The Western Union Company

Financial ServicesFinancial - Credit ServicesNYSE

$8.44

Market Cap: $2.64B

The Western Union Company (WU) Valuation Summary

Updated Apr 6, 2026 22:29

Model	Range	Fair Value	Upside
▸ Discounted Cash Flow
Growth Exit 5Y	$28.53 – $111.20	$44.18	+403.1%
Growth Exit 10Y	$24.39 – $80.20	$35.22	+301.1%
EBITDA Exit 5Y	$14.32 – $32.41	$22.59	+157.3%
EBITDA Exit 10Y	$17.39 – $32.78	$23.94	+172.7%
▸ Trading Multiples
P/E	$14.96 – $20.18	$21.46	+144.4%
EV/EBITDA	$21.10 – $38.04	$30.44	+246.7%
EV/Revenue	$24.96 – $45.32	$34.91	+297.6%
▸ PEG
PEG Fair Value	$25.25 – $25.25	$25.25	+187.6%
▸ Earnings Power Value
Earnings Power Value	$24.47 – $35.14	$28.71	+227.0%
▸ Dividend Discount
Dividend Discount	$12.72 – $33.52	$17.93	+104.2%

Valuation History

DCF Analysis

Fair Value

$44.18

Market Price

$8.44

Upside / Downside

+423.4%

Verdict

Undervalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project The Western Union Company's cash flows over 5 years with line-by-line expense modeling. Revenue is projected revenue growing from 5.5% to -5.0% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 121, DPO 60, DIO 60). At a 7.3% WACC with mid-year discounting, the terminal value (86% of enterprise value) is derived from the Gordon Growth Model on Year 6 FCFF at a 2.5% perpetual rate. After subtracting net debt, the equity value implies a fair price of $44.18 per share, suggesting WU is undervalued by 423.4% at the current price of $8.44.

FCFF Present Value Calculation

WACC

7.32%

3% – 20%

Terminal Growth

2.50%

0% – 6%

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	Terminal
Profit Before Tax	640	670	687	619	588	602
(−) Net Interest	112	117	120	108	103	105
(+) D&A	152	138	126	128	148	152
EBITDA	904	925	933	854	838	859

(−) Tax	11	12	12	11	10	11
(−) CapEx	144	151	155	139	132	136
(−) ΔWC	1,413	65	38	-151	-68	-70
Free Cash Flow (FCFF)	-664	697	729	855	764	783

Terminal Value						16,253
WACC / Discount Rate	7.3%
Long-term Growth Rate	2.5%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5
Present Value of FCF	-641	627	611	668	556	11,417

Enterprise Value	13,238
Projection Period	1,821	13.8%
Terminal Value	11,417	86.2%

(−) Current Net Debt	(1,234)

Equity Value	14,472
(/) Outstanding Shares	328

Fair Price	$44.18

Sensitivity Analysis

WACC \ Terminal Growth Rate	1.5%	2.0%	2.5%	3.0%	3.5%
5.3%	$58	$65	$75	$89	$111
6.3%	$46	$50	$56	$63	$72
7.3%	$38	$41	$44	$48	$53
8.3%	$33	$35	$37	$39	$42
9.3%	$29	$30	$31	$33	$35

Current price: $8.44. Green = undervalued, Red = overvalued.

Fair Value

$35.22

Market Price

$8.44

Upside / Downside

+317.3%

Verdict

Undervalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project The Western Union Company's cash flows over 10 years with analyst estimates for the first 3–5 years, fading toward long-term GDP growth for the remaining years with line-by-line expense modeling. Revenue is projected revenue growing from 5.5% to 1.6% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 121, DPO 60, DIO 60). At a 7.3% WACC with mid-year discounting, the terminal value (63% of enterprise value) is derived from the Gordon Growth Model on Year 11 FCFF at a 2.5% perpetual rate. After subtracting net debt, the equity value implies a fair price of $35.22 per share, suggesting WU is undervalued by 317.3% at the current price of $8.44.

