2 models fit WEX Inc. common stock and they agree: 2 of 2 land within 15% of the average. The price is above every model.
Two or more of our models back this value.
Large premium(i)Silver66
Valued as a mature, profitable company: Discounted cash flow, P/E comparison, EV/EBITDA comparison, Graham number, and Dividend discount.
ACCE opinionWEX Inc. common stock (WEX)
Fair value (2 models)
$86.17
ACCE price target
$193
Rating
Overvalued
Horizon
12 months
Fair value published on 18 Oct 2026, 16:04 CEST; previously $111 since 14 Oct 2026, 00:00 CEST.
ACCE price target published on 10 Oct 2026, 00:00 CEST.
Rating published on 18 Oct 2026, 16:04 CEST.
Price used: $197 at the close on 23 Oct 2026, 22:00 CEST.
Models: Discounted cash flow and Graham number.
Fair value: the average of the applicable valuation models (discounted cash flow, multiples, residual income, dividend discount, shareholder yield), each run on the latest financial statements and the market price shown. Opinion columns (fair value, target, rating) are shown apart from the data. Full methodology: acceinvestments.com/data/how-we-value-stocks
Conflicts of interest: The author holds no personal position in this security. General statement
Produced by ACCE Investments (acceinvestments.com)
Data
Price vs fair value
129.2% above
-56.4% to fair value
ACCE score
81
out of 100
Analysts
33% buy
15 covering
P/E
18.7x
forward 8.6x
1-year return
+23.4%
Dividend yield
0.00%
WEX Inc. common stock in four questions
Plain answers, details below
Free accounts get 5 full stock pages a month, including the four answers.
Overview
ACCE thesis
WEX sells payment processing and fleet card programs, with its Fleet Solutions business issuing fuel and maintenance cards to commercial vehicle fleets and its Benefits and Mobility & Payments units handling employer benefit administration and B2B payment flows. The moat is switching cost: fleet operators embed WEX cards in driver workflows and accounting systems, and the company earns recurring processing fees on every transaction, which helps explain a 73.2% gross margin and 26.9% operating margin. Revenue growth of 14.2% is strong for a business this mature, and the near-term story rests on continued penetration of its payments platform in commercial fleets and a higher mix of recurring fee income. At 17.4 times trailing earnings against a forward multiple of 8.6, the market is pricing in a sharp drop in earnings or a sharp rise in growth, so the gap is the first thing to test in a deeper look. A 30.2% return on equity with a $6.2 billion market cap puts it squarely in the mid-cap quality bucket, where the question is whether the forward earnings estimate holds.
⚠ Investor warnings · 3 flagsAI-assisted·How I use AI
high
Heavy leverage on equity
Debt/Equity of 3.94 means the balance sheet carries nearly four dollars of debt for every dollar of equity, leaving little cushion if cash flow weakens.
moderate
Margin profile below peak
Net margin of 12.6% and operating margin of 26.9% sit well below the gross margin of 73.2%, so heavy operating and financing costs absorb much of the gross profit.
moderate
Revenue momentum flat QoQ
Revenue grew 14.2% year over year but only 0.1% quarter over quarter, suggesting the pace of growth has stalled in the most recent quarter.
AI research notes
AI-assisted·How I use AIWritten Oct 17, 2026 · figures from 2026-06-30 · prices to Oct 23, 2026
Why it could do well
Revenue grew 14.2% over the past year, ahead of the 11.3% annual average of the last five years.
Free cash flow over the last twelve months reached $314M, and the diluted share count fell 7.9% last fiscal year.
Analysts' mean price target of $195.36 sits 7.3% above the current share price.
Why it could disappoint
At 8.6x forward earnings, the stock trades far below the sector median of 29.5x, which may reflect real doubts about the business.
Return on invested capital is only 4.1%, far below the 30.2% return on equity, which shows profits depend heavily on borrowing.
Each chip shows the exact figure and where it comes from. A claim without a source is not published.
Next results
Oct 28, 2026
We update the fair value about 2 days after the results, once the new figures are filed.Add to calendarGoogle
Walk me through this stock
Plain-English pros, cons, and what to watch. Pro feature.
PRO
Ask ACCE
Valuation
INVESTOR
Where WEX's valuation models land
Price
$197.46
Model fair value
$86.17
Model range
$83.09 to $89.25
Fair value $86.17
Price $197
The price is above the whole model range.
Model
Fair value
Upside
Discounted cash flow
Dividend discount
EV/EBITDA comparison
Graham number
P/E comparison
Create a free account: 5 full stock pages a month, no card.
See what each model says, the assumptions behind it, the bad, normal and good cases, and why the fair value changed.
Quality
INVESTOR
Quality and conviction INVESTOR FEATURE
The full quality picture: a reason under every score, how the scores moved, and the conviction breakdown.
+A plain reason under every score
+Conviction breakdown and growth / value / quality / momentum scores