Is Webull (BULL) Now A Potential Opportunity After A 46% One Year Share Price Slump

Simply Wall St

Thu, February 12, 2026 at 12:19 PM GMT+9 4 min read

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BULL

-6.02%

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If you are wondering whether Webull is starting to look like value or a value trap, you are not alone. This article is here to help you frame that question clearly.

The share price closed at US$6.24, with returns of a 6.6% decline over 7 days, a 24.6% decline over 30 days, a 23.8% decline year to date, and a 46.4% decline over 1 year. These moves may have shifted how investors see both its potential and its risks.

Recent coverage of online brokers and trading platforms has focused on competition for active traders, regulatory attention on retail investing, and how user engagement trends are affecting business models. These themes give important context for Webull's share price moves, because sentiment around these issues can quickly change how investors value similar companies.

Right now Webull has a valuation score of 2 out of 6, based on checks of where it screens as undervalued. Next, we will walk through what different valuation methods say about that score and suggest a more complete way to think about value at the end of the article.

Webull scores just 2/6 on our valuation checks. See what other red flags we found in the full valuation breakdown.

Approach 1: Webull Discounted Cash Flow (DCF) Analysis

A Discounted Cash Flow, or DCF, model estimates what a business might be worth today by projecting its future cash flows and then discounting those back to a single present value.

For Webull, the model uses a 2 Stage Free Cash Flow to Equity approach. It starts from last twelve months free cash flow of about $386 million. Simply Wall St then projects cash flows out to 2035, with annual estimates in the hundreds of millions of dollars, and discounts each of those figures back to today using its own assumptions. Analysts typically publish forecasts only a few years out, so the later years are extrapolated rather than directly forecasted by analysts.

On this basis, the DCF model arrives at an estimated intrinsic value of about $18.42 per share, compared with the recent share price of $6.24. That gap implies Webull is trading at a 66.1% discount to this cash flow based estimate.

Result: UNDERVALUED

Our Discounted Cash Flow (DCF) analysis suggests Webull is undervalued by 66.1%. Track this in your watchlist or portfolio, or discover 51 more high quality undervalued stocks.

BULL Discounted Cash Flow as at Feb 2026

Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Webull.

Approach 2: Webull Price vs Sales

For companies where revenue is a key driver and earnings can be volatile, the P/S ratio is often a useful way to compare what investors are paying for each dollar of sales. It is especially handy when you want a cleaner view that is less affected by short term swings in profits.

Story Continues  

Expectations for growth and the level of risk usually influence what counts as a “normal” or “fair” P/S multiple. Higher expected growth or lower perceived risk can support a higher multiple, while slower expected growth or higher risk can point to a lower one.

Webull currently trades on a P/S of 6.08x. That is above the Capital Markets industry average of 3.77x and the peer average of 1.54x. Simply Wall St also provides a proprietary “Fair Ratio” of 4.31x for Webull, which is its view of the P/S level that would line up with the company’s growth profile, industry, profit margins, market cap and risk characteristics.

This Fair Ratio is designed to be more tailored than a simple comparison with peers or the broad industry, because it adjusts for Webull specific fundamentals rather than treating all companies as alike. With the current 6.08x P/S sitting meaningfully above the 4.31x Fair Ratio, Webull appears expensive on this metric.

Result: OVERVALUED

NasdaqCM:BULL P/S Ratio as at Feb 2026

P/S ratios tell one story, but what if the real opportunity lies elsewhere? Start investing in legacies, not executives. Discover our 22 top founder-led companies.

Upgrade Your Decision Making: Choose your Webull Narrative

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 and other investors connect Webull’s story to a clear forecast and fair value by writing out your view on its future revenue, earnings and margins, comparing that fair value to the current price to decide whether it looks attractive or stretched, and letting the numbers update automatically when new news or earnings arrive. This is why one Narrative might argue that new products like prediction markets, automation tools and AI support a fair value of about US$16.50 per share, while a more cautious Narrative could use the same data to arrive at a lower figure that reflects concerns about regulation, competition and reliance on retail trading activity.

Do you think there’s more to the story for Webull? Head over to our Community to see what others are saying!

NasdaqCM:BULL 1-Year Stock Price Chart

_ This article by Simply Wall St is general in nature. 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. 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._

Companies discussed in this article include BULL.

Have feedback on this article? Concerned about the content? Get in touch with us directly._ Alternatively, email editorial-team@simplywallst.com_

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