe but $70 is a bit steep. A shame the platform doesn’t do a smaller sub or tip for individual articles etc as I daren’t start paying for handful of articles or I would go bankrupt Or is the sub for the whole site?
I did try to give a gift but turns out that is a full sub to give as gift to someone else and not a “tip” for the writer. Again a great read!!
Update: This is July - Sept, they just tweeted it so thought I’d share
Wise Q3 update
TL;DR the fees went down, more transfers were instant, employee expenses made easier, UK customers have assets.
Fees are now lower for 1.7 million of you : Our average fee dropped from 0.67% to 0.62%. That means better deals on 100s of currency routes.
40% of all transfers arrived instantly: Our fastest yet — and up from 38%.
UK customers can grow their money: Those in the UK can now put their money to work, while still being able to spend and send as normal.
Employees expenses made easier: Your team can now spend directly from the business account and view their own transactions. Within the limits, you set, of course.
In my latest video I analyse Wise stock (£WISE) using fundamental analysis. Is WISE stock a buy?
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I go through Wise’s business summary, sales breakdown & financial statements to get an understanding of the business. After this, I go through my analysis checklist and then value Wise stock using the discounted free cashflow method.
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Wise (formerly TransferWise) is a London-based financial technology company founded by Estonian businessmen Kristo Käärmann and Taavet Hinrikus in January 2011.
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Wise makes it fast, easy and cheap for you to send money abroad. Wise has some of the lowest fees in the currency exchange industry, which has made them one of the biggest international money transfer providers in the world. They have millions of customers and handle billions in transactions every year.
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Wise became a public company through a direct listing in London on 7 July 2021. In contrast to a traditional IPO, Wise opted for a direct listing. The company said that this was the fairer, cheaper and more transparent way for them to broaden their ownership.
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Please also remember to like and comment, if you enjoyed the video!
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Subscribe to Lewis Harding Invest on YouTube.
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Or is the sub for the whole site?
Again a great read!!
