WisdomTree, Inc. (WT): what the price assumes
In the published model solve dated 2026-Q2, anchored at $22.03, WisdomTree, Inc. (WT) is priced for today's economics sustained for ~12.1 years. boothcheck publishes no house fair value, target price, or buy/sell rating; individual model outputs and user-controlled scenarios are analytical inputs, not Boothcheck targets. Narrative composed 2026-06-29.
Generated: 2026-08-10 · Exported: 2026-08-12 · Source: https://boothcheck.com/report/WT
Headline
| Field | Value |
|---|---|
| Ticker | WT |
| Company | WisdomTree, Inc. |
| Current price | $22.03/sh |
| Composition | Advisory fees 89% / Management fees 1% / Performance fees 1% / Other 8% |
What The Price Assumes (Inversion)
The assumption today's price embeds, recovered by inverting the valuation.
| Field | Value |
|---|---|
| Inversion basis | fee-financial |
| Top-of-range earnings growth must hold for | 12.1y |
| Price-to-earnings | 67.6x |
| Earnings yield | 1.5% |
Uses a multi-year earnings base; the latest year was lumpy (carry / trading / one-offs).
Solve inputs: computed at a 10.3% cost of equity; growth searched up to the 20% fee-earnings ceiling; each 1pp moves the implied horizon ~2.1 years.
Reconcile: at the x-ray's 9.3% required return this reads ~9.9 years; the models below use their own rates.
How unusual the bet is: high
| Reference | Value |
|---|---|
| vs own history | -0.31σ |
| cohort percentile (of 52 peers) | 100 |
| sustained it ~10 years at this level | 11% |
| implied end-window share | 0% |
Valuation X-Ray
Asset, earnings-power and peer-multiple models all land far below the price; ONLY the growth-DCF reaches it. The bet is durable compounding the static frames structurally cannot price (a moat/durability premium).
How the valuation models price the stock relative to the market price. Price/FV above 1.0 means the market pays more than that lens defends (expensive); at or below 1.0 the lens can defend the price.
| Family | Median price/FV | Models | Reads |
|---|---|---|---|
| Asset | 4.33x | 5 | expensive |
| Earnings | 5.66x | 5 | expensive |
| Relative | 2.04x | 4 | expensive |
| Growth | 0.68x | 3 | justifies |
Families that justify the price: Growth Families that call it expensive: Asset, Earnings, Relative
The models below discount at their own flat-beta convention rates (cost of equity 9.3%, WACC 7.1%); the inversion above states its own rate.
Per-Model Detail (n=17)
| Model | Family | FV | Price/FV | Applicable | Methodology |
|---|---|---|---|---|---|
| DCF Perpetual Growth | Growth | $61.26 | 0.36x | yes | FCF base $0.2B, growth 24% (input: historical growth), terminal g 4.0%, WACC 7.1%, 7yr projection |
| DCF Exit Multiple | Growth | $32.34 | 0.68x | yes | Exit EV/EBITDA: 20.0x / 22.0x / 24.0x (bear / base = today's held flat / bull), 7yr |
| Relative Valuation | Relative | $11.94 | 1.85x | yes | P/E 24.87x (blended: static sector reference 12x + trailing (TTM) 55x), scenarios: 20.0x / 24.9x / 29.7x (bear / base = reference held flat / bull), EV/EBITDA N/Ax |
| Simple DDM | Growth | — | — | no | — |
| Two-Stage DDM | Growth | — | — | no | — |
| Simple Excess Return | Asset | $4.34 | 5.08x | yes | BV/sh $3.11, ROE (TTM) 12.9%, ke 9.3% |
| Two-Stage Excess Return | Asset | $5.09 | 4.33x | yes | 5yr excess ROE then converge to ke=9.3% |
| Discounted Future Market Cap | Growth | $25.44 | 0.87x | yes | Rev $0.5B, growth 24% (input: historical growth; tapered), Terminal P/S: 5.0x / 6.2x / 7.4x (bear / base = today's held flat / bull, cap 12x) |
| Peter Lynch Fair Value | Relative | $7.25 | 3.04x | yes | EPS $0.41, growth 18% (input: historical EPS growth), PEG=3.10 (Overvalued) |
| Margin Trajectory | Growth | — | — | no | — |
| Earnings Power Value | Earnings | $1.39 | 15.85x | yes | Normalized EBIT (5y avg op income, one-time charges added back) $0.12B × (1−21%) / WACC 7.1% → EPV (no growth) |
| Residual Income | Asset | $5.24 | 4.20x | yes | BV $3.11 + 5yr PV of (ROE (TTM) 12.9% − Kₑ 9.3%) × BV; BV grows 8.4%/yr |
