The Western Union Company

Financial ServicesFinancial - Credit ServicesNYSE

$9.03

Market Cap: $2.82B

The Western Union Company (WU) Valuation Summary

Updated May 11, 2026 03:49

Model	Range	Fair Value	Upside
▸ Discounted Cash Flow
Growth Exit 5Y	$28.03 – $104.55	$43.02	+376.4%
Growth Exit 10Y	$23.98 – $75.51	$34.33	+280.2%
EBITDA Exit 5Y	$16.13 – $34.38	$24.48	+171.1%
EBITDA Exit 10Y	$18.34 – $33.95	$25.00	+176.9%
▸ Trading Multiples
P/E	$15.92 – $23.03	$23.22	+157.2%
EV/EBITDA	$21.72 – $39.24	$32.55	+260.4%
EV/Revenue	$26.51 – $44.60	$38.21	+323.1%
▸ PEG
PEG Fair Value	$24.10 – $24.10	$24.10	+166.8%
▸ Earnings Power Value
Earnings Power Value	$24.23 – $34.60	$28.36	+214.1%
▸ Dividend Discount
Dividend Discount	$12.54 – $32.42	$17.60	+94.9%

Valuation History

DCF Analysis

Fair Value

$43.02

Market Price

$9.03

Upside / Downside

+376.4%

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 5.8% 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 7.4% 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 $43.02 per share, suggesting WU is undervalued by 376.4% at the current price of $9.03.

FCFF Present Value Calculation

WACC

7.42%

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	642	672	691	612	581	596
(−) Net Interest	112	118	121	107	102	104
(+) D&A	152	138	126	128	148	152
EBITDA	906	927	939	847	831	852

(−) Tax	11	12	12	11	10	10
(−) CapEx	144	151	156	138	131	134
(−) ΔWC	1,418	66	43	-175	-68	-69
Free Cash Flow (FCFF)	-667	699	728	874	758	777

Terminal Value						15,785
WACC / Discount Rate	7.4%
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	-643	627	609	680	549	11,036

Enterprise Value	12,858
Projection Period	1,822	14.2%
Terminal Value	11,036	85.8%

(−) Current Net Debt	(1,234)

Equity Value	14,092
(/) Outstanding Shares	328

Fair Price	$43.02

Sensitivity Analysis

WACC \ Terminal Growth Rate	1.5%	2.0%	2.5%	3.0%	3.5%
5.4%	$56	$63	$72	$85	$105
6.4%	$45	$49	$54	$60	$69
7.4%	$37	$40	$43	$47	$52
8.4%	$32	$34	$36	$38	$41
9.4%	$28	$29	$31	$32	$34

Current price: $9.03. Green = undervalued, Red = overvalued.

Fair Value

$34.33

Market Price

$9.03

Upside / Downside

+280.2%

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 5.8% 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 7.4% WACC with mid-year discounting, the terminal value (62% 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 $34.33 per share, suggesting WU is undervalued by 280.2% at the current price of $9.03.

FCFF Present Value Calculation

WACC

7.42%

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	642	672	691	612	581	558	543	536	537	545	559
(−) Net Interest	112	118	121	107	102	98	95	94	94	95	98
(+) D&A	152	138	126	128	148	144	140	134	127	124	127
EBITDA	906	927	939	847	831	799	778	764	758	765	784

(−) Tax	11	12	12	11	10	10	10	9	9	10	10
(−) CapEx	144	151	156	138	131	125	122	121	121	123	126
(−) ΔWC	1,418	66	43	-175	-68	-53	-33	-15	2	19	19
Free Cash Flow (FCFF)	-667	699	728	874	758	717	679	649	626	614	629

Terminal Value											12,783
WACC / Discount Rate	7.4%
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	-643	627	609	680	549	483	427	379	341	311	6,248

Enterprise Value	10,012
Projection Period	3,763	37.6%
Terminal Value	6,248	62.4%

(−) Current Net Debt	(1,234)

Equity Value	11,246
(/) Outstanding Shares	328

Fair Price	$34.33

Sensitivity Analysis

WACC \ Terminal Growth Rate	1.5%	2.0%	2.5%	3.0%	3.5%
5.4%	$45	$50	$55	$63	$76
6.4%	$37	$39	$42	$46	$51
7.4%	$31	$33	$34	$36	$39
8.4%	$27	$28	$29	$30	$32
9.4%	$24	$25	$25	$26	$27

Current price: $9.03. Green = undervalued, Red = overvalued.