FCFF Present Value Calculation

WACC

7.32%

3% – 20%

Terminal Growth

2.50%

0% – 6%

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	2031	2032	2033	2034	2035	Terminal
Profit Before Tax	640	670	687	619	588	564	548	542	542	551	565
(−) Net Interest	112	117	120	108	103	99	96	95	95	96	99
(+) D&A	152	138	126	128	148	144	141	135	129	125	128
EBITDA	904	925	933	854	838	806	785	772	766	773	792

(−) Tax	11	12	12	11	10	10	10	9	10	10	10
(−) CapEx	144	151	155	139	132	127	123	122	122	124	127
(−) ΔWC	1,413	65	38	-151	-68	-53	-33	-15	2	19	19
Free Cash Flow (FCFF)	-664	697	729	855	764	723	685	655	633	620	636

Terminal Value											13,191
WACC / Discount Rate	7.3%
Long-term Growth Rate	2.5%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5.5	6.5	7.5	8.5	9.5	5
Present Value of FCF	-641	627	611	668	556	490	433	386	347	317	6,509

Enterprise Value	10,303
Projection Period	3,794	36.8%
Terminal Value	6,509	63.2%

(−) Current Net Debt	(1,234)

Equity Value	11,537
(/) Outstanding Shares	328

Fair Price	$35.22

Sensitivity Analysis

WACC \ Terminal Growth Rate	1.5%	2.0%	2.5%	3.0%	3.5%
5.3%	$47	$51	$58	$66	$80
6.3%	$38	$40	$44	$48	$53
7.3%	$32	$33	$35	$38	$40
8.3%	$28	$29	$30	$31	$33
9.3%	$24	$25	$26	$27	$28

Current price: $8.44. Green = undervalued, Red = overvalued.

Fair Value

$22.59

Market Price

$8.44

Upside / Downside

+167.7%

Verdict

Undervalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project The Western Union Company's cash flows over 5 years with line-by-line expense modeling. Revenue is projected revenue growing from 5.5% to -5.0% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 121, DPO 60, DIO 60). At a 7.3% WACC with mid-year discounting, the terminal value (70% of enterprise value) is derived by applying the industry peer median EV/EBITDA multiple of 7.2x to Year 6 EBITDA. After subtracting net debt, the equity value implies a fair price of $22.59 per share, suggesting WU is undervalued by 167.7% at the current price of $8.44.

FCFF Present Value Calculation

WACC

7.32%

3% – 20%

EV/EBITDA Exit Multiple

7.20x

1x – 40x

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	Terminal
Profit Before Tax	640	670	687	619	588	602
(−) Net Interest	112	117	120	108	103	105
(+) D&A	152	138	126	128	148	152
EBITDA	904	925	933	854	838	859

(−) Tax	11	12	12	11	10	—
(−) CapEx	144	151	155	139	132	—
(−) ΔWC	1,413	65	38	-151	-68	—
Free Cash Flow (FCF)	-664	697	729	855	764	—

Peers' EBITDA Multiple						7.2x
Terminal Value						6,186
WACC / Discount Rate	7.32%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5
Present Value of FCF	-641	627	611	668	556	4,346

Enterprise Value	6,166
Projection Period	1,821	29.5%
Terminal Value	4,346	70.5%

(−) Current Net Debt	(1,234)
Equity Value	7,401
(÷) Outstanding Shares	328M
Fair Price	$23	+167.7%

Sensitivity Analysis

WACC \ EV/EBITDA Exit Multiple	3.2x	5.2x	7.2x	9.2x	11.2x
5.3%	$16	$20	$24	$28	$32
6.3%	$16	$20	$23	$27	$31
7.3%	$15	$19	$23	$26	$30
8.3%	$15	$18	$22	$25	$29
9.3%	$14	$18	$21	$24	$28

Current price: $8.44. Green = undervalued, Red = overvalued.