| Graham Number | Asset | $5.35 | 4.12x | yes | √(22.5 × EPS $0.41 × BVPS $3.11) — Graham's conservative floor |
| EV/EBITDA Relative | Relative | — | — | no | — |
| FCF Yield | Earnings | $3.89 | 5.66x | yes | FCF $159.3M / Kₑ 9.3% — zero-growth perpetuity |
| SBC-Adj FCF Yield | Earnings | $2.20 | 10.01x | yes | SBC-adj FCF $0.14B (FCF $0.16B − SBC $0.02B) capitalized at Kₑ |
| Ben Graham Formula | Earnings | $13.23 | 1.67x | yes | EPS $0.41 × (8.5 + 2×15.0%) × (4.4 / 5.3%) |
| ROIC-Justified P/B | Asset | $1.28 | 17.21x | yes | BV $3.11 × (ROIC 2.9% / WACC 7.1%) |
| P/Sales Sector | Relative | $10.69 | 2.06x | yes | Revenue $0.55B × sector P/S 3.0x |
| PEG Fair Value | Relative | $10.88 | 2.02x | yes | EPS $0.41 × (PEG 1.5 × growth 17.7% (input: historical EPS growth)) → PE 26.5x |
| Earnings Yield | Earnings | $4.43 | 4.97x | yes | EPS $0.41 / required return 9.3% (Rf 4.3% + ERP 5.0%) |
| Funds From Operations Multiple | Relative | — | — | no | — |
| Clinical Phase NPV | Growth | — | — | no | — |
| Merton | Asset | — | — | no | — |
| V5 Mechanical | — | — | — | no | — |
Economic-Unit Decomposition (Sum Of The Parts)
Only one reportable economic unit is present in the current topology source. Consolidated operating lenses remain available, but there is no multi-unit decomposition.
| Unit | Role | Valuation basis | Revenue | Reported profit | Value evidence | Status |
|---|---|---|---|---|---|---|
| ETP sponsor / asset management (consolidated) | operating | enterprise | 0.5B reported-currency | — | withheld | unresolved no unit value |
No total common-equity value is stated. One or more material units lack a supported unit value. The displayed values are an indicative subtotal; consolidated debt and cash cannot be applied to a fraction of the company.
Solvency
| Field | Value |
|---|---|
| Net debt | $514.7m |
| Net debt / NOPAT (after-tax) | 3.27x |
| Net debt / operating income (pre-tax) | 2.58x |
| Share count CAGR (buyback) | -0.8% |
| Burning cash | no |
Interest expense is not separately reported in the latest filings, so interest coverage cannot be computed.
Bullet Takeaways
- WisdomTree is compounding assets at a rare pace, reaching a record $152.6 billion in AUM with about $5.9 billion of net inflows in the first quarter of 2026 (a roughly 17% annualized organic growth rate) and revenue up 48% year over year as the adjusted operating margin widened 770 basis points.
- The biggest specific risk is fee compression the company documents itself: the 10-K notes funds priced at 20 basis points or less captured about 70% of global net flows over three years, and "this fee compression trend continues, with many of our competitors well-positioned to benefit."
- Watch the tokenization push: WisdomTree is moving traditional assets onto public blockchains via WisdomTree Prime and Connect, funded partly by $525 million of convertible notes, and whether that spending converts to scaled, profitable revenue under evolving digital-asset regulation is the swing factor behind the growth-only premium in the price.
Bull Case
Valuing an asset manager comes down to one chain: assets under management times the fee rate equals revenue, and the durability of that revenue depends entirely on whether the assets stay and grow. That makes WisdomTree easier to read than most businesses and harder to fake. The assets are flowing in, not out. AUM reached a record $152.6 billion at the end of the first quarter of 2026, the fifth consecutive quarter of record assets, and climbed toward $164.3 billion by the earnings call, helped by the Atlantic House acquisition. The flows behind that growth were broad: about $5.9 billion of net inflows in the quarter, split across Europe, the US, and digital assets, for a roughly 17% annualized organic growth rate. Organic growth at that pace is the scarcest thing in this industry, because most managers are fighting to hold assets, not gather them.
