DCF Tool

WRK

WestRock Co – Corrugated and Solid Fiber Box Manufacturing
WestRock (NYSE: WRK) partners with our customers to provide differentiated paper and packaging solutions that help them win in the marketplace. WestRock's team members support customers around the world from locations spanning North America, South America, Europe, Asia and Australia.
Analysis Results
Intrinsic Value $3,457.44
Latest Price $30.89
Relative Value 99% 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 49.5%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 5.2%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 49.5%, 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 7.25 6.89
2023 10.8 9.8
2024 16.2 13.9
2025 24.2 19.8
2026 36.2 28.1
Terminal Value

Assuming the company was sold after the projection period at an exit multiple of 30, the terminal value of the company would be 1090 billion. This corresponds to a present value of 803 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 78.6 billion. Adding in the terminal value gives a total present value of 881 billion.

There are presently 255.0 million outstanding shares, so the intrinsic value per share is 3457.44.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 11,319,200,000
Current Cash 581,800,000
Current Liabilities 7,288,200,000
Current Debt 337,600,000
Non-Cash Working Capital (NCWC) 3,786,800,000
Change in NCWC 1,799,200,000
EBIT 2,709,600,000
Tax Provision 486,800,000
Depreciation and Amortization 2,920,000,000
Capital Expenditure -1,631,000,000
Unlevered Free Cash Flow 5,190,454,351
Current Assets 4,944,700,000
Current Cash 251,100,000
Current Liabilities 2,928,900,000
Current Debt 222,900,000
Non-Cash Working Capital (NCWC) 1,987,600,000
Change in NCWC 38,900,000
EBIT 1,188,100,000
Tax Provision 163,500,000
Depreciation and Amortization 1,487,000,000
Capital Expenditure -978,100,000
Unlevered Free Cash Flow 1,735,900,000
Current Assets 4,974,300,000
Current Cash 151,600,000
Current Liabilities 3,435,100,000
Current Debt 561,100,000
Non-Cash Working Capital (NCWC) 1,948,700,000
Change in NCWC 393,000,000
EBIT 1,643,700,000
Tax Provision 276,800,000
Depreciation and Amortization 1,511,200,000
Capital Expenditure -1,369,100,000
Unlevered Free Cash Flow 1,781,336,769
Current Assets 4,785,100,000
Current Cash 636,800,000
Current Liabilities 3,333,300,000
Current Debt 740,700,000
Non-Cash Working Capital (NCWC) 1,555,700,000
Change in NCWC -236,000,000
EBIT 1,637,500,000
Tax Provision -874,500,000
Depreciation and Amortization 1,252,200,000
Capital Expenditure -999,900,000
Unlevered Free Cash Flow 1,653,800,000
Current Assets 4,490,900,000
Current Cash 298,100,000
Current Liabilities 3,009,800,000
Current Debt 608,700,000
Non-Cash Working Capital (NCWC) 1,791,700,000
Change in NCWC 110,100,000
EBIT 1,150,000,000
Tax Provision 159,000,000
Depreciation and Amortization 1,116,600,000
Capital Expenditure -778,600,000
Unlevered Free Cash Flow 1,384,888,712
Current Assets 3,912,600,000
Current Cash 340,900,000
Current Liabilities 2,183,000,000
Current Debt 292,900,000
Non-Cash Working Capital (NCWC) 1,681,600,000
Change in NCWC -161,400,000
EBIT 806,400,000
Tax Provision 89,800,000
Depreciation and Amortization 1,146,500,000
Capital Expenditure -796,700,000
Unlevered Free Cash Flow 698,746,361
Current Assets 4,160,400,000
Current Cash 228,300,000
Current Liabilities 2,163,200,000
Current Debt 74,100,000
Non-Cash Working Capital (NCWC) 1,843,000,000
Change in NCWC 671,000,000
EBIT 1,045,500,000
Tax Provision 250,500,000
Depreciation and Amortization 740,800,000
Capital Expenditure -585,500,000
Unlevered Free Cash Flow 1,528,237,426

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