DCF Tool

WY

Weyerhaeuser Co. – Other Financial Vehicles
Weyerhaeuser Company, one of the world's largest private owners of timberlands, began operations in 1900. The company owns or controls approximately 11 million acres of timberlands in the U.S. and manages additional timberlands under long-term licenses in Canada. Weyerhaeuser Company manages these timberlands on a sustainable basis in compliance with internationally recognized forestry standards. The company is also one of the largest manufacturers of wood products in North America. The company is a real estate investment trust. In 2019, Weyerhaeuser Company generated $6.6 billion in net sales and employed approximately 9,400 people who serve customers worldwide. The company is listed on the Dow Jones Sustainability North America Index.
Analysis Results
Intrinsic Value $43.90
Latest Price $37.63
Relative Value 14% 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 8.4%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 7.7%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 8.4%, 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)
2022 1.59 1.47
2023 1.72 1.48
2024 1.87 1.49
2025 2.02 1.5
2026 2.19 1.52
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 39.3 billion. This corresponds to a present value of 25.2 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 7.47 billion. Adding in the terminal value gives a total present value of 32.7 billion.

There are presently 744.0 million outstanding shares, so the intrinsic value per share is 43.9.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 3,135,000,000
Current Cash 1,879,000,000
Current Liabilities 954,000,000
Current Debt 7,000,000
Non-Cash Working Capital (NCWC) 309,000,000
Change in NCWC -15,000,000
EBIT 3,602,000,000
Tax Provision 709,000,000
Depreciation and Amortization 477,000,000
Capital Expenditure -441,000,000
Unlevered Free Cash Flow 2,852,849,819
Current Assets 1,609,000,000
Current Cash 495,000,000
Current Liabilities 950,000,000
Current Debt 160,000,000
Non-Cash Working Capital (NCWC) 324,000,000
Change in NCWC -372,000,000
EBIT 1,650,000,000
Tax Provision 185,000,000
Depreciation and Amortization 472,000,000
Capital Expenditure -281,000,000
Unlevered Free Cash Flow 1,158,154,786
Current Assets 1,611,000,000
Current Cash 139,000,000
Current Liabilities 1,006,000,000
Current Debt 230,000,000
Non-Cash Working Capital (NCWC) 696,000,000
Change in NCWC 140,000,000
EBIT 704,000,000
Tax Provision -137,000,000
Depreciation and Amortization 510,000,000
Capital Expenditure -384,000,000
Unlevered Free Cash Flow 970,000,000
Current Assets 1,602,000,000
Current Cash 334,000,000
Current Liabilities 1,939,000,000
Current Debt 1,227,000,000
Non-Cash Working Capital (NCWC) 556,000,000
Change in NCWC 559,000,000
EBIT 1,470,000,000
Tax Provision 59,000,000
Depreciation and Amortization 486,000,000
Capital Expenditure -427,000,000
Unlevered Free Cash Flow 1,980,527,881
Current Assets 1,715,000,000
Current Cash 824,000,000
Current Liabilities 1,165,000,000
Current Debt 271,000,000
Non-Cash Working Capital (NCWC) -3,000,000
Change in NCWC -25,000,000
EBIT 1,182,000,000
Tax Provision 134,000,000
Depreciation and Amortization 521,000,000
Capital Expenditure -419,000,000
Unlevered Free Cash Flow 1,037,787,709
Current Assets 1,622,000,000
Current Cash 676,000,000
Current Liabilities 1,206,000,000
Current Debt 282,000,000
Non-Cash Working Capital (NCWC) 22,000,000
Change in NCWC -265,000,000
EBIT 969,000,000
Tax Provision 89,000,000
Depreciation and Amortization 565,000,000
Capital Expenditure -510,000,000
Unlevered Free Cash Flow 587,886,904
Current Assets 2,174,000,000
Current Cash 1,012,000,000
Current Liabilities 875,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) 287,000,000
Change in NCWC -248,000,000
EBIT 857,000,000
Tax Provision -3,000,000
Depreciation and Amortization 479,000,000
Capital Expenditure -519,000,000
Unlevered Free Cash Flow 569,000,000
Current Assets 3,033,000,000
Current Cash 1,580,000,000
Current Liabilities 918,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) 535,000,000
Change in NCWC 148,000,000
EBIT 1,163,000,000
Tax Provision 185,000,000
Depreciation and Amortization 500,000,000
Capital Expenditure -395,000,000
Unlevered Free Cash Flow 1,203,606,120
Current Assets 2,326,000,000
Current Cash 835,000,000
Current Liabilities 1,128,000,000
Current Debt 24,000,000
Non-Cash Working Capital (NCWC) 387,000,000
Change in NCWC -52,000,000
EBIT 754,000,000
Tax Provision -129,000,000
Depreciation and Amortization 472,000,000
Capital Expenditure -293,000,000
Unlevered Free Cash Flow 881,000,000
Current Assets 2,212,000,000
Current Cash 898,000,000
Current Liabilities 1,230,000,000
Current Debt 355,000,000
Non-Cash Working Capital (NCWC) 439,000,000
Change in NCWC 165,000,000
EBIT 583,000,000
Tax Provision 55,000,000
Depreciation and Amortization 456,000,000
Capital Expenditure -285,000,000
Unlevered Free Cash Flow 845,958,997

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