Restaurants · NASDAQ
Current Price
$171.21
Intrinsic Value
Use the calculator below to estimate
Run a full DCF analysis on Wingstop Inc. with auto-filled fundamentals, adjustable assumptions, and sensitivity heatmap.
Wingstop Inc., together with its subsidiaries, franchises and operates restaurants under the Wingstop brand name. Its restaurants offer classic wings, boneless wings, and tenders that are cooked-to-order, and hand-sauced-and-tossed in various flavors. As of December 25, 2021, the company had 1,695 franchised restaurants and 36 company-owned restaurants in 44 states and 7 countries worldwide. Wingstop Inc. was founded in 1994 and is headquartered in Addison, Texas.
ROIC (TTM)
25.1%
ROE (TTM)
-15.3%
FCF Yield
2.81%
Based on trailing twelve-month data, WING shows a free cash flow per share of N/A and a ROIC of 25.1%, key inputs for stock valuation using the DCF method. The P/FCF ratio of N/A and FCF yield of 2.81% are important context metrics when evaluating WING's stock valuation relative to peers.
The intrinsic value of WING depends on assumptions about future growth rate, discount rate (WACC), and terminal value. A DCF model discounts projected free cash flows back to present value — small changes in WACC can shift the estimate by 20% or more, which is why sensitivity analysis is essential.
Whether WING is undervalued depends on comparing the DCF-derived intrinsic value to the current market price of $171.21. A positive margin of safety (intrinsic value above market price) suggests potential undervaluation, but the degree of confidence depends on the reliability of your growth and discount rate assumptions.
To perform a DCF valuation on Wingstop Inc.: (1) Start with the trailing free cash flow per share as the base, (2) project future FCF growth over 5-10 years based on Restaurants industry trends and company fundamentals, (3) apply a discount rate (WACC) reflecting WING's risk profile, and (4) add a terminal value for cash flows beyond the projection period.
DCF (Discounted Cash Flow) estimates what a company is worth today based on its future cash generation. For Wingstop Inc., this means projecting how much free cash flow the Restaurants will produce over the next 5-10 years, then discounting those amounts to today's dollars. WING's ROIC of 25.1% indicates strong capital efficiency, which supports higher growth assumptions in the DCF model.
WACC (Weighted Average Cost of Capital) is the discount rate in a DCF model — it reflects the minimum return investors require. For WING, the capital structure and equity risk premium determine WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%.
