DCF Tool

WCC

Wesco International, Inc. – General Rental Centers
WESCO International, Inc., a publicly traded FORTUNE 500® company headquartered in Pittsburgh, Pennsylvania, is a leading provider of business-to-business distribution, logistics services and supply chain management solutions. Pro forma 2020 annual sales were over $16 billion, including full year sales for Anixter International which WESCO acquired in June 2020. WESCO offers a best-in-class product and services portfolio of Electrical and Electronic Solutions, Communications and Security Solutions, and Utility and Broadband Solutions. The company employs approximately 18,000 people, maintains relationships with approximately 30,000 suppliers, and serves more than 125,000 customers worldwide. With nearly 1.5 million products, end-to-end supply chain services, and leading digital capabilities, WESCO provides innovative solutions to meet customer needs across commercial and industrial businesses, contractors, government agencies, institutions, telecommunications providers, and utilities. WESCO operates approximately 800 branch and warehouse locations in over 50 countries, providing a local presence for customers and a global network to serve multi-location businesses and multi-national corporations.
Analysis Results
Intrinsic Value $1,131.01
Latest Price $135.41
Relative Value 88% undervalued
Thoughts on this result? Let us know.
Ad
Cash Flow (Billions)
Analysis Parameters
%
%
%
New Ticker
Ad
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 32.1%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 8.8%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 32.1%, 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)
2022 1.67 1.53
2023 2.2 1.86
2024 2.91 2.26
2025 3.85 2.74
2026 5.08 3.33
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 75.8 billion. This corresponds to a present value of 45.6 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 11.7 billion. Adding in the terminal value gives a total present value of 57.4 billion.

There are presently 50.7 million outstanding shares, so the intrinsic value per share is 1131.01.

Financial Statements

The following data was to determine the past cash flows.

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

This analysis is provided for informational purposes only and does not constitute financial or investing advice. For more information on the advantages and limitations of DCF analysis see background. This information is provided on an "as is" basis. No warranty, expressed or implied, is made regarding accuracy, adequacy, completeness, legality, reliability or usefulness of any information. By using this site you agree that under no circumstances shall Valuation Tools LLC be held liable for any loss or damage caused by information obtained from this website including any articles, data, videos, its social media accounts, or any other materials.