• Wondering whether Webull's share price reflects its true worth, or if the market is mispricing it? This article walks through the key valuation angles you need to see for yourself.
• Webull's stock last closed at US$6.91, with returns of 6.6% over the past week and 34.7% over the past month, while the 1 year return sits at a loss of 64.6%.
• Recent headlines around Webull have focused on the stock's sharp swings and what that might imply for investor sentiment and risk appetite. These moves put an extra spotlight on whether the current price is sensible when lined up against the business fundamentals.
• Right now, Webull holds a value score of 2 out of 6. The next sections will break down the standard valuation checks behind that score and then finish with a more complete way to think about what the stock could be worth.

Webull scores just 2/6 on our valuation checks. See what other red flags we found in the full valuation breakdown.

Approach 1: Webull Discounted Cash Flow (DCF) Analysis

A Discounted Cash Flow, or DCF, model estimates what a business could be worth by projecting its future cash flows and discounting them back to today to reflect risk and the time value of money.

For Webull, the model used is a 2 Stage Free Cash Flow to Equity approach based on cash flow projections. The latest twelve month free cash flow is about $561.4 million. Simply Wall St then projects free cash flow out to 2035 using analyst inputs for the earlier years and extrapolated estimates beyond the typical 5 year window, with projected free cash flow in 2035 of about $937.5 million before discounting. Each of these future cash flows is discounted back to today to arrive at an estimated intrinsic value per share.

Using these projections, the DCF model suggests an intrinsic value of about US$28.31 per share. Compared to the recent share price of US$6.91, this output implies the stock is around 75.6% undervalued on this measure.

Result: UNDERVALUED

Our Discounted Cash Flow (DCF) analysis suggests Webull is undervalued by 75.6%. Track this in your watchlist or portfolio, or discover 54 more high quality undervalued stocks.

Approach 2: Webull Price vs Sales

For companies where profits are limited or volatile, the P/S ratio is often more useful than earnings based metrics because it compares the share price to revenue, which tends to be more stable than earnings.

Growth expectations and risk still matter, since faster growing or lower risk businesses often trade on higher P/S multiples, while slower or higher risk ones can sit on lower P/S levels. So you need to judge the current multiple against what would be reasonable for a company with similar characteristics.

Webull trades on a P/S of 6.65x. This sits above both the Capital Markets industry average P/S of 3.61x and the peer average of 1.84x. Simply Wall St also calculates a proprietary Fair Ratio of 3.24x for Webull. This Fair Ratio is designed to be more tailored than a simple peer or industry comparison because it factors in elements such as growth profile, profit margins, risk, industry group and market cap.

Comparing the current 6.65x P/S to the Fair Ratio of 3.24x suggests that Webull is trading at a richer level than what that model indicates is typical.

Result: OVERVALUED

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Upgrade Your Decision Making: Choose your Webull Narrative

Earlier it was mentioned that there is an even better way to understand valuation. Narratives bring that to life by letting you attach a clear story about Webull, including your assumptions for future revenue, earnings, margins and fair value, to the hard numbers.

A Narrative connects three pieces in one place: the business story you believe, the financial forecast that fits that story and the fair value that drops out of those numbers. This allows you to quickly see whether the current share price looks high or low against your own view.

On Simply Wall St, Narratives sit in the Community page and are designed to be easy to use. You choose or adjust assumptions, see the implied fair value and then compare it with the live price to help decide whether the stock looks closer to a buy, a hold or a sell for your situation.

Narratives are also kept fresh as new data appears. When Webull reports earnings or features like zero commission trading in Canada, global expansion and prediction markets hit the news, the underlying forecasts and fair values shown in the community, such as US$9.00 on the bearish side and US$14.00 on the bullish side around a consensus of US$11.67, are updated to reflect that information.

Do you think there's more to the story for Webull? Head over to our Community to see what others are saying!

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.