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World Fuel Services Corp. – Petroleum and Petroleum Products Merchant Wholesalers (except Bulk Stations and Terminals)
Headquartered in Miami, Florida, World Fuel Services is a global energy management company involved in providing energy procurement advisory services, supply fulfillment and transaction and payment management solutions to commercial and industrial customers, principally in the aviation, marine and land transportation industries. World Fuel Services sells fuel and delivers services to its clients at more than 8,000 locations in more than 200 countries and territories worldwide.
Analysis Results
Intrinsic Value $44.35
Latest Price $28.27
Relative Value 36% undervalued
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Cash Flow (Millions)
Analysis Parameters
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Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of -6.6%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 5.7%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of -6.6%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (million) Present value (million)
2022 146 138
2023 137 122
2024 128 108
2025 119 95.5
2026 111 84.4
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 3070 million. This corresponds to a present value of 2200 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 548 million. Adding in the terminal value gives a total present value of 2750 million.

There are presently 61.9 million outstanding shares, so the intrinsic value per share is 44.35.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 4,019,700,000
Current Cash 652,200,000
Current Liabilities 3,096,800,000
Current Debt 30,600,000
Non-Cash Working Capital (NCWC) 301,300,000
Change in NCWC -18,200,000
EBIT 153,900,000
Tax Provision 25,900,000
Depreciation and Amortization 81,000,000
Capital Expenditure -39,200,000
Unlevered Free Cash Flow 137,679,720
Current Assets 2,639,400,000
Current Cash 658,800,000
Current Liabilities 1,684,000,000
Current Debt 22,900,000
Non-Cash Working Capital (NCWC) 319,500,000
Change in NCWC -556,300,000
EBIT 173,800,000
Tax Provision 52,100,000
Depreciation and Amortization 85,800,000
Capital Expenditure -51,300,000
Unlevered Free Cash Flow -403,964,029
Current Assets 4,170,200,000
Current Cash 186,100,000
Current Liabilities 3,162,400,000
Current Debt 54,100,000
Non-Cash Working Capital (NCWC) 875,800,000
Change in NCWC 7,500,000
EBIT 319,400,000
Tax Provision 56,200,000
Depreciation and Amortization 87,400,000
Capital Expenditure -80,900,000
Unlevered Free Cash Flow 257,756,173
Current Assets 3,974,800,000
Current Cash 211,700,000
Current Liabilities 2,935,900,000
Current Debt 41,100,000
Non-Cash Working Capital (NCWC) 868,300,000
Change in NCWC -6,800,000
EBIT 276,800,000
Tax Provision 55,900,000
Depreciation and Amortization 81,500,000
Capital Expenditure -72,300,000
Unlevered Free Cash Flow 195,561,513
Current Assets 3,940,300,000
Current Cash 372,300,000
Current Liabilities 2,718,500,000
Current Debt 25,600,000
Non-Cash Working Capital (NCWC) 875,100,000
Change in NCWC -95,700,000
EBIT 197,100,000
Tax Provision 149,300,000
Depreciation and Amortization 86,000,000
Capital Expenditure -54,000,000
Unlevered Free Cash Flow 133,400,000
Current Assets 3,836,600,000
Current Cash 698,600,000
Current Liabilities 2,182,600,000
Current Debt 15,400,000
Non-Cash Working Capital (NCWC) 970,800,000
Change in NCWC 36,000,000
EBIT 188,900,000
Tax Provision 15,700,000
Depreciation and Amortization 82,300,000
Capital Expenditure -36,100,000
Unlevered Free Cash Flow 250,243,952
Current Assets 3,254,600,000
Current Cash 582,500,000
Current Liabilities 1,762,800,000
Current Debt 25,500,000
Non-Cash Working Capital (NCWC) 934,800,000
Change in NCWC -214,339,000
EBIT 247,200,000
Tax Provision 36,300,000
Depreciation and Amortization 63,400,000
Capital Expenditure -51,000,000
Unlevered Free Cash Flow 4,342,805
Current Assets 3,674,843,000
Current Cash 302,264,000
Current Liabilities 2,241,354,000
Current Debt 17,914,000
Non-Cash Working Capital (NCWC) 1,149,139,000
Change in NCWC 125,567,000
EBIT 269,148,000
Tax Provision 51,144,000
Depreciation and Amortization 59,399,000
Capital Expenditure -50,153,000
Unlevered Free Cash Flow 352,893,464
Current Assets 3,815,501,000
Current Cash 292,061,000
Current Liabilities 2,514,515,000
Current Debt 14,647,000
Non-Cash Working Capital (NCWC) 1,023,572,000
Change in NCWC 38,168,000
EBIT 264,358,000
Tax Provision 39,505,000
Depreciation and Amortization 44,710,000
Capital Expenditure -82,716,000
Unlevered Free Cash Flow 222,181,351
Current Assets 3,281,377,000
Current Cash 172,740,000
Current Liabilities 2,149,298,000
Current Debt 26,065,000
Non-Cash Working Capital (NCWC) 985,404,000
Change in NCWC 76,934,000
EBIT 257,023,000
Tax Provision 38,244,000
Depreciation and Amortization 36,714,000
Capital Expenditure -28,454,000
Unlevered Free Cash Flow 301,191,153

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