Market Pulse59Neutral

Warby Parker Inc.Opportunity Rank #37(WRBY) Intrinsic Value & DCF Analysis (2026)

Sector: Healthcare

Current Price

$27.20

Last updated: May 08, 2026

Price vs Intrinsic Value

$27.20
Price
$33.40
Intrinsic Value
Undervalued by 23%MOS: $26.72

Fundamental Score

63/100
Neutral

Weighted across 6 signals

Narrative Score

62/100
Improving

No change vs previous

Trend Score

87/100
Strong

As of 2026-05-08

The intrinsic value of Warby Parker Inc. (WRBY) is estimated at $33.40 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $27.20, the stock appears undervalued relative to its projected cash flow fundamentals. This estimate assumes a 14.38% long-term growth rate and an 11.23% discount rate, reflecting expected future free cash flow and cost of capital.

The intrinsic value of Warby Parker Inc. (WRBY) is estimated at $33.40 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $27.20, the stock appears undervalued relative to its projected cash flow fundamentals. This estimate assumes a 14.38% long-term growth rate and an 11.23% discount rate, reflecting expected future free cash flow and cost of capital.

Valuation Details

$33.40
▲ 22.79% upside
20% margin of safety: $26.72
Years: 10Growth Rate: 14.38%
Want to create your own valuation? Create a free account.

Capital Efficiency

Average Quarterly ROIC
-0.95%
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

63/100
NeutralWeighted across 6 signals
DCF Discount
22.8% discount to price
88
FCF Yield
5.2% trailing FCF yield
80
ROIC vs WACC
ROIC -0.9% vs WACC 9.0% (-0.1x)
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

62/100
Improving
Vs 6-Month Baseline:High (99th pct)Weighted across 3 recent drivers
Trend: Improving upConfidence: 72%Updated: 17h ago
Sources: 17 (13 News · 4 Analyst)
Drivers(last 30 days)
11 news sentiment+1.2
2 regulatory scrutiny-0.0
4 analyst reiterations0.0

Trend Details

87/100
StrongAs of 2026-05-08311 daily bars used
Price vs 21 EMA+25.0%
6M Relative Strength vs SPY+46.3%
Price vs 50 EMA+26.0%
Price vs 21 EMA100 · +25.0%
Price vs 50 EMA99 · +26.0%
21 EMA vs 50 EMA57 · +0.8%
3M RS vs SPY82 · +9.0%
6M RS vs SPY99 · +46.3%
Distance from 52W High96 · -2.2%

Investment Coach

Updated 13h ago
BUYConfidence: 57%
Thesis
Warby Parker Inc. is undervalued with an estimated fair value 27.8% above the current price, supported by healthy free cash flow yield and constructive fundamentals. The company's improving narrative and strong free cash flow growth suggest potential for value realization.
Key Risk
The company's returns are currently trailing its estimated cost of capital, indicating potential challenges in generating sufficient economic profit.
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. 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.