Earlier this month, I highlighted international payments company Wise (LSE: WISE) as a cheap stock. At the time, I made the prediction it could potentially double my money over the next three years.

Since then, the stock has actually become cheaper as the share price has fallen a few more percentage points. So I decided to buy more shares for my ISA.

I couldn’t resist buying more

I managed to snap up shares at a price of £8.73 per share. To my mind, that’s an absolute steal. Looking at earnings forecasts, analysts expect Wise to generate earnings per share of £0.46 this financial year (ending 31 March) and £0.52 next. At a share price of £8.73, that translates to price-to-earnings (P/E) ratios of 19 and 16.8.

A forward-looking P/E ratio of 16.8 for this company? That’s crazy, in my view. And here’s why.

Huge growth potential

While Wise is a well-established company today, it’s still growing at breakneck speed. Over the last three years, its revenue has climbed from $1.16bn to $2.5bn – a compound annual growth rate (CAGR) of 29%.

That’s a brilliant level of growth. For reference, only one Magnificent 7 company, Nvidia, has generated that level of top-line growth over that period.

Looking ahead, this company has the potential to get much much bigger. For a start, it has a fast-growing platform business where it offers embedded FX services to businesses – this is expected to see strong growth in the next few years (going from 6% of its total cross-border volume to 10%).

Secondly, the company is upselling lots of different products to its retail customers. Via Wise, you can now hold a multi-currency account with 40 different currencies, invest in index funds, earn interest on your cash, and more.

Ultimately, this is a really scalable company. In my view, there are few companies on the London Stock Exchange that have as much growth potential as Wise.

A smart business model

But growth isn’t the only attraction here. Another thing I like is the company’s ‘scale economies shared’ business model. You see, Wise is continually lowering its fees for customers as it gets bigger – sharing its success with them. This keeps customers coming back for more.

A founder-led business

One other attraction is the fact that the company is led by founder Kristo Karrman. Research shows that founder-led companies are often excellent investments, as they tend to operate with a long-term mindset instead of just focusing on the next earnings release.

Analysts are bullish

So overall, there’s a lot to like about this company from an investment perspective. In my view, it deserves to be trading at a much higher multiple.

It’s worth noting that the average 12-month price target for Wise shares is 1,249p at the moment. That’s about 45% above the current share price so I’m not the only one who’s bullish here.

Could the shares double my money?

Of course, there are risks. Competition from rivals, regulatory intervention, and new payments technologies are some I’m keeping an eye on.

Overall though, I’m really strong on the stock at current levels. I continue to believe it can double my money over the next three years, and that it’s worth a closer look.

Should you invest £5,000 in Wise Plc right now?

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Edward Sheldon owns shares in Wise, London Stock Exchange Group, and Nvidia.