DCF Tool

WRK

WestRock Co – Corrugated and Solid Fiber Box Manufacturing
westrock makes consumer and corrugated packaging solutions that give our customers a winning edge in the global marketplace. we partner closely with customers on everything from beverage packs and pizza boxes to trigger sprayers and fragrance pumps to paperboard used for a wide variety of packaging and shipping containers. we consider ourselves to be a part of their team - as we strive for continuous improvement together. every day, our 42,000 team members combine practical innovations and rigorous execution in about 275 operating and business facilities across north america, south america, europe and asia to deliver products and services that answer unique local needs. we expect to win as a company and lead the industry by achieving success together with our customers, employees and investors.
Analysis Results
Intrinsic Value $165.13
Latest Price $44.97
Relative Value 73% 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 4.4%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 6.9%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 4.4%, 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 2.02 1.89
2025 2.11 1.85
2026 2.21 1.8
2027 2.3 1.76
2028 2.41 1.72
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 49.8 billion. This corresponds to a present value of 33.3 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 9.02 billion. Adding in the terminal value gives a total present value of 42.4 billion.

There are presently 256.0 million outstanding shares, so the intrinsic value per share is 165.13.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 6,993,100,000
Current Cash 393,400,000
Current Liabilities 4,919,400,000
Current Debt 533,000,000
Non-Cash Working Capital (NCWC) 2,213,300,000
Change in NCWC 178,700,000
EBIT 1,232,000,000
Tax Provision -60,400,000
Depreciation and Amortization 1,535,800,000
Capital Expenditure -1,142,100,000
Unlevered Free Cash Flow 1,804,400,000
Current Assets 5,985,400,000
Current Cash 260,200,000
Current Liabilities 3,902,800,000
Current Debt 212,200,000
Non-Cash Working Capital (NCWC) 2,034,600,000
Change in NCWC 141,200,000
EBIT 1,810,600,000
Tax Provision 269,600,000
Depreciation and Amortization 1,488,600,000
Capital Expenditure -862,600,000
Unlevered Free Cash Flow 2,177,293,140
Current Assets 5,659,600,000
Current Cash 290,900,000
Current Liabilities 3,644,100,000
Current Debt 168,800,000
Non-Cash Working Capital (NCWC) 1,893,400,000
Change in NCWC -94,200,000
EBIT 1,354,800,000
Tax Provision 243,400,000
Depreciation and Amortization 1,460,000,000
Capital Expenditure -815,500,000
Unlevered Free Cash Flow 1,601,427,175
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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