The operating leverage on top of the flows is what makes the model compound. An asset manager's costs are largely fixed, so revenue that grows faster than expenses drops to the margin. WisdomTree's first-quarter revenue reached $159.5 million, up 48% from the prior-year quarter, and the adjusted operating margin expanded by 770 basis points year over year. Revenue up nearly half while the margin widens by almost eight points is the signature of a platform that has crossed the scale threshold where each new dollar of assets costs little to service. The 10-K positions the pricing deliberately, noting the firm considers its "product pricing to be well-positioned within the competitive landscape," which matters in a fee-sensitive industry.
The reason the price reaches beyond what the static methods support is the second engine WisdomTree is building: tokenization. The firm is moving traditional assets onto public blockchains through WisdomTree Connect and WisdomTree Prime, and the 10-K frames it as core rather than peripheral, stating "we are diversifying into blockchain technology and digital assets." Recent launches put substance behind that, including a tokenized private-credit fund and integration with the Solana blockchain, and the firm raised $525 million in convertible notes in March 2026 to fund the push. If WisdomTree becomes the regulated bridge between conventional securities and on-chain products, it owns a distribution channel its ETF-only peers do not have. The bull case is a fast-organic-growth ETF platform with widening margins and a genuine, well-funded option on the tokenization of finance, which is precisely the durable-compounding bet the static valuation methods cannot frame.
Bear Case
The advantage being chipped away is the fee, and WisdomTree's own filing puts a number on the erosion. The FY2025 10-K states that "funds priced at 20 basis points or less have captured approximately 70% of global net flows over the past three years," and that "this fee compression trend continues, with many of our competitors well-positioned to benefit." That sentence is the whole bear case in one line: the money in the ETF industry is moving relentlessly toward the cheapest products, and the giants who can run index funds at near-zero cost are the ones positioned to capture it. WisdomTree is a smaller player, and the 10-K acknowledges that "some of our competitors maintain a larger market share, a broader product range and greater financial" resources. An asset manager's revenue is AUM times fee rate, so even strong inflows can be offset if the average fee keeps grinding lower. WisdomTree's growth has leaned on higher-fee thematic and specialized products, but those are exactly the categories most exposed when investors get price-conscious in a downturn.
The price assumes WisdomTree escapes that gravity, and only one family of valuation method agrees. At about $18.30 (June 29, 2026) the stock sits well above where the asset-value, earnings-power, and peer-multiple methods land. The earnings-power lens reads the price as more than four times its estimate, the asset lens at more than three times, and the peer-multiple lens above its mark. Only the forward-growth method reaches the price, and it does so by crediting roughly a decade of sustained compounding. That is the structural truth of this valuation: the market is paying for durable growth that the static frames cannot price, which means the entire premium rests on the flows and margin expansion continuing for years. If organic growth slows toward the industry norm, or a market drawdown shrinks the asset base that fees are charged on, the methods that already read the stock as expensive become the relevant ones.
The tokenization bet that powers the premium is also the largest source of uncertainty, and it cuts against the price as easily as for it. WisdomTree is spending heavily on blockchain, stablecoin, and digital-asset infrastructure, funded in part by $525 million of convertible notes raised in March 2026, and the 10-K is candid that policy shifts could "affect our operating environment in substantial and unpredictable ways by changing the costs of doing" business in digital assets. Digital assets are still a small slice of the flows, about $100 million of the quarter's $5.9 billion, so the tokenization revenue is mostly promise rather than profit today. The balance sheet adds a constraint: net debt sits near $1.14 billion against trailing operating income around $199 million, with interest coverage near 5.5 times, so the leverage is serviceable but real for a company this size. The bear case is that WisdomTree is paying up, in spending and in stock-price expectation, for a digital-finance future that regulation could reshape, while its core ETF fees face the same compression the filing itself documents.
Valuation
An asset manager is a leveraged play on its own asset base: revenue is AUM times fee rate, costs are largely fixed, and the equity value swings on whether assets compound or bleed. At about $18.30, the methods split sharply on whether WisdomTree's compounding is durable enough to earn the price. Three of the four families read the stock as richly valued. The earnings-power lens lands at less than a quarter of the price, the asset-value lens at under a third, and the peer-multiple comparison, against capital-markets and asset-management names, sits below the price as well. Only the forward-growth method reaches it, and it gets there by crediting roughly a decade of continued organic growth and margin expansion. That pattern is the signal: this is a durability premium the static frames structurally cannot price, not a value or turnaround read.
