The WiseTech Global Ltd (ASX: WTC) share price has been under pressure again this year.
At around $43.31, the share price is well below where it has traded in the past. That has brought valuation back into focus, especially for a company that has often traded at a premium.
When I look at it now, I think the investment opportunity is becoming even more compelling.
Here is why I believe there could be upside from here.
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The valuation looks very different now
WiseTech has historically been an expensive stock.
That has often made it difficult to justify buying, even with strong growth. But at current levels, that has changed.
Based on CommSec consensus estimates, the company is expected to generate earnings per share of 81.8 cents in FY26, $1.27 in FY27, and $2.30 in FY28.
That puts the stock on around 34x FY27 earnings and closer to 19x FY28 earnings.
For a business with that kind of expected earnings growth, that is a very different starting point compared to where it has traded in the past.
To me, it is that combination of a lower multiple and strong earnings growth that makes the upside case more compelling.
The platform is still expanding
One of the things I think gets lost in the recent weakness is how much WiseTech has built.
Its CargoWise platform is deeply embedded in global logistics and supply chains. It is not a simple piece of software that can be easily replaced.
The company now serves more than 22,000 logistics companies across 193 countries, including many of the largest global freight forwarders.
That kind of scale is important. Once customers are integrated into the system, switching becomes difficult. That creates a level of stickiness that supports long-term growth.
It is also expanding its reach. The acquisition of e2open has significantly increased its network, connecting hundreds of thousands of enterprises across global trade and supply chains.
That broadens its opportunity and strengthens its position.
AI could strengthen, not weaken, the business
Artificial intelligence (AI) is one of the biggest questions around WiseTech right now. For some investors, it is seen as a potential threat. For management, it appears to be the opposite.
The company is embedding AI across its platform to improve automation, decision-making, and efficiency for customers.
It is also using AI internally to drive productivity and reduce costs, with plans to reshape parts of the organisation over time.
What stands out to me is how this fits with its existing model. WiseTech is moving towards a transaction-based commercial model, where revenue is tied more closely to the value delivered rather than the number of users.
If AI increases automation and throughput, that could actually enhance the value of the platform rather than reduce it.
Management alignment matters
Another small but telling signal is insider activity. The CEO recently purchased shares on-market, investing around $1 million of his own capital.
That does not guarantee anything.
But I do think it is worth noting when management is willing to buy shares after a period of weakness.
It suggests confidence in where the business is heading.
Foolish Takeaway
The WiseTech share price is no longer priced the way it once was.
The valuation has come back, even as the business continues to expand its platform, integrate acquisitions, and invest in AI.
There are still uncertainties, particularly around how the industry evolves and how AI plays out.
But with earnings expected to grow strongly through FY27 and FY28, I think the balance between risk and potential upside is starting to look more attractive than it has in some time.
