1. Executive Summary: The "Tech" Premium
- Thesis: Wealthfront is valued as a hybrid. We argue it deserves a "Tech" premium due to its pure-software operational leverage.
- Target: $50 / Share (Implies $7B Market Cap)
- Rating: BUY
2. Unit Economics
Wealthfront has achieved escape velocity with a model that scales exponentially, not linearly.
- CAC: ~$140 (Blended) - significantly lower than the $1,200 industry avg.
- LTV: >$1,500 (Projected 10-year)
- LTV/CAC: >10x
- Payback Period: <9 Months
3. Valuation Framework: Sum-of-the-Parts (SOTP)
We value the two business lines separately to unlock hidden alpha.
4. Public Comparables
5. Financial Projections implies structural profitability
- 2023 Revenue: $200M (Est)
- 2024 Revenue: $350M (Est)
- 2025 Revenue: $500M (Est)
- Margins: Approaching 40% EBITDA margins as "Cash Engines" scale.