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In August 2025, InvestingPro’s Fair Value model identified Webull Corporation (NASDAQ:BULL) as significantly overvalued, assigning it an "OVERVALUED" rating when the stock was trading at $15.32. Fast forward to today, just three months later, and Webull’s stock price has plummeted to $8.29 – validating the model’s assessment with remarkable accuracy. This case exemplifies how InvestingPro’s Fair Value analysis helps investors find optimal entry and exit points, understand a stock’s intrinsic value, and make more informed investment decisions by combining multiple valuation methodologies. Investors looking for similar opportunities can explore the Most overvalued list to identify stocks that may be primed for correction.
Webull Corporation operates as a fintech company providing online brokerage services and trading platforms. When InvestingPro’s Fair Value models flagged the stock as overvalued in early August, Webull had reported quarterly revenue of $457.1 million with positive earnings per share of $0.36. The stock had experienced volatile performance in the six months prior, with monthly returns ranging from -15.91% to +18.65%, creating an environment where objective valuation analysis was particularly valuable.
The Fair Value model estimated a 42.69% downside potential for Webull shares at the time of identification. The subsequent performance has proven this analysis remarkably accurate – the stock has declined by 46.15% since the August warning. This decline occurred despite Webull reporting strong revenue growth, highlighting how InvestingPro’s models can see beyond headline numbers to identify fundamental mispricing. The model’s financial health relative score of 2.97 also suggested caution was warranted despite the company’s growth narrative.
Recent developments have validated the bearish thesis. While Webull’s Q3 2025 results showed impressive revenue growth of 55% year-over-year, the company’s EPS has deteriorated significantly, falling to -$1.08 from the positive $0.36 reported when the Fair Value warning was issued. The stock has hit multiple 52-week lows in recent months, with additional pressure coming from a 3 million share block trade. Despite international expansion efforts into South Korea and the launch of new products like the Vega AI tool, investor sentiment has remained negative.
InvestingPro’s Fair Value analysis works by aggregating multiple valuation methods to provide a comprehensive intrinsic value estimate. The methodology considers discounted cash flows, comparable company analyses, dividend models, and analyst targets, while factoring in the company’s financial health. This multifaceted approach enables the model to identify mispriced stocks even when surface-level metrics like revenue growth appear positive.
Investors who heeded InvestingPro’s warning on Webull avoided a significant 46% loss in just three months. This successful call demonstrates the power of data-driven investment analysis over emotional decision-making. InvestingPro subscribers gain access to Fair Value analyses across thousands of stocks, along with financial health scores, earnings surprises, and proprietary indicators that help identify both risks and opportunities before the broader market. Learn more about InvestingPro to discover which stocks are currently flagged as significantly overvalued or undervalued, potentially saving you from costly investment mistakes.