Fair Value

$24.48

Market Price

$9.03

Upside / Downside

+171.1%

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 5.8% 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 7.4% WACC with mid-year discounting, the terminal value (73% of enterprise value) is derived by applying the industry peer median EV/EBITDA multiple of 8.3x to Year 6 EBITDA. After subtracting net debt, the equity value implies a fair price of $24.48 per share, suggesting WU is undervalued by 171.1% at the current price of $9.03.

FCFF Present Value Calculation

WACC

7.42%

3% – 20%

EV/EBITDA Exit Multiple

8.33x

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	642	672	691	612	581	596
(−) Net Interest	112	118	121	107	102	104
(+) D&A	152	138	126	128	148	152
EBITDA	906	927	939	847	831	852

(−) Tax	11	12	12	11	10	—
(−) CapEx	144	151	156	138	131	—
(−) ΔWC	1,418	66	43	-175	-68	—
Free Cash Flow (FCF)	-667	699	728	874	758	—

Peers' EBITDA Multiple						8.3x
Terminal Value						7,097
WACC / Discount Rate	7.42%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5
Present Value of FCF	-643	627	609	680	549	4,962

Enterprise Value	6,784
Projection Period	1,822	26.9%
Terminal Value	4,962	73.1%

(−) Current Net Debt	(1,234)
Equity Value	8,019
(÷) Outstanding Shares	328M
Fair Price	$24	+171.1%

Sensitivity Analysis

WACC \ EV/EBITDA Exit Multiple	4.3x	6.3x	8.3x	10.3x	12.3x
5.4%	$18	$22	$26	$30	$34
6.4%	$18	$22	$25	$29	$33
7.4%	$17	$21	$24	$28	$32
8.4%	$17	$20	$24	$27	$31
9.4%	$16	$19	$23	$26	$29

Current price: $9.03. Green = undervalued, Red = overvalued.

Based on default parameters

Fair Value

$25.00

Market Price

$9.03

Upside / Downside

+176.8%

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 5.8% 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 7.4% WACC with mid-year discounting, the terminal value (46% of enterprise value) is derived by applying the industry peer median EV/EBITDA multiple of 8.3x to Year 11 EBITDA. After subtracting net debt, the equity value implies a fair price of $25.00 per share, suggesting WU is undervalued by 176.9% at the current price of $9.03.

FCFF Present Value Calculation

WACC

7.42%

3% – 20%

EV/EBITDA Exit Multiple

8.33x

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	642	672	691	612	581	558	543	536	537	545	559
(−) Net Interest	112	118	121	107	102	98	95	94	94	95	98
(+) D&A	152	138	126	128	148	144	140	134	127	124	127
EBITDA	906	927	939	847	831	799	778	764	758	765	784

(−) Tax	11	12	12	11	10	10	10	9	9	10	—
(−) CapEx	144	151	156	138	131	125	122	121	121	123	—
(−) ΔWC	1,418	66	43	-175	-68	-53	-33	-15	2	19	—
Free Cash Flow (FCF)	-667	699	728	874	758	717	679	649	626	614	—

Peers' EBITDA Multiple											8.3x
Terminal Value											6,529
WACC / Discount Rate	7.42%

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	-643	627	609	680	549	483	427	379	341	311	3,191

