<div id="readability-page-1"><div><ul> <li>If you are wondering whether Warby Parker shares are starting to look compelling at today's price, it helps to step back and look at how the current market value lines up with the underlying business.</li> <li>The stock most recently closed at US$27.07, with returns of 24.2% over the last 7 days, 27.3% over the last 30 days, 19.7% year to date, and 1.7% over the last year, while the 3 year return sits at 54.3%.</li> <li>Recent coverage around Warby Parker has focused on its position as a US eyewear retailer listed on the NYSE and on how investors are reacting to its business model and growth story. This helps frame the recent share price moves. Putting these headlines next to the return figures gives you useful context for judging whether sentiment is running ahead of fundamentals or lagging them.</li> <li>Right now, Warby Parker has a valuation score of 0 out of 6. In the sections that follow we will walk through the main valuation approaches behind that score, then finish with a framework that can help you think about the stock's value in an even more rounded way.</li> </ul> <p>Warby Parker scores just 0/6 on our valuation checks. See what other red flags we found in the full valuation breakdown.</p> <h3>Approach 1: Warby Parker Discounted Cash Flow (DCF) Analysis</h3> <p>A Discounted Cash Flow model takes the cash that a business is expected to generate in the future, then discounts those amounts back into today’s dollars to estimate what the entire company could be worth right now.</p> <p>For Warby Parker, the latest twelve month Free Cash Flow stands at about $37.9 million. Using a 2 Stage Free Cash Flow to Equity model, analysts and Simply Wall St project Free Cash Flow out to 2035, with a specific data point of $63.3 million in 2027 and further years extrapolated by Simply Wall St based on earlier estimates.</p> <p>When those projected cash flows are discounted back and added together, the model arrives at an estimated intrinsic value of about $13.07 per share. Compared with the recent share price of $27.07, the DCF output suggests the stock is very fully priced, with an implied overvaluation of 107.2%.</p> <p>This model presents one perspective, based on these assumptions, that the current market price sits well above the DCF estimate.</p> <p><strong>Result: OVERVALUED</strong></p> <p>Our Discounted Cash Flow (DCF) analysis suggests Warby Parker may be overvalued by 107.2%. Discover 886 undervalued stocks or create your own screener to find better value opportunities.</p> <figure><img height="476" src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/451a246a-a01c-44df-9a64-033f9f258c8f/chart/dcf?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="746" original-src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/451a246a-a01c-44df-9a64-033f9f258c8f/chart/dcf"/><figcaption>WRBY Discounted Cash Flow as at Jan 2026</figcaption></figure> <p>Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Warby Parker.</p> <h3>Approach 2: Warby Parker Price vs Sales</h3> <p>For companies where profits are not the main anchor yet, the P/S ratio is often a useful way to compare what investors are paying for each dollar of revenue. It is simple, and it applies even when earnings are small or volatile.</p> <p>In general, higher expected growth and lower perceived risk can support a higher P/S multiple, while slower expected growth or higher risk usually point to a lower, more cautious range. So what really matters is not the raw number on its own, but how that number stacks up against reasonable reference points.</p> <p>Warby Parker currently trades on a P/S ratio of 3.89x. That is above the Specialty Retail industry average of 0.49x and also above the peer average of 0.72x. Simply Wall St also calculates a Fair Ratio of 1.61x, which is the P/S multiple it would expect for Warby Parker after factoring in elements such as growth profile, profit margins, industry, market cap and company specific risks. This Fair Ratio aims to be more tailored than a simple comparison against peers or the broad industry because it adjusts for those company specific drivers. Set against this 1.61x Fair Ratio, the current 3.89x P/S suggests the shares are pricing in a much richer revenue multiple than this model indicates.</p> <p><strong>Result: OVERVALUED</strong></p> <figure><img height="476" src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/451a246a-a01c-44df-9a64-033f9f258c8f/chart/ps-multiple-vs-industry?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="746" original-src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/451a246a-a01c-44df-9a64-033f9f258c8f/chart/ps-multiple-vs-industry"/><figcaption>NYSE:WRBY P/S Ratio as at Jan 2026</figcaption></figure> <p>P/S ratios tell one story, but what if the real opportunity lies elsewhere? Discover 1443 companies where insiders are betting big on explosive growth.</p> <h3>Upgrade Your Decision Making: Choose your Warby Parker Narrative</h3> <p>Earlier we mentioned that there is an even better way to understand valuation. On Simply Wall St's Community page you can use Narratives, where you spell out your story for Warby Parker, link that story to specific forecasts for revenue, earnings and margins, and arrive at your own fair value. You can then see it update automatically when new news or earnings drop, compare that evolving fair value with the live share price to help decide whether the gap looks attractive or stretched, and even see how different investors frame the company. For example, one Narrative might lean closer to the higher US$30.00 analyst target with a stronger margin and growth view, while another might sit nearer the lower US$20.00 target with a more cautious stance on expansion and competition.</p> <p>Do you think there's more to the story for Warby Parker? Head over to our Community to see what others are saying!</p> <figure><img height="476" src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/451a246a-a01c-44df-9a64-033f9f258c8f/chart/quote-price?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="746" original-src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/451a246a-a01c-44df-9a64-033f9f258c8f/chart/quote-price"/><figcaption>NYSE:WRBY 1-Year Stock Price Chart</figcaption></figure> <p><em> This article by Simply Wall St is general in nature. <strong>We provide commentary based on historical data     and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice.</strong> It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your     financial situation. We aim to bring you long-term focused analysis driven by fundamental data.     Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.     Simply Wall St has no position in any stocks mentioned.</em></p></div></div>

WRBY

<p>Warby Parker's stock recently closed at $27.07, showing significant returns over various periods. However, its valuation score is 0 out of 6, indicating potential overvaluation. A Discounted Cash Flow analysis suggests an intrinsic value of $13.07 per share, implying a 107.2% overvaluation. Additionally, the Price-to-Sales ratio stands at 3.89x, well above industry averages, further supporting the overvaluation claim. Investors are encouraged to reassess the stock's value against its fundamentals and market sentiment.</p>

Is It Too Late To Reassess Warby Parker (WRBY) After The Recent Share Price Jump?