Wework Inc Intrinsic Value Calculation – WeWork Prices Fall 1.73% as Investors Question Overvaluation
July 8, 2023
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WEWORK ($NYSE:WE): WeWork Inc. is a US-based real estate company that specializes in shared workspaces. On Friday, June 30, WeWork Inc.’s stock price fell by 1.73% from the previous day’s close, raising questions regarding whether or not the company is overvalued compared to its competitors. This drop in stock value has caused analysts to closely examine the company’s long-term prospects and financials in order to determine if the current valuation is justified. Analysts have suggested that WeWork Inc. is valued much higher than many of its competitors, which has made investors wary of the stock. This could be due to the company’s rapid expansion in recent years, which has led to higher costs and lower revenues.
Additionally, the company is facing a large amount of competition in the shared workspaces market, which has also put downward pressure on its stock price. Despite the recent drop in stock price, the company still has a promising future ahead of it. WeWork Inc. is continuing to expand its presence globally and is looking to capitalize on its strong brand recognition. The company is also focused on improving efficiency and developing innovative products and services. If the company can successfully execute on its growth strategy, investors may have reason to believe that the stock is undervalued and that the current market price is an attractive opportunity.
Analysis – Wework Inc Intrinsic Value Calculation
At GoodWhale, we recently conducted an analysis of WEWORK INC‘s wellbeing. Our proprietary Valuation Line revealed that the intrinsic value of WEWORK INC shares is around $2.6. However, the current stock price of WEWORK INC is $0.3, indicating that it is undervalued by 88.5%. This figure highlights the potential investment opportunity that WEWORK INC presents to potential investors. More…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Wework Inc. More…
| Total Revenues | Net Income | Net Margin |
| 3.33k | -1.86k | -45.4% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Wework Inc. More…
| Operations | Investing | Financing |
| -679 | -267 | 728 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Wework Inc. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 16.95k | 20.73k | -5.57 |
Key Ratios Snapshot
Some of the financial key ratios for Wework Inc are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -2.1% | – | -52.8% |
| FCF Margin | ROE | ROA |
| -30.1% | 28.8% | -6.5% |
Peers
The company has a network of over 200 physical locations in more than 50 cities around the world. WeWork Inc. has raised over $10 billion from investors including SoftBank, Benchmark, and T. Rowe Price. The company’s main competitors are Doma Holdings Inc, Eik fasteignafelag hf, Elkop SA.
– Doma Holdings Inc ($NYSE:DOMA)
Doma Holdings Inc is a real estate investment trust that primarily focuses on the ownership and management of multifamily properties. As of 2022, the company has a market capitalization of 165.34 million and a return on equity of -36.57%. The company’s portfolio consists of properties in the United States and Canada.
– Eik fasteignafelag hf ($LTS:0R70)
Eik fasteignafelag hf is a publicly traded real estate company based in Iceland. The company’s primary business is the development, ownership, and operation of commercial real estate properties in Iceland. As of December 31, 2020, the company’s portfolio consisted of office buildings, retail properties, and industrial warehouses.
Eik fasteignafelag hf has a market cap of 42.01B as of 2022. The company has a Return on Equity of 19.8%. Eik fasteignafelag hf is a publicly traded real estate company based in Iceland. The company’s primary business is the development, ownership, and operation of commercial real estate properties in Iceland. As of December 31, 2020, the company’s portfolio consisted of office buildings, retail properties, and industrial warehouses.
– Elkop SA ($LTS:0LT6)
Elkop SA is a Polish company that specializes in the manufacture of electrical equipment. The company has a market cap of 18.33M as of 2022 and a Return on Equity of 6.08%. Elkop SA’s products include switches, sockets, and other electrical accessories. The company has been in business since 1967 and employs over 500 people.
Summary
Investors are concerned about WeWork Inc.’s current valuation, as its stock price has fallen by 1.73% in the last trading day. Analysts are divided on the long-term prospects of the company, with some believing that its current market valuation is overvalued compared to similar companies. Investors should do their own due diligence and research when considering investing in WeWork Inc., as the company faces a variety of risks, including potential regulatory changes and the ever-changing nature of the office-sharing industry. Additionally, investors should ensure the stock is properly diversified in their portfolio to mitigate risk.
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