Shares of business-to-business payments platform Wex could nearly triple by 2025 as the company continues to expand and boom opportunities in its three key business segments, Impactive Capital managing partner Lauren Taylor Wolfe said Thursday at the Sohn Investments Conference. . At about $174, the stock is currently trading at 13 times forward earnings, its lowest in decades, compared to its average of 20 times over the past decade. However, according to Taylor Wolfe, it could reach about $500 per share over the next three years. “We see a great opportunity for a double in our base case and a triple in our upside case,” she told CNBC after the incident. According to Taylor Wolfe, the company is going to generate approximately $4.5 billion of capital over the next three years through free cash flow and debt capacity. The money can be used for share buybacks or mergers and acquisitions across its three core business areas, he added. Wex’s success is dependent on its fleet management, corporate payments and travel and health sectors, which are poised to grow over the long term. Taylor Wolfe especially sees huge revenue opportunities within the fleet segment — which has a decades-long record of “double-digit top and bottom line growth across cycles” — transitioning to more electric vehicles. “Vex sits in a pole position with access to data and analytics that will drive significantly greater economics per vehicle,” she said. “New innovative subscription products and pricing power will drive high-quality recurring revenue streams, potentially more than doubling the unit economics.” Over the next few years, Taylor Wolfe expects Wex’s Fleet segment to compound EBITDA in the high single digits and says the business model performs well even in times of inflation. Effective’s calculations show that the business is worth Wex’s current total enterprise value. Taylor Wolfe also sees value in the company’s corporate payments and travel segment, which offers virtual cards and automated corporate payment services. She expects business to grow in “healthy double digits” over the next three years as travel returns and businesses move away from cash and checks. Wex’s health segment is also well positioned to ride out inflation and will continue to grow revenue due to rising healthcare costs. He said that in the company’s current multiple, the segment trades at around 70% discount to its counterparts in the space called HealthEquity. “We view this segment as an undervalued jewel within the Wex enterprise,” she said. Meanwhile, expanding its electric vehicle segment to offer customers more data and analytics could generate about 70% more revenue per vehicle, she said. Shares of Wex are trading up more than 26% this year, but down about 15% from a 52-week high of $208.38 per share.