Based on default parameters

Fair Value

$23.94

Market Price

$8.44

Upside / Downside

+183.6%

Verdict

Undervalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project The Western Union Company's cash flows over 10 years with analyst estimates for the first 3–5 years, fading toward long-term GDP growth for the remaining years with line-by-line expense modeling. Revenue is projected revenue growing from 5.5% to 1.6% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 121, DPO 60, DIO 60). At a 7.3% WACC with mid-year discounting, the terminal value (43% of enterprise value) is derived by applying the industry peer median EV/EBITDA multiple of 7.2x to Year 11 EBITDA. After subtracting net debt, the equity value implies a fair price of $23.94 per share, suggesting WU is undervalued by 183.6% at the current price of $8.44.

FCFF Present Value Calculation

WACC

7.32%

3% – 20%

EV/EBITDA Exit Multiple

7.20x

1x – 40x

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	2031	2032	2033	2034	2035	Terminal
Profit Before Tax	640	670	687	619	588	564	548	542	542	551	565
(−) Net Interest	112	117	120	108	103	99	96	95	95	96	99
(+) D&A	152	138	126	128	148	144	141	135	129	125	128
EBITDA	904	925	933	854	838	806	785	772	766	773	792

(−) Tax	11	12	12	11	10	10	10	9	10	10	—
(−) CapEx	144	151	155	139	132	127	123	122	122	124	—
(−) ΔWC	1,413	65	38	-151	-68	-53	-33	-15	2	19	—
Free Cash Flow (FCF)	-664	697	729	855	764	723	685	655	633	620	—

Peers' EBITDA Multiple											7.2x
Terminal Value											5,702
WACC / Discount Rate	7.32%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5.5	6.5	7.5	8.5	9.5	5
Present Value of FCF	-641	627	611	668	556	490	433	386	347	317	2,814

Enterprise Value	6,607
Projection Period	3,794	57.4%
Terminal Value	2,814	42.6%

(−) Current Net Debt	(1,234)
Equity Value	7,842
(÷) Outstanding Shares	328M
Fair Price	$24	+183.6%

Sensitivity Analysis

WACC \ EV/EBITDA Exit Multiple	3.2x	5.2x	7.2x	9.2x	11.2x
5.3%	$21	$24	$27	$30	$33
6.3%	$20	$23	$25	$28	$31
7.3%	$19	$22	$24	$26	$29
8.3%	$18	$20	$23	$25	$27
9.3%	$17	$19	$21	$23	$25

Current price: $8.44. Green = undervalued, Red = overvalued.

Based on default parameters

Trading Multiples

Fair Value

$21.20

Market Price

$8.44

Upside / Downside

+151.2%

Verdict

Undervalued

Using the industry peer median P/E Multiples multiple (trailing + forward), The Western Union Company (WU) has a fair value of $21.20 based on 10 comparable companies in the Financial - Credit Services industry.

P/E Valuation — Financial - Credit Services

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing P/E	Forward P/E
The Western Union CompanyWU	2,765	5.5x	4.8x
Stifel Financial Corp.SF	11,323	12.4x	15.0x
Zions Bancorporation, National AssociationZION	8,721	9.8x	12.1x
WSFS Financial CorporationWSFS	3,684	13.2x	14.9x
Enova International, Inc.ENVA	3,471	12.0x	15.7x
Brighthouse Financial, Inc.BHF	3,440	10.4x	2.0x
Bread Financial Holdings, Inc.BFH	3,428	6.9x	10.8x
WesBanco, Inc.WSBC	3,373	15.5x	16.5x
NMI Holdings, Inc.NMIH	2,887	7.7x	8.3x
eToro Group Ltd.ETOR	2,526	13.3x	13.3x
The Bancorp, Inc.TBBK	2,467	11.4x	14.5x
Industry Median		11.7x	13.9x
(*) Profit after tax		500	577
Equity Value		5,845	8,043
(/) Outstanding shares		328	328
Fair Price		$18	$25

Selected Fair Value (avg of trailing + forward)

$21.20

+151.2%

Fair Value

$30.49

Market Price

$8.44

Upside / Downside

+261.2%

Verdict

Undervalued

Using the industry peer median EV/EBITDA multiple (trailing + forward), The Western Union Company (WU) has a fair value of $30.49 based on 10 comparable companies in the Financial - Credit Services industry.

