Wise (WISE.L), mcap=£6.6bn, price £4.65 vs £3.81

Pitch:
– World’s largest non-bank operator of currency transfers at a low valuation. – 20% larger than $WU.
– At 4% FY21 and 6% FY23, FCF yields trade below private round valuations and 55% below its 2021 IPO price.
– $WISE transfers are2x cheaper than digital competitors and 5-10x cheaper than traditional competitors.
– Growth reaccelerating to 40%+ pre-COVID levels with the possibility of gaining market share in a very large market for years to come.
– Good unit economics with 25% FCF margins.
– Strong corporate culture reinforced by the mission of low-cost international transfers helps create a flywheel effect.
– The founder owns 20% of the stock.

Valuation:
– Trades at 17x forward FCF estimate, or at 4% FY21 and 6% FY23 FCF yields.
– Trades material below private round and IPO valuations relative to annualized transfers as well as a number of customers.

Exp. gain: Not specified.

Full $WISE.L write-up (free guest account required):
https://www.valueinvestorsclub.com/idea/Wise_Plc/3741181665

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