Most investors still view WIX as a legacy website builder burning cash.
The data proves a fundamental mispricing.
While the market focused on macro noise, WIX quietly completed a transformation into an elite "Rule of 40" SaaS company. Here is the "missing context" that algorithms and retail are ignoring:
1. The Profitability Inflection
Perception: Cash burner.
Reality: FCF margin exploded from 2% (2022) to 30%+ (2025E). The company now generates over $600M in annual Free Cash Flow.
2. The Valuation Gap
WIX currently trades at 9.0x EV/FCF.
High-quality SaaS peers trade at a median of 14.2x.
This implies WIX is trading at a 40–60% discount to intrinsic value despite maintaining double-digit revenue growth.
Their new AI app builder, Base44, grew from 300k users to 2 Million in just 4 months (June–Oct 2025). This asset is currently virtually free in the stock price.
My model points to a conservative price target of $170 (+76.5% upside), with limited downside risk due to the valuation trough and massive buyback potential.
The full thesis, including the DCF build-up and technical RSI analysis, is attached below.