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 57th percentile in terms of potential gain offered. Moreover, under all the scenarios we modelled, the output consistently forecasted positive returns. The most interesting components of our discounted cash flow analysis for Wesco International Inc ended up being:
29% of the company's capital comes from equity, which is greater than just 12.27% of stocks in our cash flow based forecasting set.
The business' balance sheet reveals debt to be 71% of the company's capital (with equity being the remaining amount). Approximately 87.69% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
The weighted average cost of capital for the company is 8. This value is greater than only 24.24% stocks in the Industrials sector that generate free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
B, WSO, MATW, VMI, and AGCO can be thought of as valuation peers to WCC, in the sense that they are in the Industrials sector and have a similar price forecast based on DCF valuation.
WCC Holds Up Before The Go Source WESCO International (WCC) is riding on the secular uptrend in the data and communication business. Following the Anixter acquisition, its operating margin is due for expansion due to the cost synergies. In the first half of 2020, many construction projects have been deferred...
Badsha Chowdhury on Seeking Alpha | September 10, 2020
Although COVID-19 impacted WESCO's (WCC) second-quarter results, management is confident about what the future holds for the new WESCO after the acquisition of Anixter. The combined entity (WESCO+Anixter) is very much on track to achieve its targeted synergies, which calls for $200M in annual cost synergies over a three-year period....
What Defines a Value Stock? A value stock traditionally has a lower price when compared to stock prices of companies in the same industry. This indicates that the company may be undervalued, as investors are not expressing as much interest in such companies. The most commonly used way to check for value is with the price-to-earnings multiple, or P/E. A low P/E multiple is a good indication that the stock is undervalued.The following stocks are considered to be notable value stocks in the industrials sector: 1. Navios Maritime Container (NASDAQ: NMCI) - P/E: 2.2 2. L.B. Foster (NASDAQ: FSTR) - P/E: 3.89 3. Eastern Co (NASDAQ: EML) - P/E: 7.25 4. WESCO International (NYSE: WCC) - P/E: 8.41 5. Capital Product Partners (NASDAQ: CPLP) - P/E: 5.77Navios Maritime Container's earnings...