WLTH: Model Update for June Market Action, General Conservatism

Research evidence excerpt

WLTH: Model Update for June Market Action, General Conservatism

Wealthfront Corporation Equity Research

Investment Thesis, Valuation and Risks

Wealthfront Corporation (WLTH)

Investment Thesis

We rate WLTH Overweight. Our bullishness mainly reflects: (1) the strong track record of growth and relatively low volatility model that

support our forecasts of favorable increases for total revenue, platform assets, and adjusted EBITDA; (2) a reasonable current valuation,

after pullbacks that seemed more sentiment than fundamentals based; and (3) possible favorable catalysts if results exceed expectations

for net deposits and/or uptake in the new Mortgage business.

Target Price Valuation for WLTH

• Our 12-month price target of $12.00 is based on a 9x EV-to-EBITDA multiple and our estimates for FY28 EBITDA and 1-yr forward

net cash and shares outstanding.

• The indicated multiple expansion reflects our expectation of valuation benefits from better-than-expected net deposits and Mortgage

volumes, demonstration of general stability for growth in revenue and earnings, and improvement in general sentiment toward the

loosely related "peer group".

Risks to Our Price Target and Rating for WLTH

Risks to our price target and rating include, but are not limited to, macro challenges such as major stock market pullbacks or extremely

low interest rates, possible reputational damage and client loss if a technology failure were to occur, a lack of valuation multiple expansion

if certain investor concerns persist (e.g., slowing Cash asset growth and/or uptake or profitability for the new Mortgage business), and

potential stock price pressure from insider selling after lock-up expirations.

Companies Mentioned in Report

Company Name Ticker Last Price

(06/30/26)

Wealthfront Corporation WLTH $8.94