MarketWise, Inc. (MKTW)
Valuation Overview•Is MarketWise, Inc. Overvalued or Undervalued?
The market is pricing the stock in line with historical averages, assuming steady-state growth.
Moderate quality score of 48/100, reflecting stable operating margins and manageable leverage.
Analysts remain cautious, with consensus price targets indicating limited room for upside expansion.
Verdict: Average quality business weighed down by significant profitability concerns.
Wall Street is cautious, forecasting potential downside. This outlook is strongly supported by highly attractive capital returns, driven by a balanced mix of reliable dividends and share buybacks.
MKTW demonstrates adequate business quality with stable profitability. This is backed by a fortress balance sheet, holding significant net cash ($64M) and minimal debt risk.
The company is facing top-line contraction (-13.8% 3Y CAGR) however, earnings have severely contracted over the same period. Operating efficiency remains adequate with margins around 13.9%.
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $77.0M | -19.7% | -13.8% | -2.1% | — | |
| EBITDA | -$578K | — | -10.2% | — | — | |
| Net Income | -$573K | -20.4% | -32.1% | — | — | |
| EPS (Diluted) | $-0.23 | -35.3% | -45.8% | — | — | |
| Free Cash Flow | -$2.5M | +299.6% | -1.9% | -3.9% | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 86.4% | 87.1% | 81.1% | 78.2% |
| Operating Margin | 13.9% | 17.5% | -21.3% | -35.0% |
| Net Margin | 1.3% | 1.3% | -35.4% | -45.0% |
| FCF Margin | 13.2% | 7.3% | 8.5% | 11.1% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q2'26Latest | $-0.29 | $-0.23 | +20.1% | ||
| Q1'26 | $-0.29 | $0.77 | +367.5% | ||
| Q4'25 | $-1.32 | $0.58 | +144.0% | ||
| Q3'25 | $0.64 | $0.53 | -16.7% | ||
| Q2'25 | $-0.99 | $0.41 | +141.4% | ||
| Q1'25 | $0.03 | $1.00 | +3233.3% | ||
| Q4'24 | $0.60 | $0.80 | +33.3% | ||
| Q3'24 | $0.12 | $0.80 | +566.7% |
Total return is +5.8% (1Y), lagging the benchmark by -19.2%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | +17.2% | +7.9% | — |
| 1Y | +5.8% | -19.2% | +9.8% |
| 3YCAGR | -21.0% | -40.6% | +14.5% |
| 5YCAGR | -34.5% | -47.1% | +3.6% |
| 10YCAGR | -19.0% | -32.7% | — |
The S&P 500 is at 31.3x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about MKTW (MKTW) valuation, health, and returns.
MKTW valuation is being assessed using available models.
MKTW has multiple valuation anchors: Wall Street Analyst Target: $3.50 (implying -79.1% upside). A convergence of these signals offers higher conviction.
MKTW displays fair financial health with a composite quality score of 48/100, supported by a Altman Z-Score of 0.1 (distress zone), Piotroski F-Score of 4/9.
MKTW pays a 11.7% dividend yield, covered by a 85% payout ratio with 0 years of growth, supplemented by a 7.6% buyback yield.
MKTW's current growth trajectory is Decelerating. The company achieved -19.7% 1Y revenue growth and -35.3% 1Y EPS growth, compared to its 3Y revenue CAGR of -13.8%.
Wall Street consensus is Hold based on 7 analysts, beating EPS expectations in 75% of recent quarters with a 3-quarter streak. The consensus price target represents a -79.1% change from current levels.
Investment risks for MKTW include: -35.4% 1-year max drawdown, elevated distress risk. Volatility risk is characterized by a beta of 0.38x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.