Market Pulse50Neutral

Warby Parker Inc.Opportunity Rank #78(WRBY) Intrinsic Value & DCF Analysis (2026)

Sector: Healthcare

Current Price

$24.18

Last updated: Mar 24, 2026

Price vs Intrinsic Value

$24.18
Price
$34.93
Intrinsic Value
Undervalued by 44%MOS: $27.94

Fundamental Score

73/100
Bullish

Weighted across 6 signals

Narrative Score

52/100
Weak

No change vs previous

The intrinsic value of Warby Parker Inc. (WRBY) is estimated at $34.93 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $24.18, the stock appears undervalued relative to its projected cash flow fundamentals. This estimate assumes a 14.43% long-term growth rate and an 11.27% discount rate, reflecting expected future free cash flow and cost of capital.

The intrinsic value of Warby Parker Inc. (WRBY) is estimated at $34.93 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $24.18, the stock appears undervalued relative to its projected cash flow fundamentals. This estimate assumes a 14.43% long-term growth rate and an 11.27% discount rate, reflecting expected future free cash flow and cost of capital.

Valuation Details

$34.93
44.46% upside
20% margin of safety: $27.94
Years: 10Growth Rate: 14.43%
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Capital Efficiency

Average Quarterly ROIC
-0.56%
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

73/100
BullishWeighted across 6 signals
DCF Discount
44.5% discount to price
100
FCF Yield
6.0% trailing FCF yield
100
ROIC vs WACC
ROIC -0.6% vs WACC 9.0% (-0.1x)
0
Net Debt / FCF
Net cash position
100
Buybacks
Share count shrinking
80
FCF CAGR (5Y)
27.5% 5Y FCF CAGR
100
Strengths: DCF Discount, FCF Yield. Concerns: ROIC vs WACC.

Narrative Details

52/100
Weak
Vs 6-Month Baseline:Average (57th pct)Weighted across 6 recent drivers
Trend: StableConfidence: 66%Updated: 1h ago
Sources: 19 (16 News · 3 Analyst)
Drivers(last 30 days)
3 regulatory scrutiny+0.1
Downgrade headlines-0.1
Earnings beat+0.0
10 news sentiment+0.0
Upgrade headlines+0.0
3 analyst reiterations0.0

Investment Coach

Updated 13h ago
BUYConfidence: 65%
Thesis
Warby Parker Inc. is undervalued with an estimated fair value nearly 50% above its current price, supported by a strong fundamental score and healthy free cash flow yield. Despite trailing returns relative to its cost of capital, the company's robust free cash flow growth and buyback activity indicate potential for value appreciation.
Key Risk
The company's return on invested capital remains significantly below its weighted average cost of capital, posing a risk to sustained profitability.
Signals To Watch
  • Monitor whether valuation discount remains above 10%.
  • Track ROIC vs WACC spread for sustained improvement.
  • Follow narrative trend for meaningful shifts in the score direction.
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Historical Growth Rates
Free Cash Flow- - -Trend CAGR: 20.61%5 Year CAGR: 60.84%

Free Cash Flow (in millions)

TTM2025202420232022202120202019
$178$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. provides eyewear products. It offers eyeglasses, sunglasses, light-responsive lenses, blue-light-filtering lenses, and contact lenses, as well as accessories, including cases, lenses kit with anti-fog spray, pouches, and anti-fog lens spray. The company also offers eye exams and vision tests directly to consumers through its retail stores, website, and mobile apps. As of May 16, 2022, it had 160 retail stores in the United States and Canada. The company was formerly known as JAND, Inc. and changed its name to Warby Parker Inc. in June 2021. Warby Parker Inc. was incorporated in 2009 and is headquartered in New York, New York.

Warby Parker Inc. (WRBY) Intrinsic Value & DCF (2026) | Intrinziq