EV/EBITDA Valuation — Financial - Credit Services

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/EBITDA	Forward EV/EBITDA
The Western Union CompanyWU	2,765	1.6x	1.5x
Stifel Financial Corp.SF	11,323	12.0x	13.9x
Zions Bancorporation, National AssociationZION	8,721	7.9x	12.6x
WSFS Financial CorporationWSFS	3,684	6.5x	9.2x
Enova International, Inc.ENVA	3,471	15.0x	17.8x
Brighthouse Financial, Inc.BHF	3,440	1.9x	1.4x
Bread Financial Holdings, Inc.BFH	3,428	6.1x	7.3x
WesBanco, Inc.WSBC	3,373	15.5x	39.5x
NMI Holdings, Inc.NMIH	2,887	6.2x	7.7x
eToro Group Ltd.ETOR	2,526	5.8x	6.1x
The Bancorp, Inc.TBBK	2,467	9.5x	14.2x
Industry Median		7.2x	10.9x
(*) EBITDA		934	989
= Enterprise Value		6,729	10,777
(-) Net Debt		-1,234	-1,234
Equity Value		7,963	12,011
(/) Outstanding shares		328	328
Fair Price		$24	$37

Selected Fair Value (avg of trailing + forward)

$30.49

+261.2%

Fair Value

$34.97

Market Price

$8.44

Upside / Downside

+314.3%

Verdict

Undervalued

Using the industry peer median EV/Revenue multiple (trailing + forward), The Western Union Company (WU) has a fair value of $34.97 based on 10 comparable companies in the Financial - Credit Services industry.

EV/Revenue Valuation — Financial - Credit Services

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/Revenue	Forward EV/Revenue
The Western Union CompanyWU	2,765	0.4x	0.4x
Stifel Financial Corp.SF	11,323	1.8x	2.1x
Zions Bancorporation, National AssociationZION	8,721	2.1x	3.3x
WSFS Financial CorporationWSFS	3,684	2.0x	2.8x
Enova International, Inc.ENVA	3,471	2.5x	3.0x
Brighthouse Financial, Inc.BHF	3,440	0.2x	0.1x
Bread Financial Holdings, Inc.BFH	3,428	0.9x	1.1x
WesBanco, Inc.WSBC	3,373	3.4x	8.6x
NMI Holdings, Inc.NMIH	2,887	4.6x	5.8x
eToro Group Ltd.ETOR	2,526	1.7x	1.8x
The Bancorp, Inc.TBBK	2,467	4.2x	6.2x
Industry Median		2.0x	2.9x
(*) Revenue		4,041	4,276
= Enterprise Value		8,113	12,329
(-) Net Debt		-1,234	-1,234
Equity Value		9,348	13,564
(/) Outstanding shares		328	328
Fair Price		$29	$41

Selected Fair Value (avg of trailing + forward)

$34.97

+314.3%

PEG Fair Value

Fair Value

$25.25

Market Price

$8.44

Upside / Downside

+199.1%

Verdict

Undervalued

Using the PEG framework with analyst consensus forward EPS growth of 14.0% plus 11.1% dividend yield, the company has a fair value of $25.25 based on NTM EPS (FY2026) of $1.80. The current PEG ratio is 0.35.

PEG Ratio

0.35Deep Value

01.02.03.0+

PEG = P/E ÷ (Growth + Yield) = 4.9 ÷ (3.0% + 11.1%) = 0.35

PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.

Growth Category: Slow GrowerPEG less reliable

PEG tends to undervalue slow growers — consider dividend yield and asset value instead.

