DCF Tool

WCC

since 1922, wesco has grown from a division of westinghouse electric into a global leader of supply chain solutions. if there’s one thing that’s defined our nearly century-long history, it’s our commitment to providing superior products, services and solutions. we ensure that our customers have the resources to meet their electrical, original equipment manufacturer (oem), capital project, and maintenance, repair and operating (mro) needs. we have approximately 500 branches and nine distribution centers around the world that provide easy access to products from industry-leading brands. whatever the project is, our customers – from fortune 500s to small businesses – know that our experienced and dedicated team will help them see it through.
Analysis Results
Intrinsic Value $844.57
Latest Price $161.56
Relative Value 81% undervalued
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Cash Flow (Billions)
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 23.0%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 11.0%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 23.0%, 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 (billion) Present value (billion)
2024 2.21 1.99
2025 2.72 2.2
2026 3.34 2.44
2027 4.11 2.71
2028 5.06 3.0
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 57.4 billion. This corresponds to a present value of 30.7 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 12.3 billion. Adding in the terminal value gives a total present value of 43.0 billion.

There are presently 51.0 million outstanding shares, so the intrinsic value per share is 844.57.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 8,391,600,000
Current Cash 524,100,000
Current Liabilities 3,388,400,000
Current Debt 8,600,000
Non-Cash Working Capital (NCWC) 4,487,700,000
Change in NCWC 431,385,000
EBIT 1,406,400,000
Tax Provision 225,900,000
Depreciation and Amortization 181,300,000
Capital Expenditure -92,300,000
Unlevered Free Cash Flow 1,606,517,096
Current Assets 8,330,539,000
Current Cash 527,348,000
Current Liabilities 3,817,347,000
Current Debt 70,471,000
Non-Cash Working Capital (NCWC) 4,056,315,000
Change in NCWC 959,067,000
EBIT 1,438,085,000
Tax Provision 274,529,000
Depreciation and Amortization 179,014,000
Capital Expenditure -99,412,000
Unlevered Free Cash Flow 2,129,421,320
Current Assets 6,350,111,000
Current Cash 212,583,000
Current Liabilities 3,049,808,000
Current Debt 9,528,000
Non-Cash Working Capital (NCWC) 3,097,248,000
Change in NCWC 497,570,000
EBIT 801,873,000
Tax Provision 115,510,000
Depreciation and Amortization 198,554,000
Capital Expenditure -54,746,000
Unlevered Free Cash Flow 1,284,078,564
Current Assets 5,506,978,000
Current Cash 449,135,000
Current Liabilities 2,986,995,000
Current Debt 528,830,000
Non-Cash Working Capital (NCWC) 2,599,678,000
Change in NCWC 1,249,522,000
EBIT 347,038,000
Tax Provision 22,803,000
Depreciation and Amortization 121,600,000
Capital Expenditure -56,671,000
Unlevered Free Cash Flow 1,597,068,789
Current Assets 2,540,411,000
Current Cash 150,902,000
Current Liabilities 1,084,059,000
Current Debt 44,706,000
Non-Cash Working Capital (NCWC) 1,350,156,000
Change in NCWC 48,773,000
EBIT 346,217,000
Tax Provision 59,863,000
Depreciation and Amortization 62,107,000
Capital Expenditure -44,067,000
Unlevered Free Cash Flow 339,550,900
Current Assets 2,385,640,000
Current Cash 96,343,000
Current Liabilities 1,061,946,000
Current Debt 74,032,000
Non-Cash Working Capital (NCWC) 1,301,383,000
Change in NCWC -21,487,000
EBIT 352,440,000
Tax Provision 55,670,000
Depreciation and Amortization 62,997,000
Capital Expenditure -36,210,000
Unlevered Free Cash Flow 287,922,955
Current Assets 2,408,849,000
Current Cash 117,953,000
Current Liabilities 1,040,969,000
Current Debt 72,943,000
Non-Cash Working Capital (NCWC) 1,322,870,000
Change in NCWC 105,819,000
EBIT 320,890,000
Tax Provision 89,307,000
Depreciation and Amortization 64,017,000
Capital Expenditure -21,507,000
Unlevered Free Cash Flow 355,696,090
Current Assets 2,172,457,000
Current Cash 110,131,000
Current Liabilities 896,797,000
Current Debt 51,522,000
Non-Cash Working Capital (NCWC) 1,217,051,000
Change in NCWC -10,912,000
EBIT 332,059,000
Tax Provision 30,431,000
Depreciation and Amortization 66,858,000
Capital Expenditure -17,957,000
Unlevered Free Cash Flow 293,234,540
Current Assets 2,257,534,000
Current Cash 160,279,000
Current Liabilities 947,801,000
Current Debt 78,509,000
Non-Cash Working Capital (NCWC) 1,227,963,000
Change in NCWC -15,362,000
EBIT 373,742,000
Tax Provision 95,537,000
Depreciation and Amortization 64,968,000
Capital Expenditure -21,658,000
Unlevered Free Cash Flow 284,200,646
Current Assets 2,350,338,000
Current Cash 128,319,000
Current Liabilities 1,063,872,000
Current Debt 85,178,000
Non-Cash Working Capital (NCWC) 1,243,325,000
Change in NCWC 135,319,000
EBIT 466,217,000
Tax Provision 108,716,000
Depreciation and Amortization 68,017,000
Capital Expenditure -20,548,000
Unlevered Free Cash Flow 517,064,738
Current Assets 2,198,541,000
Current Cash 123,725,000
Current Liabilities 1,044,589,000
Current Debt 77,779,000
Non-Cash Working Capital (NCWC) 1,108,006,000
Change in NCWC 20,863,000
EBIT 480,998,000
Tax Provision 103,333,000
Depreciation and Amortization 67,642,000
Capital Expenditure -27,825,000
Unlevered Free Cash Flow 410,829,413
Current Assets 2,101,837,000
Current Cash 86,099,000
Current Liabilities 1,007,995,000
Current Debt 79,400,000
Non-Cash Working Capital (NCWC) 1,087,143,000
Change in NCWC 205,538,000
EBIT 332,871,000
Tax Provision 79,880,000
Depreciation and Amortization 37,561,000
Capital Expenditure -23,084,000
Unlevered Free Cash Flow 458,475,298

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