Enterprise Value	6,954
Projection Period	3,763	54.1%
Terminal Value	3,191	45.9%

(−) Current Net Debt	(1,234)
Equity Value	8,189
(÷) Outstanding Shares	328M
Fair Price	$25	+176.8%

Sensitivity Analysis

WACC \ EV/EBITDA Exit Multiple	4.3x	6.3x	8.3x	10.3x	12.3x
5.4%	$23	$25	$28	$31	$34
6.4%	$21	$24	$27	$29	$32
7.4%	$20	$23	$25	$27	$30
8.4%	$19	$21	$24	$26	$28
9.4%	$18	$20	$22	$24	$26

Current price: $9.03. Green = undervalued, Red = overvalued.

Based on default parameters

Trading Multiples

Fair Value

$23.22

Market Price

$9.03

Upside / Downside

+157.2%

Verdict

Undervalued

Using the industry peer median P/E Multiples multiple (trailing + forward), The Western Union Company (WU) has a fair value of $23.22 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	2,958	5.9x	5.1x
Stifel Financial Corp.SF	11,713	13.0x	15.6x
Zions Bancorporation, National AssociationZION	9,226	10.4x	12.8x
Enova International, Inc.ENVA	4,352	15.1x	19.8x
WSFS Financial CorporationWSFS	3,762	14.2x	15.9x
Bread Financial Holdings, Inc.BFH	3,529	8.0x	12.6x
Brighthouse Financial, Inc.BHF	3,510	10.6x	2.1x
WesBanco, Inc.WSBC	3,289	15.1x	16.1x
eToro Group Ltd.ETOR	3,205	16.9x	17.0x
NMI Holdings, Inc.NMIH	2,953	7.9x	8.5x
The Bancorp, Inc.TBBK	2,511	12.1x	15.4x
Industry Median		12.5x	15.5x
(*) Profit after tax		500	577
Equity Value		6,256	8,959
(/) Outstanding shares		328	328
Fair Price		$19	$27

Selected Fair Value (avg of trailing + forward)

$23.22

+157.2%

Fair Value

$32.55

Market Price

$9.03

Upside / Downside

+260.4%

Verdict

Undervalued

Using the industry peer median EV/EBITDA multiple (trailing + forward), The Western Union Company (WU) has a fair value of $32.55 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	2,958	1.8x	1.7x
Stifel Financial Corp.SF	11,713	12.4x	14.3x
Zions Bancorporation, National AssociationZION	9,226	8.3x	13.2x
Enova International, Inc.ENVA	4,352	16.7x	19.8x
WSFS Financial CorporationWSFS	3,762	6.7x	9.5x
Bread Financial Holdings, Inc.BFH	3,529	6.2x	7.5x
Brighthouse Financial, Inc.BHF	3,510	2.0x	1.5x
WesBanco, Inc.WSBC	3,289	15.3x	38.9x
eToro Group Ltd.ETOR	3,205	8.4x	8.8x
NMI Holdings, Inc.NMIH	2,953	6.3x	7.8x
The Bancorp, Inc.TBBK	2,511	8.6x	12.9x
Industry Median		8.3x	11.2x
(*) EBITDA		934	989
= Enterprise Value		7,786	11,069
(-) Net Debt		-1,234	-1,234
Equity Value		9,020	12,303
(/) Outstanding shares		328	328
Fair Price		$28	$38

Selected Fair Value (avg of trailing + forward)

