Market Pulse57Neutral

Warby Parker Inc.Opportunity Rank #88(WRBY) Intrinsic Value & DCF Analysis (2026)

Sector: Healthcare

Current Price

$27.61

Last updated: Jul 15, 2026

Price vs Intrinsic Value

$27.61
Price
$33.69
Intrinsic Value
Undervalued by 22%MOS: $26.95

Fundamental Score

62/100
Neutral

Weighted across 6 signals

Narrative Score

51/100
Weak

No change vs previous

Trend Score

67/100
Constructive

As of 2026-07-14

The intrinsic value of Warby Parker Inc. (WRBY) is estimated at $33.69 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $27.61, the stock appears undervalued relative to its projected cash flow fundamentals. This estimate assumes a 14.38% long-term growth rate and an 11.22% discount rate, reflecting expected future free cash flow and cost of capital.

The intrinsic value of Warby Parker Inc. (WRBY) is estimated at $33.69 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $27.61, the stock appears undervalued relative to its projected cash flow fundamentals. This estimate assumes a 14.38% long-term growth rate and an 11.22% discount rate, reflecting expected future free cash flow and cost of capital.

Valuation Details

$33.69
▲ 22.02% upside
20% margin of safety: $26.95
Years: 10Growth Rate: 14.38%
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Capital Efficiency

Average Quarterly ROIC
-0.25%
Cost of Capital (estimated)9%
Value StatusUnderperforming Capital

The company is earning below its required return. This may indicate inefficient use of capital or excess cash that isn't being reinvested.

Complete historical ROIC is available with
.

Fundamental Details

62/100
NeutralWeighted across 6 signals
DCF Discount
22.0% discount to price
87
FCF Yield
5.1% trailing FCF yield
78
ROIC vs WACC
ROIC -0.2% vs WACC 9.0% (0.0x)
0
Net Debt / FCF
Net cash position
100
Buybacks
Share count growing
30
FCF CAGR (5Y)
26.8% 5Y FCF CAGR
100
Strengths: DCF Discount, FCF Yield. Concerns: ROIC vs WACC, Buybacks.

Narrative Details

51/100
Weak
Vs 6-Month Baseline:Below Avg (37th pct)Weighted across 3 recent drivers
Trend: StableConfidence: 59%Updated: 15h ago
Sources: 14 (12 News · 2 Analyst)
Drivers(last 30 days)
Regulatory scrutiny+0.1
11 news sentiment-0.0
2 analyst reiterations0.0

Trend Details

67/100
ConstructiveAs of 2026-07-14309 daily bars used
3M Relative Strength vs SPY+20.2%
Distance from 52-Week High-9.0%
21 EMA vs 50 EMA+4.6%
Price vs 21 EMA48 · -0.3%
Price vs 50 EMA70 · +4.2%
21 EMA vs 50 EMA82 · +4.6%
3M RS vs SPY97 · +20.2%
6M RS vs SPY23 · -10.8%
Distance from 52W High82 · -9.0%

Investment Coach

Updating... 34d ago
BUYConfidence: 57%
Thesis
Warby Parker Inc. is attractively valued with an estimated fair value 39.6% above its current price, supported by healthy free cash flow yield and constructive fundamentals. Despite trailing returns relative to its cost of capital, the company shows strong free cash flow growth and a bullish fundamental score.
Key Risk
The company's return on invested capital remains below its weighted average cost of capital, posing a risk to sustained value creation.
Signals To Watch
  • Monitor whether valuation discount remains above 10%.
  • Track ROIC versus WACC spread for sustained improvement.
  • Follow narrative trend for meaningful shifts in the score direction.
Ask the Coach - Available with
Historical Growth Rates
Free Cash Flow- - -Trend CAGR: 20.33%5 Year CAGR: 59.96%

Free Cash Flow (in millions)

TTM2025202420232022202120202019
$173$178$163$115$71$17$53$54

How Intrinziq Estimates Fair Value

Intrinziq estimates Warby Parker Inc.'s intrinsic value using a discounted cash flow (DCF) model based on free cash flow trends and a market-based discount rate. The model projects future cash flows over ten years and discounts them using a market return assumption to estimate fair value.

Warby Parker Inc.Healthcare

Warby Parker Inc. operates as a purveyor of optical products and related services. Their extensive product line includes prescription eyeglasses, sunglasses, and contact lenses, alongside specialized lens options such as light-responsive (photochromic) and blue-light-filtering variants. Customers can also acquire a variety of accessories, including protective cases, lens care kits equipped with anti-fog spray, pouches, and individual anti-fog lens sprays. Beyond product sales, Warby Parker facilitates direct-to-consumer eye examinations and vision assessments. These services are accessible through their physical retail locations, online platform, and dedicated mobile applications. By May 16, 2022, the company had established a network of 160 brick-and-mortar stores across the United States and Canada. Originally incorporated as JAND, Inc. in 2009, the organization officially rebranded to Warby Parker Inc. in June 2021. Its corporate headquarters are situated in New York, New York.