Event driven move in WD-40 stock

WD-40 (WDFC) is back in focus after Q2 2025 results, where sales growth of 5% missed forecasts, but earnings per share beat expectations, full year profit guidance was raised, and a dividend was declared.

At a share price of US$201.37, WD-40 has given investors a modest 2.34% year to date share price return, while the 1 year total shareholder return has declined 16.76%. This suggests recent momentum has faded despite longer term 3 year total shareholder returns of 9.70%.

If this mix of steady cash generation and softer recent returns has you thinking about where else capital could work, it may be worth scanning 18 top founder-led companies

With sales growth of 6.03%, profit growth of 7.03% and Wall Street targets sitting above the current US$201.37 share price, the key question now is simple: is there still a buying opportunity here, or is the market already pricing in future growth?

Most Popular Narrative: 19.3% Undervalued

With WD-40 trading at $201.37 against a narrative fair value of $249.50, the current price sits below what this widely followed framework suggests, which puts the focus on what is driving that gap.

The company's focus on premiumization of products, with targets for a compound annual growth rate for premium products exceeding 10%, is poised to improve net margins by shifting the product mix towards higher-margin offerings.
WD-40’s strategy to divest its less profitable home care and cleaning brands is expected to position the company as a higher growth and higher gross margin enterprise, ultimately boosting operational margins and net margins once complete.

Want to see what kind of revenue path and earnings uplift need to materialise to back that $249.50 fair value? The narrative leans on a specific growth rate, a modest margin step up, and a premium P/E that is usually reserved for much faster growing companies. Curious how those ingredients combine into one valuation story?

Result: Fair Value of $249.50 (UNDERVALUED)

However, this hinges on the planned divestiture progressing smoothly and on foreign currency swings not eroding the revenue and margin assumptions behind that US$249.50 fair value.

Another View: High P/E Points To Rich Pricing

That 19.3% “undervalued” narrative sits awkwardly next to the current 34x P/E, which is more than double the Global Household Products average of 17.7x and well above a 14.2x fair ratio. At this kind of premium, the real risk may be that expectations are already doing most of the work.

Next Steps

With such mixed messages on value and expectations, it helps to move quickly and test the assumptions yourself rather than rely on headlines. To see what the market is currently rewarding in WD-40, start with the 2 key rewards

Looking for more investment ideas?

If WD-40 has sharpened your focus, do not stop here. Broaden your watchlist now so you do not miss the next opportunity that fits your style.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.