$32.55

+260.4%

Fair Value

$38.21

Market Price

$9.03

Upside / Downside

+323.1%

Verdict

Undervalued

Using the industry peer median EV/Revenue multiple (trailing + forward), The Western Union Company (WU) has a fair value of $38.21 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	2,958	0.4x	0.4x
Stifel Financial Corp.SF	11,713	1.8x	2.1x
Zions Bancorporation, National AssociationZION	9,226	2.2x	3.4x
Enova International, Inc.ENVA	4,352	2.8x	3.3x
WSFS Financial CorporationWSFS	3,762	2.0x	2.9x
Bread Financial Holdings, Inc.BFH	3,529	0.9x	1.1x
Brighthouse Financial, Inc.BHF	3,510	0.2x	0.1x
WesBanco, Inc.WSBC	3,289	3.3x	8.4x
eToro Group Ltd.ETOR	3,205	2.5x	2.6x
NMI Holdings, Inc.NMIH	2,953	4.7x	5.9x
The Bancorp, Inc.TBBK	2,511	3.8x	5.7x
Industry Median		2.3x	3.1x
(*) Revenue		4,041	4,276
= Enterprise Value		9,351	13,214
(-) Net Debt		-1,234	-1,234
Equity Value		10,586	14,449
(/) Outstanding shares		328	328
Fair Price		$32	$44

Selected Fair Value (avg of trailing + forward)

$38.21

+323.1%

PEG Fair Value

Fair Value

$24.10

Market Price

$9.03

Upside / Downside

+166.8%

Verdict

Undervalued

Using the PEG framework with analyst consensus forward EPS growth of 13.7% plus 11.0% dividend yield, the company has a fair value of $24.10 based on NTM EPS (FY2026) of $1.76. The current PEG ratio is 0.37.

PEG Ratio

0.37Deep Value

01.02.03.0+

PEG = P/E ÷ (Growth + Yield) = 5.1 ÷ (2.7% + 11.0%) = 0.37

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	2.7%
Dividend Yield	+11.0%
Adjusted Growth (clamped 8–25%)	13.7%
Fair P/E	13.7x
NTM EPS (FY2026)	$1.76
Fair Value	$24.10

Growth Analysis

Forward GrowthActive

Period	EPS Est.	Growth	Analysts
FY2025 (actual)	$1.53	—	—
FY2026E	$1.76	+15.2%	10
FY2027E	$1.93	+9.4%	12
FY2028E	$2.09	+8.3%	9
FY2029E	$1.92	-8.0%	4
FY2030E	$1.75	-8.9%	4

5Y Forward EPS CAGR: 2.7%

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

$28.36

Market Price

$9.03

Upside / Downside

+214.1%

Verdict

Undervalued

Using the Earnings Power Value framework with a WACC of 7.4% and normalized earnings of $597.9M, the company has a fair value of $28.36 per share. The EPV range is $24.23 – $34.60 based on WACC sensitivity (5.9% – 8.9%).

Currency: USD Millions

	Low	Selected	High
Normalized Earnings	598	598	598
(/) WACC	8.9%	7.4%	5.9%
Enterprise Value	6,703	8,058	10,099
(-) Net debt	-1,234	-1,234	-1,234
Equity Value	7,937	9,292	11,334
(/) Outstanding shares	328	328	328
Fair Price	$24.23	$28.36	$34.60

Dividend Discount Model

Fair Value

$17.60

Market Price

$9.03

Upside / Downside

+94.9%

Verdict

Undervalued

Using the Two-Stage Dividend Discount Model with a Cost of Equity of 7.4% and projected dividend growth of 0.0%, the fair value is $17.60 per share. The DDM range is $12.54 – $32.42 based on sensitivity analysis across Cost of Equity and growth rate assumptions.

Dividend Profile

Current DPS

$0.94

Dividend Yield

10.95%

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%	0.9309	$0.88
2027	$0.94	0.0%	0.8666	$0.82
2028	$0.94	0.0%	0.8067	$0.76
2029	$0.94	0.0%	0.7510	$0.71
2030	$0.95	0.0%	0.6991	$0.66
Terminal Value	$0.97 DPS	2.5%		$13.77

PV of Projected Dividends$3.83

PV of Terminal Value$13.77

Fair Value per Share$17.60

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%
5.4%	$29	$29	$30	$31	$32
6.4%	$22	$22	$22	$23	$24
7.4%	$18	$18	$18	$18	$19
8.4%	$15	$15	$15	$15	$16
9.4%	$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.