Fair Value Calculation

EPS Growth RateForward	3.0%
Dividend Yield	+11.1%
Adjusted Growth (clamped 8–25%)	14.0%
Fair P/E	14.0x
NTM EPS (FY2026)	$1.80
Fair Value	$25.25

Growth Analysis

Forward GrowthActive

Period	EPS Est.	Growth	Analysts
FY2025 (actual)	$1.53	—	—
FY2026E	$1.80	+17.6%	12
FY2027E	$1.93	+7.1%	12
FY2028E	$2.09	+8.5%	8
FY2029E	$1.94	-7.3%	7
FY2030E	$1.77	-8.8%	7

5Y Forward EPS CAGR: 3.0%

Historical Growth

Year	Net Income	EPS	YoY
FY2021	$805.8M	$1.97	—
FY2022	$910.6M	$2.34	+18.8%
FY2023	$626.0M	$1.68	-28.2%
FY2024	$934.2M	$2.74	+63.1%
FY2025	$499.6M	$1.53	-44.2%

4Y Historical EPS CAGR: -6.1%

Earnings Power Value

Fair Value

$28.71

Market Price

$8.44

Upside / Downside

+240.2%

Verdict

Undervalued

Using the Earnings Power Value framework with a WACC of 7.3% and normalized earnings of $597.9M, the company has a fair value of $28.71 per share. The EPV range is $24.47 – $35.14 based on WACC sensitivity (5.8% – 8.8%).

Currency: USD Millions

	Low	Selected	High
Normalized Earnings	598	598	598
(/) WACC	8.8%	7.3%	5.8%
Enterprise Value	6,781	8,171	10,277
(-) Net debt	-1,234	-1,234	-1,234
Equity Value	8,015	9,405	11,511
(/) Outstanding shares	328	328	328
Fair Price	$24.47	$28.71	$35.14

Dividend Discount Model

Fair Value

$17.93

Market Price

$8.44

Upside / Downside

+112.4%

Verdict

Undervalued

Using the Two-Stage Dividend Discount Model with a Cost of Equity of 7.3% and projected dividend growth of 0.0%, the fair value is $17.93 per share. The DDM range is $12.72 – $33.52 based on sensitivity analysis across Cost of Equity and growth rate assumptions.

Dividend Profile

Current DPS

$0.94

Dividend Yield

11.07%

Payout Ratio

61.8%

Dividend Coverage

1.62x

FCF Payout Ratio78.6%

DPS CAGR (4Y)0.3%

Historical Dividends Per Share

Year	DPS	Payout Ratio	YoY Growth
2025	$0.94	61.8%	+0.1%
2024	$0.94	34.4%	+0.4%
2023	$0.94	55.8%	+0.1%
2022	$0.94	40.0%	+0.5%
2021	$0.93	47.4%	—

Dividend Projections (5-Year)

Year	Projected DPS	Growth	Discount Factor	Present Value
2026	$0.94	0.0%	0.9318	$0.88
2027	$0.94	0.0%	0.8683	$0.82
2028	$0.94	0.0%	0.8091	$0.76
2029	$0.94	0.0%	0.7539	$0.71
2030	$0.94	0.0%	0.7025	$0.66
Terminal Value	$0.97 DPS	2.5%		$14.10

PV of Projected Dividends$3.83

PV of Terminal Value$14.10

Fair Value per Share$17.93

Sensitivity Analysis

Fair value under different Cost of Equity (rows) and DPS Growth Rate (columns) assumptions.

Ke \ Growth	0.0%	0.0%	0.0%	1.0%	2.0%
5.3%	$31	$31	$31	$32	$34
6.3%	$23	$23	$23	$24	$25
7.3%	$18	$18	$18	$19	$20
8.3%	$15	$15	$15	$16	$16
9.3%	$13	$13	$13	$13	$14

Disclaimer: Sweet Value Lab provides estimated intrinsic values for informational purposes only. This is not financial advice. All models rely on assumptions that may not reflect future performance. Always do your own research before making investment decisions.