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Valued as a growth company: Discounted cash flow, P/E comparison, and EV/EBITDA comparison.
ACCE opinionWarby Parker Inc. Class A Common Stock (WRBY)
Fair value (3 models)
Not available
ACCE price target
$24.00
Rating
Not rated
Horizon
12 months
ACCE price target published on 11 Oct 2026, 00:00 CEST.
Price used: $25.91 at the close on 23 Oct 2026, 22:00 CEST.
Models: Discounted cash flow, EV/EBITDA comparison, and P/E comparison.
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
ACCE score
45
out of 100
Analysts
71% buy
14 covering
P/E
431.8x
forward 42.1x
1-year return
+16.9%
Dividend yield
0.00%
Warby Parker Inc. Class A Common Stock in four questions
Plain answers, details below
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Overview
ACCE thesis
Warby Parker sells eyeglasses, sunglasses and contact lenses under its own brand, mostly direct to consumers through roughly 300 owned stores and its website, with a growing optometry and eye-exam business attached. The structural case rests on a 53.1% gross margin, which is high for a retailer and reflects owning the design, sourcing and distribution chain rather than buying branded frames at wholesale. Revenue is growing 9.8%, but the operating margin is still -3.6%, so the company has not yet shown it can convert that gross profit into earnings at scale. At a forward P/E of 54.3 against a trailing 409.8, the market is pricing in a sharp earnings ramp that the current numbers do not yet show, and with ROE at 2.1% and no index membership, the name needs to clear a high bar before it earns a position. A deeper look is worth it only if the store-level economics and the path to operating breakeven hold up in the filings.
⚠ Investor warnings · 4 flagsAI-assisted·How I use AI
high
Earnings declining despite revenue growth
Revenue grew 9.8% year over year, but earnings fell 9.6%. Operating margin is -3.6% and net margin only +0.9%, so growth is not reaching the bottom line.
high
Heavy short interest
Short interest stands at 20.9% of ownership. Insiders recorded $6.44M in sales and no buys across the last 10 disclosed transactions.
moderate
Valuation stretched on earnings
Trailing P/E is 427.0 and EV/EBITDA is 51.7. The price sits 8.0% above the $24.00 ACCE price target, which also marks the stock as expensive against our own target.
moderate
ACCE score drifting lower
The composite score fell from 41 to 38 over 90 days. Valuation sub-score is weakest at 21, while quality is 42 and momentum 47.
AI research notes
AI-assisted·How I use AIWritten Oct 21, 2026 · figures from 2026-06-30 · prices to Oct 23, 2026
Why it could do well
Revenue grew 9.8% over the past year, and the five-year average growth rate is 17.2% per year.
Analysts rate the stock Buy or Strong Buy 71% of the time, and their mean price target sits 18.9% above the share price.
Free cash flow over the last 12 months reached $44M, showing the business generates real cash.
Why it could disappoint
Net margin is only 0.9% and return on invested capital is 0.2%, so little profit comes from the money the business uses.
The trailing P/E is 427.0x, against a forward P/E of 41.7x compared with a sector median of 24.1x.
The diluted share count rose 3.9% last fiscal year, so each share now represents a smaller slice of the company.
Each chip shows the exact figure and where it comes from. A claim without a source is not published.
Next results
Nov 5, 2026
We update the fair value about 2 days after the results, once the new figures are filed.Add to calendarGoogle
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Valuation
INVESTOR
Where WRBY's valuation models land
Price
$25.91
Model fair valueConfidence: medium
$10.10
Model
Fair value
Upside
Discounted cash flow
EV/EBITDA comparison
P/E comparison
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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