The Western Union Company (WU) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+790.1%

$56.30

vs $6.33 price

Levered DCF

$31.24

After debt service

Piotroski score

6 / 9

Average

Altman Z-score

1.03

Distress zone

Rating

A-

Overall 4 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	6.08×	3.85×	7.05×	5.86×	9.01×	12.12×	10.8×	9.03×
P/B	3.17×	3.72×	9.23×	11.16×	20.41×	48.48×	-289.9×	-24.88×
P/S	0.75×	0.86×	1.01×	1.19×	1.43×	1.87×	2.16×	1.38×
EV / EBITDA	4.82×	5.05×	5.47×	5.28×	7.41×	8.53×	7.57×	6.35×
Gross margin	28.7%	37.8%	38.7%	41.3%	42.9%	41.5%	41.7%	41.0%
Operating margin	19.4%	17.2%	18.8%	19.8%	22.1%	20.0%	17.6%	20.1%
Net margin	12.4%	22.2%	14.4%	20.3%	15.9%	15.4%	20.0%	15.2%
Current ratio	1.13×	7.12×	1.03×	0.84×	1.04×	0.93×	0.87×	0.75×
Debt / equity	3.24×	3.23×	5.23×	5.81×	9.03×	17.7×	-87.89×	-11.08×
Interest coverage	5.48×	6.06×	7.76×	8.76×	10.65×	8.16×	6.14×	7.5×
Dividend yield	10.2%	8.9%	7.9%	6.8%	5.3%	4.1%	3.0%	4.4%
Payout ratio	61.8%	34.4%	55.8%	40.0%	47.4%	49.8%	32.2%	40.1%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	52.2%	96.4%	130.7%	190.6%	226.6%	398.9%	-2679.2%	-275.0%
Return on invested capital	14.5%	9.5%	20.2%	11.2%	14.1%	20.2%	19.6%	27.1%
Return on assets	6.0%	11.2%	7.6%	10.7%	9.1%	7.8%	12.1%	9.5%
Free cash flow yield	12.9%	10.2%	14.4%	7.0%	11.4%	8.0%	6.9%	6.3%
Earnings yield	16.4%	25.9%	14.2%	17.1%	11.1%	8.2%	9.2%	11.1%
Enterprise value	$4.5B	$4.6B	$5.7B	$6.8B	$9.3B	$10.2B	$13.1B	$8.9B
Net debt / EBITDA	1.57×	1.12×	1.19×	1.15×	1.6×	0.98×	0.95×	0.86×
Cash conversion cycle (days)	93	64	-62	-64	28	21	14	26