Is Warby Parker’s Recent Store Expansion Enough to Support Its Current Share Price?

Simply Wall St.

Nov 28

Thinking about Warby Parker stock and wondering if it is a hidden bargain or just a trendy name? Let’s break down the value behind the brand to see where it really stands. Despite a solid 7.5% rebound...

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Let’s break down the value behind the brand to see where it really stands. Despite a solid 7.5% rebound...</p>\n\n<a href=\"https://simplywall.st/stocks/us/retail/nyse-wrby/warby-parker/news/is-warby-parkers-recent-store-expansion-enough-to-support-it\">Source Link</a>\n\n</div>\n","source":"simplywall_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Is Warby Parker’s Recent Store Expansion Enough to Support Its Current Share Price?</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nIs Warby Parker’s Recent Store Expansion Enough to Support Its Current Share Price?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2025-11-28 19:30 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/us/retail/nyse-wrby/warby-parker/news/is-warby-parkers-recent-store-expansion-enough-to-support-it><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Thinking about Warby Parker stock and wondering if it is a hidden bargain or just a trendy name? Let’s break down the value behind the brand to see where it really stands. Despite a solid 7.5% rebound...</p>\n\n<a href=\"https://simplywall.st/stocks/us/retail/nyse-wrby/warby-parker/news/is-warby-parkers-recent-store-expansion-enough-to-support-it\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK4200","symbol_name":"专卖店","start_time":0,"source_url":"https://simplywall.st/stocks/us/retail/nyse-wrby/warby-parker/news/is-warby-parkers-recent-store-expansion-enough-to-support-it","article_id":"2586787407","we_media_id":null,"thumbnails":["https://images.simplywall.st/asset/industry/6022000-choice2-main-header/1585186808155"],"rights":{"source":"simplywall_highlight","url":"https://simplywall.st/stocks/us/retail/nyse-wrby/warby-parker/news/is-warby-parkers-recent-store-expansion-enough-to-support-it","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2586787407","pubTimestamp":1764329425,"columns":[],"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"Thinking about Warby Parker stock and wondering if it is a hidden bargain or just a trendy name? Let’s break down the value behind the brand to see where it really stands.\nDespite a solid 7.5% rebound over the last week, the stock is still down 22.4% for the year and 12.8% in the past 12 months. This hints at both volatility and a shift in how investors perceive its growth and risk profile.\nIn recent news, the company has launched new retail locations and expanded its range of contact...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK4200":"专卖店","WRBY":"Warby Parker Inc.","DCF":"Dreyfus Alcentra Global Credit Income 2024 Target Term Fund, Inc"},"translate_title":"Warby Parker最近的门店扩张是否足以支撑其目前的股价？","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"DCF":1,"WRBY":1.5},"content_text":"Thinking about Warby Parker stock and wondering if it is a hidden bargain or just a trendy name? Let’s break down the value behind the brand to see where it really stands. Despite a solid 7.5% rebound over the last week, the stock is still down 22.4% for the year and 12.8% in the past 12 months. This hints at both volatility and a shift in how investors perceive its growth and risk profile. In recent news, the company has launched new retail locations and expanded its range of contact lenses. These efforts aim to capitalize on rising demand for eye care products, helping to drive both revenue and relevance, and helping explain the recent bounce in the share price. According to our checks, Warby Parker is currently undervalued in just 1 out of 6 core valuation measures, giving it a score of 1/6. We will discuss what this means across different valuation methods and hint at a smarter way to value the stock later in the article.  Warby Parker scores just 1/6 on our valuation checks. See what other red flags we found in the full valuation breakdown. AdvertisementApproach 1: Warby Parker Discounted Cash Flow (DCF) Analysis  A Discounted Cash Flow (DCF) model estimates a company's value by projecting its future free cash flows and discounting them back to today's dollars. This approach provides an intrinsic value based on expected cash generation, excluding subjective market sentiment.