The most concrete "what has to be true" is that the flows and the fee rate hold together. The flows are currently excellent, about $5.9 billion of net inflows in the quarter at a roughly 17% annualized organic rate, lifting AUM to a record $152.6 billion and revenue up 48% year over year with the adjusted operating margin widening 770 basis points. The fee rate is the vulnerability the company documents itself: its 10-K notes that funds priced at 20 basis points or less captured about 70% of global net flows over three years and that "this fee compression trend continues." So the price requires WisdomTree to keep gathering assets at a premium pace while defending an average fee against an industry pulling the other way. The peer cohort the data attaches, capital-markets and advisory names like Houlihan Lokey, Tradeweb, and Piper Sandler, is a loose fit for a fee-on-AUM ETF manager, so the cleaner comparison is WisdomTree's organic growth and fee capture against other ETP sponsors rather than these multiples.
Solvency is a manageable constraint rather than a threat, but it is not trivial at this size. WisdomTree carries net debt near $1.14 billion against trailing operating income around $199 million, with interest coverage near 5.5 times, and it added $525 million of convertible notes in March 2026 to fund the digital-asset build-out. The leverage is serviceable while flows are strong and markets are up, but it would feel heavier in a drawdown that shrinks the fee-earning asset base. What a buyer is underwriting at this price is a decade of above-industry organic growth and the successful conversion of the tokenization platform from spending into scaled revenue, with three of four valuation lenses sitting below the price as a standing reminder that only the growth case justifies it.
Catalysts
The first-quarter 2026 report, delivered May 1, was the defining recent event and it was strong on every operating metric. WisdomTree posted record AUM of $152.6 billion, its fifth consecutive quarterly record, with about $5.9 billion of net inflows split across Europe ($3.1 billion), the US ($2.6 billion), and smaller contributions from digital and private assets, a roughly 17% annualized organic growth rate. Revenue reached $159.5 million, up 8% sequentially and 48% from the prior-year quarter, with adjusted EPS of $0.27 and the adjusted operating margin expanding 770 basis points year over year. By the earnings call, AUM had climbed toward $164.3 billion, aided by the Atlantic House acquisition.
The forward catalysts cluster around the digital-assets platform, which is where the firm is spending and where the market is paying for optionality. In March 2026 WisdomTree completed a $525 million private convertible note offering and launched new thematic products, and through the spring it expanded its tokenized fund lineup, integrating with the Solana blockchain and launching a tokenized private-credit and alternative-income digital fund accessible through WisdomTree Prime and Connect. These moves reinforce the near-term adoption story for on-chain products, while leaving the central question open: whether heavy investment in blockchain and stablecoin infrastructure converts into scalable, profitable demand under digital-asset regulation that is still taking shape.
Analyst sentiment is constructive but measured, and worth reading carefully against the price. One assessment lifted its target modestly to about $14.79 from $14.35 on updated revenue and margin views. That target sits below the recent trading price, which tells you the market is paying a premium the consensus models do not fully credit, most plausibly for the tokenization optionality those models struggle to value. The watch items from here are the monthly and quarterly flow and AUM figures, which are the clearest read on whether the organic-growth pace holds, and any regulatory development in digital assets, which is the variable with the most leverage on the part of the story the price is reaching for.
Peer Cohorts (Per Segment, With Filing Citations)
ETP sponsor / asset management (consolidated) (reported)
- AMG (AFFILIATED MANAGERS GROUP, INC.)
- FY2025 10-K: …measures and Consolidated Financial Statements. Average assets under management reflects the timing of the inclusion of an Affiliate's financial results in our operating performance measures and Consolidated Financial Statements. Average assets under management for equities and similar investment products generally…
- FY2025 10-K: …services are performed and consumed. Consolidated revenue recognized by the Company is adjusted for any expense reimbursement arrangements. The Company's Affiliates may periodically either waive or reduce fees in order to attract or retain client assets or for other reasons. Fee waivers or reductions are presented as…
- APAM (Artisan Partners Asset Management Inc.)
- FY2025 10-K: …operating subsidiary of Artisan Partners Holdings. APLP is registered as an investment adviser with the U.S. Securities and Exchange Commission under the Investment Advisers Act of 1940. APLP provides investment advisory services to traditional separate accounts and pooled investment vehicles, including Artisan…
- FY2025 10-K: …of the application of the tax laws, and (2) the use of professionals with specialized skill and knowledge to assist in evaluating the audit evidence obtained from these procedures. Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the…
- IVZ (Invesco Ltd.)
