DCF Tool

WCN

Waste Connections Inc – Facilities Support Services
Waste Connections is an integrated solid waste services company that provides non-hazardous waste collection, transfer and disposal services, along with resource recovery primarily through recycling and renewable fuels generation. The Company serves more than seven million residential, commercial and industrial customers in mostly exclusive and secondary markets across 43 states in the U.S. and six provinces in Canada. Waste Connections also provides non-hazardous oilfield waste treatment, recovery and disposal services in several basins across the U.S., as well as intermodal services for the movement of cargo and solid waste containers in the Pacific Northwest.
Analysis Results
Intrinsic Value $107.65
Latest Price $135.13
Relative Value 26% overvalued
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 11.7%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 6.2%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 11.7%, 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 0.882 0.83
2023 0.985 0.873
2024 1.1 0.918
2025 1.23 0.965
2026 1.37 1.02
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 33.2 billion. This corresponds to a present value of 23.1 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 4.6 billion. Adding in the terminal value gives a total present value of 27.7 billion.

There are presently 257.0 million outstanding shares, so the intrinsic value per share is 107.65.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 1,032,777,000
Current Cash 147,441,000
Current Liabilities 1,232,746,000
Current Debt 22,741,000
Non-Cash Working Capital (NCWC) -324,669,000
Change in NCWC -112,340,000
EBIT 1,039,625,000
Tax Provision 152,253,000
Depreciation and Amortization 813,009,000
Capital Expenditure -744,315,000
Unlevered Free Cash Flow 790,610,634
Current Assets 1,408,272,000
Current Cash 617,294,000
Current Liabilities 1,028,654,000
Current Debt 25,347,000
Non-Cash Working Capital (NCWC) -212,329,000
Change in NCWC -25,380,000
EBIT 412,428,000
Tax Provision 49,922,000
Depreciation and Amortization 752,404,000
Capital Expenditure -664,561,000
Unlevered Free Cash Flow 393,803,582
Current Assets 1,130,598,000
Current Cash 326,738,000
Current Liabilities 1,007,228,000
Current Debt 16,419,000
Non-Cash Working Capital (NCWC) -186,949,000
Change in NCWC -120,142,000
EBIT 837,778,000
Tax Provision 139,210,000
Depreciation and Amortization 743,918,000
Capital Expenditure -666,089,000
Unlevered Free Cash Flow 630,245,333
Current Assets 1,092,903,000
Current Cash 319,305,000
Current Liabilities 860,709,000
Current Debt 20,304,000
Non-Cash Working Capital (NCWC) -66,807,000
Change in NCWC -38,143,000
EBIT 832,244,000
Tax Provision 159,986,000
Depreciation and Amortization 680,487,000
Capital Expenditure -546,145,000
Unlevered Free Cash Flow 740,153,002
Current Assets 1,176,868,000
Current Cash 433,815,000
Current Liabilities 802,599,000
Current Debt 30,882,000
Non-Cash Working Capital (NCWC) -28,664,000
Change in NCWC -27,279,000
EBIT 627,098,000
Tax Provision -68,910,000
Depreciation and Amortization 632,484,000
Capital Expenditure -479,287,000
Unlevered Free Cash Flow 753,016,000
Current Assets 832,569,000
Current Cash 154,382,000
Current Liabilities 692,177,000
Current Debt 12,605,000
Non-Cash Working Capital (NCWC) -1,385,000
Change in NCWC 10,952,000
EBIT 452,298,000
Tax Provision 114,044,000
Depreciation and Amortization 463,912,000
Capital Expenditure -344,723,000
Unlevered Free Cash Flow 439,697,248
Current Assets 362,427,000
Current Cash 10,974,000
Current Liabilities 378,274,000
Current Debt 14,484,000
Non-Cash Working Capital (NCWC) -12,337,000
Change in NCWC -19,912,000
EBIT -61,532,000
Tax Provision -31,592,000
Depreciation and Amortization 269,434,000
Capital Expenditure -238,833,000
Unlevered Free Cash Flow -50,843,000
Current Assets 366,144,000
Current Cash 14,353,000
Current Liabilities 360,311,000
Current Debt 16,095,000
Non-Cash Working Capital (NCWC) 7,575,000
Change in NCWC 19,838,000
EBIT 449,269,000
Tax Provision 152,335,000
Depreciation and Amortization 257,944,000
Capital Expenditure -241,277,000
Unlevered Free Cash Flow 308,314,480
Current Assets 328,505,000
Current Cash 13,591,000
Current Liabilities 345,018,000
Current Debt 17,841,000
Non-Cash Working Capital (NCWC) -12,263,000
Change in NCWC 19,500,000
EBIT 407,475,000
Tax Provision 124,916,000
Depreciation and Amortization 243,864,000
Capital Expenditure -209,874,000
Unlevered Free Cash Flow 302,358,529
Current Assets 362,486,000
Current Cash 23,212,000
Current Liabilities 417,572,000
Current Debt 46,535,000
Non-Cash Working Capital (NCWC) -31,763,000
Change in NCWC -2,344,000
EBIT 314,223,000
Tax Provision 105,443,000
Depreciation and Amortization 193,584,000
Capital Expenditure -153,517,000
Unlevered Free Cash Flow 226,965,838

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.