\n  For Warby Parker, the company reported Free Cash Flow over the last twelve months of $37.87 million. Analyst estimates project $33.8 million of free cash flow in 2026, with further ten-year forecasts extrapolated by Simply Wall St showing relatively stable, modestly declining values in the years that follow.\n  Despite new initiatives, the DCF model calculates that the fair value for Warby Parker stock is just $4.25 per share. With the current share price significantly above this level, the stock appears 362.4% overvalued according to the DCF. This suggests that the market price reflects substantially more optimism than is indicated by projected cash flows.\n  Result: OVERVALUED  Our Discounted Cash Flow (DCF) analysis suggests Warby Parker may be overvalued by 362.4%. Discover 925 undervalued stocks or create your own screener to find better value opportunities. WRBY Discounted Cash Flow as at Nov 2025 Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Warby Parker. Approach 2: Warby Parker Price vs Sales  The Price-to-Sales (P/S) ratio is a useful valuation metric for companies like Warby Parker, where profits may not fully reflect the business’s growth potential or reinvestment phase. Since Warby Parker isn't significantly profitable yet, the P/S ratio offers a clear look at how much investors are paying for each dollar of revenue.\n  In general, higher sales growth and lower business risk can justify a higher-than-average P/S multiple, while stagnant revenue or higher risk would demand a discount. Right now, Warby Parker trades at a P/S ratio of 2.82x. This is well above the Specialty Retail industry average of 0.48x and also higher than the peer average of 4.97x.\n  Simply Wall St’s proprietary \"Fair Ratio\" for Warby Parker is 1.44x. The Fair Ratio is calculated using a blend of factors beyond simple sales numbers, including expected growth, risk profile, profit margin, company size, and the context of the retail industry. This makes it more nuanced and tailored than just comparing to industry averages or peer group multiples, allowing for a valuation that accounts for the company's specific prospects and challenges.\n  Comparing the actual P/S ratio of 2.82x to the Fair Ratio of 1.44x suggests the stock is priced quite a bit above what is warranted by its fundamentals.\n Result: OVERVALUED NYSE:WRBY PS Ratio as at Nov 2025 PS ratios tell one story, but what if the real opportunity lies elsewhere? Discover 1440 companies where insiders are betting big on explosive growth. Upgrade Your Decision Making: Choose your Warby Parker Narrative  Earlier we mentioned that there is an even better way to understand valuation, so let's introduce you to Narratives. A Narrative is an investor’s story behind the numbers, connecting their unique perspective on Warby Parker’s future, such as their assumed fair value, future revenue, earnings, and margins, to a financial forecast. This approach links a company’s real-world business drivers, strategies, and risks directly to their impact on valuation, allowing you to see how your beliefs about Warby Parker can translate into a buy, hold, or sell decision.\n  On Simply Wall St’s Community page, Narratives are easy to use and available to everyone, so you can quickly compare your view of Warby Parker with millions of other investors. By contrasting your calculated Fair Value (based on your forecast) to the current market price, Narratives help you make more confident decisions about when to act. They update dynamically whenever news breaks, earnings are released, or business trends shift, so your Narrative can adapt in real time.\n  For example, some users believe recent AI and retail partnerships could support high revenue growth, setting a fair value as high as $30 per share, while others see competitive and margin risks and forecast a much lower fair value of just $20.\n Do you think there's more to the story for Warby Parker? Head over to our Community to see what others are saying! NYSE:WRBY Community Fair Values as at Nov 2025  This article by Simply Wall St is general in nature. We provide commentary based on historical data\n    and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your\n    financial situation. We aim to bring you long-term focused analysis driven by fundamental data.\n    Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.\n    Simply Wall St has no position in any stocks mentioned.Valuation is complex, but we're here to simplify it.Discover if Warby Parker might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.Access Free AnalysisHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0,"need_auth":false,"code":"91000000","status":"200"}}}