Roughly 10X: Still an absurdly low forward multiple
The index trades between 17X and 18X. We're providing a global financial lifeline to the world's underbanked and we're being crushed by Chipotle Mexican Grill?! :-) What is up with this?
I get that WU is in retooling mode and should probably trade somewhat below the index multiple until that is complete. But at half of it? Really? With this kind of rock-solid cash generation and this kind of shareholder friendliness? And this has been going on for months.
I agree on WU's relative valuation. Very cheap relative to peers AND its own valuation historically. It would be have nice if we had gotten a small revenue beat along with the earnings to get some multiple expansion. Still its been a laggard and in this market I'm betting that people will rotate into names like WU that still have upside in their valuation and tons of free cash flow. I'm getting a 3.5% divy (at my cost basis) so getting paid fine while I wait.