As of 2025-07-08, the Fair Value of WeWork Inc (WE) is -153.49 USD. This value is based on the Peter Lynch's Fair Value formula. With the current market price of 0.84 USD, the upside of WeWork Inc is -18471.3%.
With the market price of 0.84 USD and our fair value calculation, WeWork Inc (WE) is not a good investment. Investing in WE stocks now will result in a potential loss of 18471.3%.
Note: valuation result may not be accurate due to the company's negative EPS.
Peter Lynch's formula is:
The earnings growth rate we use in the formula is the average growth rate of net income/earnings over the last 4 years. If the average growth rate is smaller than 5%, we set it to 5%. If it is larger than 25%, we set it to 25%. If the TTM EPS is negative, Peter Lynch Fair Value's result can be unreliable.
Historical Earnings | |||||
12-2019 | 12-2020 | 12-2021 | 12-2022 | 4Y Avg | |
Net income | -3,264.74 | -3,129.36 | -4,439.03 | -2,034 | -3,217 |
YoY growth | -102.7% | 4.1% | -41.9% | 54.2% | -21.6% |
Market Cap (mil) | 44 |
P/E | - |
Forward P/E | - |
EPS | -30.7 |
Avg earnings growth rate | -21.6% |
TTM earnings | -1,635 |
Peter Lynch is one of the most legendary investors/fund managers of all time. His philosophy for stock investing is very simple and straightforward: he invests in stocks that are undervalued, meaning its P/E is less than or equal to its earnings growth rate. He believes that if a stock is trading at its fair value, the PEG ratio, which was also invented by him, should be 1.
Therefore, his formula to determine a company's fair value is:
Peter Lynch Fair Value = Earnings Growth Rate * EPS * PEG
PEG is set to 1 so we can ignore it in the calculation. Based on the formula, if the earnings growth rate of a company is 15%, Peter Lynch is willing to buy its share up to P/E = 15.