TGM's two-stage DCF values Wix.com Ltd. (WIX) between $104.15 and $198.69 depending on assumptions, with a base case of $142.31. Growth is taken from the company's own record (5-year revenue CAGR (FCF growth too volatile to use)), fading to 2.5% long-run; the discount rate (8.8%) reflects its beta.
What would today's price require?
$74.13 is justified only if free cash flow grows about -0.5% a year (fading to 2.5% long-run) at a 8.8% required return — slower than the company has actually grown.
| Scenario | FCF growth (fading to 2.5%) | Discount | Value / share |
|---|---|---|---|
| Conservative | 10.1%/yr | 9.8% | $104.15 |
| Base case | 13.1%/yr | 8.8% | $142.31 |
| Optimistic | 16.1%/yr | 7.8% | $198.69 |
Current Price
$74.13
Market-Implied Growth
-0.5%/yr
vs +13.1% 5Y actual
Model Scenario Range
$104.15 – $198.69
model output — not a price target
Edit the assumptions to see how they change the estimated fair value. Opens seeded with TGM's data-driven base case for WIX (growth from its own 5-year record, discount from its beta), so the sandbox starts where the scenarios above leave off. Illustrative model — not investment advice.
Base inputs: FCF $330.9M · 0.05B shares · net debt $857.5M
Estimated Fair Value
$142.31
+92.0% vs $74.13
How the estimated fair value shifts with the discount rate (WACC) and terminal growth, holding your 13.1%/yr FCF growth and 10-year horizon fixed. Green = above today's $74.13; red = below. Your current case is outlined.
| WACC ↓ / Terminal → | 1.50% | 2.00% | 2.50% | 3.00% | 3.50% |
|---|---|---|---|---|---|
| 6.8% | $181 | $199 | $220 | $248 | $284 |
| 7.8% | $148 | $160 | $174 | $191 | $212 |
| 8.8% | $124 | $133 | $142 | $154 | $167 |
| 9.8% | $106 | $112 | $119 | $128 | $137 |
| 10.8% | $91.89 | $96.69 | $102 | $108 | $115 |
