This calculator works out an equity value for money-changing app Wise based on its share of 2025 global foreign-exchange payments.
The company's customers are individuals and small businesses. So the calculator's first inputs are Wise's market share of expected 2025 global FX payments in those two categories.
The 2025 global volumes are extrapolated from forecasts in Wise's registration document. The calculator then multiplies them by the market share inputs to get Wise's 2025 payments volume.
Next, it converts those figures into revenue by applying the company's most recent full-year "take rate", which is the overall fee it charges on money transfers. Wise expects its take rate to be "broadly flat" over the medium term.
The calculator applies a 20% EBITDA margin to this revenue, based on Wise's target of "above 20% in the medium term".
It then values the resulting EBITDA on a multiple, the third and final assumption, to arrive at the company's enterprise value. The options range from Fiserv's 10 times to 30 times - a slight premium to fast-growing payments rivals Adyen and Square.
Finally, the calculator subtracts debt and adds back cash to arrive at an equity value.
For more interactive calculators and agenda-setting comment visit: BREAKINGVIEWS
The company's customers are individuals and small businesses. So the calculator's first inputs are Wise's market share of expected 2025 global FX payments in those two categories.
The 2025 global volumes are extrapolated from forecasts in Wise's registration document. The calculator then multiplies them by the market share inputs to get Wise's 2025 payments volume.
Next, it converts those figures into revenue by applying the company's most recent full-year "take rate", which is the overall fee it charges on money transfers. Wise expects its take rate to be "broadly flat" over the medium term.
The calculator applies a 20% EBITDA margin to this revenue, based on Wise's target of "above 20% in the medium term".
It then values the resulting EBITDA on a multiple, the third and final assumption, to arrive at the company's enterprise value. The options range from Fiserv's 10 times to 30 times - a slight premium to fast-growing payments rivals Adyen and Square.
Finally, the calculator subtracts debt and adds back cash to arrive at an equity value.
For more interactive calculators and agenda-setting comment visit: BREAKINGVIEWS