Introducing Valuation Models! 
Key Takeaways:
- Wix.com operates as a leading cloud-based web development platform serving millions of users globally through its comprehensive website-building and business management solutions.
- WIX stock could reasonably reach $198/share by the end of 2027, based on our valuation assumptions.
- This implies a total return of 51% from today’s price of $131/share, with an annualized return of 18.5% over the next 2.4 years.
Wix.com (WIX) is a comprehensive web development platform that has evolved from a simple website builder to a full-scale business management solution, serving entrepreneurs, small businesses, and creative professionals through its intuitive drag-and-drop interface and AI-powered tools.
Through its diversified approach spanning self-creators, professional partners, and business solutions across multiple geographic markets, Wix has created a resilient SaaS model that benefits from recurring subscription revenue and strong customer retention patterns.
WIX stock benefits from its market-leading position in the democratized web creation space, innovative AI integration across its product suite, and ability to expand beyond traditional website building into broader digital creation markets with new products like Wixel.
With strategic initiatives including AI-powered automation, international expansion, professional services growth through Studio, and the groundbreaking launch of Wixel as a standalone visual design platform, Wix continues to strengthen its competitive moats while capturing new revenue opportunities.
With proven innovation capabilities and strong Q1 results, where it grew sales by 13% to $474 million, WIX stock maintains its leadership position in the evolving digital creation market while building scalable growth for long-term value creation.
Here’s why WIX stock could return 18.5% annually through 2027 as the company expands its addressable market and capitalizes on AI-driven transformation opportunities.
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What the Model Says for WIX Stock
We analyzed the upside potential for WIX stock using valuation assumptions based on consensus analyst estimates.
Analysts see a bright future ahead for Wix, given its market-leading position, successful AI product launches, and ability to expand beyond core website building into broader creative tools markets.
Based on estimates of 12.8% annual revenue growth, 25.2% operating margins, and normalized valuation multiples, the model projects WIX stock could rise from $131/share to $198/share.
That represents a 51% total return and an 18.5% annualized return over the next 2.4 years.
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Our Valuation Assumptions
TIKR’s Valuation Model lets you plug in your own assumptions for a company’s revenue growth, operating margins, and P/E multiple, and calculates the stock’s expected returns.
Here’s what we used for WIX stock:
1. Revenue Growth: 12.8%
Wix delivered strong Q1 results with revenue growth of 13% year-over-year, driven by robust demand from its strongest new user cohort in recent years and successful AI product innovation.
WIX expects continued momentum from the launch of Wixel, its standalone visual design platform, AI-powered tools like Astro, and expanding partnerships, including its Microsoft Copilot integration.
We used a 12.8% forecast reflecting the company’s ability to maintain double-digit growth through market expansion, AI innovation, and successful monetization of new products while navigating potential macro headwinds.
2. Operating Margins: 25.2%
Wix demonstrates strong margin expansion potential with Q1 non-GAAP operating income increasing 44% year-over-year to 21% of revenue, driven by operational leverage as the business scales.
Its SaaS model benefits from high incremental margins on new subscriptions, while AI automation tools and improved user conversion are expected to drive further efficiency gains.
3. Exit P/E Multiple: 17.2x
WIX stock trades at reasonable multiples for a leading SaaS platform with a strong market position, proven innovation capabilities, and an expanding addressable market through products like Wixel.
We maintain current valuation levels given Wix’s market leadership, successful AI integration, and long-term growth opportunities in the democratized web creation and digital design markets.
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What Happens If Things Go Better or Worse?
Different scenarios for WIX stock through 2030 show varied outcomes based on turnaround execution success: (these are estimates, not guaranteed returns):
- Low Case: Slower AI adoption and macro headwinds → 10% annual returns
- Mid Case: Successful Wixel launch and steady growth → 16.5% annual returns
- High Case: Strong AI-driven expansion and market share gains → 22% annual returns
Even in the conservative case, Wix stock offers attractive double-digit returns supported by its SaaS model and innovation capabilities, while the upside scenario could deliver exceptional performance if Wixel captures significant market share and AI tools drive accelerated user growth.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
