MeritValue

WEALTHFRONT CORP

WLTHdata completeness 75%3 fiscal years on file

Data notes: no data for concept 'capex'; no data for concept 'totalDebt'; no data for concept 'interestExpense'

The thesis, from the filings

WEALTHFRONT CORP earns about 630% on equity, and has bought back 60% of its shares over 3 years. The applicable estimate puts fair value near $14.02 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2024FY 2025FY 2026
Revenue$216.7M1$308.9M1$365M1
Net income$77M2$194.4M2−$42.1M2
Operating cash flow$72.9M3$123.2M3$152.2M3
Capital expenditure———
Free cash flow (derived)———
Total debt———
Cash & equivalents$86.7M4$142.9M4$440.8M4
Diluted shares143.9M138.7M56.9M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$108.05
your share of equity
Profit it earned you last year
−$7.39
Free cash flow it threw off
—
Debt you’d be carrying
—

10 shares is a claim on $108.05 of net worth that earned you −$7.39 last year.

iii. Is this a good business?
Moat signal · return on equity
630% avg · 3y
FY24 —FY25 1268%FY26 -7%

It earned an average 630% on equity over 3 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
−60% shares · 3y

Share count is down 60% over 3 years — management has been buying back stock, quietly handing owners a bigger slice.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0
DCF · Growth Exit 10Y
not applicable
only 0 years of FCF (need ≥3) — model not applicable
DCF · Growth Exit 5Y
not applicable
only 0 years of FCF (need ≥3) — model not applicable
Earnings Power Value
$14.02
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$77M
  • growthAssumed0.0%
Graham Number
not applicable
diluted EPS missing or non-positive — Graham Number undefined

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 10-K · period ending 2024-01-31 · accession 0001628280-26-027232 (RevenueFromContractWithCustomerExcludingAssessedTax)
  2. 10-K · period ending 2024-01-31 · accession 0001628280-26-027232 (NetIncomeLoss)
  3. 10-K · period ending 2024-01-31 · accession 0001628280-26-027232 (NetCashProvidedByUsedInOperatingActivities)
  4. 10-K · period ending 2024-01-31 · accession 0001628280-26-027232 (CashAndCashEquivalentsAtCarryingValue)