There aren't many S&P/ASX 200 Index (ASX: XJO) shares that have been hit harder than WiseTech Global Ltd (ASX: WTC).
The WiseTech share price is currently trading around $33 a pop, leaving it down almost 20% over the past month.
Zoom out further, and things look much worse, with the logistics software company's shares losing more than 60% over the past 12 months.
But at these levels, I think the market has gone too far.
In fact, I believe WiseTech is now one of the most undervalued growth stocks on the ASX 200.
And I'm becoming increasingly bullish on where its shares could go from here.
Image source: Getty Images
Look beyond the share price
It's easy to look at WiseTech's chart and assume something has gone seriously wrong with the business.
But its FY26 numbers tell a very different story.
Revenue jumped 79% to US$1.396 billion, while underlying EBITDA increased 56% to US$644.5 million.
CargoWise remains the part of the business that excites me most.
Revenue from the platform increased 11% to US$756.9 million in FY26, while customer attrition remains extremely low.
WiseTech also has more large global freight forwarders moving onto CargoWise, giving the company another long runway for growth.
That makes the current valuation much more interesting to me than it was when the shares were trading above $100.
The next chapter could be much bigger
But I don't think investors should value WiseTech purely on what it earned last year.
The acquisition of e2open has dramatically increased the company's size and created another major opportunity to improve margins.
WiseTech has already been cutting costs across the combined business, while its growing use of AI could drive further efficiencies.
The company is targeting FY27 revenue of US$1.48 billion to US$1.54 billion and underlying EBITDA of US$725 million to US$780 million.
That implies underlying EBITDA growth of roughly 12% to 21%, with margins expected to reach 49% to 51%.
Meanwhile, leverage is expected to fall to around 2.2 times by the end of FY27 and below 2 times in FY28.
Put those pieces together, and I think WiseTech could emerge from this period as a considerably larger and more profitable business.
Would I buy WiseTech shares?
Absolutely.
The market is currently treating WiseTech like its best days are behind it.
I think the opposite could prove true.
CargoWise remains an outstanding global software platform, and margins have plenty of room to improve.
Yes, there are risks, particularly around integrating e2open and delivering its FY27 targets.
But with WiseTech shares around $33, I'm more interested in the potential reward.
I think this sell-off has created one of the most attractive growth opportunities on the ASX 200.