- FY2025 10-K: …performance-vested awards are excluded from diluted EPS share calculations as the designated contingency was not met. 16. SEGMENT AND GEOGRAPHIC INFORMATION The company has one operating segment, investment management. The company's CODM is the President and Chief Executive Officer as he assesses the company's…
- FY2025 10-K: …loan obligations Companies Act - Companies Act 1981 of Bermuda CODM - Chief Operating Decision Maker COSO - Committee of Sponsoring Organizations of the Treadway Commission Covenant Adjusted EBITDA - A financial measure set forth in covenants in our Credit Agreements (defined below), which is defined to be earnings…
- BEN (FRANKLIN RESOURCES, INC.)
- FY2025 10-K: …multiple points of access, including directly to investors and through financial intermediaries. Our investment products include our sponsored funds, as well as institutional and high-net-worth separate accounts, retail separately managed account programs, sub-advised products, and other investment vehicles. Our…
- FY2025 10-K: …products and entities, including CIPs. These unfunded commitments are not recorded in the consolidated balance sheet. Our cash, cash equivalents and investments portfolio by asset class and accounting classification at September 30, 2025, excluding third-party assets of CIPs, was as follows: Accounting Classification…
- TROW (PRICE T ROWE GROUP INC)
- FY2025 10-K: …seed capital investments 316.1 262.8 Investments used to hedge the deferred compensation liabilities 1,243.3 992.8 Investment partnerships and other investments 154.7 62.6 Investments in affiliated collateralized loan obligations 3.2 6.3 Equity method investments T. Rowe Price investment products Discretionary…
- FY2025 10-K: …private investment funds - carried interest Investments in affiliated private investment funds - carried interest represent interests in general partners of affiliated private investment funds that are contractually entitled to a disproportionate allocation of income, which is also referred to as carried interest. We…
- VCTR (Victory Capital Holdings, Inc.)
- FY2025 10-K: …are evaluated for impairment on an ongoing basis whenever events or circumstances indicate that the carrying value of the definite-lived intangible asset may not be recoverable. Advertising and Marketing Costs During 2022, the Company entered into a long-term partnership with Spurs Sports & Entertainment and executed…
- FY2025 10-K: …autonomous Investment Franchises and a Solutions Platform, the Company offers a wide array of investment products, including actively and passively managed mutual funds, rules-based and active exchange traded funds ("ETFs"), institutional separate accounts, variable insurance products ("VIPs"), alternative…
- CNS (COHEN & STEERS, INC.)
- FY2025 10-K: …prior month's NAV per share. Finally, open-end funds include active exchange traded funds (ETFs) for which we serve as investment adviser. Our initial launch in 2025 included three strategies: U.S. real estate securities, preferred securities and natural resource equities. In December 2025 we launched two additional…
- FY2025 10-K: …accepted in the United States of America (GAAP). The consolidated financial statements set forth herein include the accounts of CNS and its direct and indirect subsidiaries. Intercompany balances and transactions have been eliminated in consolidation. The preparation of the consolidated financial statements requires…
Methodology Note
- Priced-in inversion: the valuation is inverted on the current price to recover the operating-income growth, duration, and steady-state margin the price embeds (ROE for financials, FFO growth for REITs).
- Valuation x-ray: the valuation models, grouped into four families (asset, earnings, relative, growth). Each model is expressed as a price/FV ratio (distance from price), not a point fair-value estimate. The spread across families is the disagreement.
- Economic-unit decomposition (SOTP): each disclosed business unit is assigned its native valuation basis before any multiple is applied. Operating units are valued on enterprise value; funded financial units are valued on their own common equity, because their borrowings fund earning assets rather than levering the parent. A company total is stated only once every material unit carries a supported value and the parent capital bridge reconciles.
- Solvency: net cash/debt, net-debt-to-NOPAT, interest coverage, and share-count CAGR from EDGAR financials (net debt / FFO and fixed-charge coverage for REITs; regulatory-capital framing for financials).
- Peer cohorts: per-segment comparables with deep-linkable SEC filing citations.
Fundamentals sourced from SEC EDGAR filings. Current price from Databento. The priced-in inversion and valuation x-ray are computed by the boothcheck engine; narrative composed by AI from the structured data.
Sources
WT Q1 2026 earnings call, May 2026 · WT Q1 2026 results, May 2026 · WisdomTree press releases, 2026 · analyst note, 2026