Wesco International distributes electrical, industrial, and communications maintenance, repair, and operating (MRO) products; and original equipment manufacturers products and construction materials in North America and internationally. The company was founded in 1922 and is based in Pittsburgh, Pennsylvania.
WCC Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for WCC, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Wesco International Inc ranked in the 55th percentile in terms of potential gain offered. Moreover, under all the scenarios we modelled, the output consistently forecasted positive returns. As for the metrics that stood out in our discounted cash flow analysis of Wesco International Inc, consider:
The stock's equity weight, or the proportion of capital from equity relative to debt, is 43. Its equity weight surpasses that of merely 23.15% of free cash flow generating stocks in the Industrials sector.
The company's compound free cash flow growth rate over the past 5.81 years comes in at -0.06%; that's greater than only 20.93% of US stocks we're applying DCF forecasting to.
Wesco International Inc's weighted average cost of capital (WACC) is 6%; for context, that number is higher than only 4.11% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Industrials that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as WCC, try MIC, BCO, CHRW, ALG, and AZZ.