Wabash National Corporation specializes in the design and production of dry freight vans, refrigerated vans, platform trailers, bulk tank trailers, intermodal equipment, engineered products, and composite products. The company was founded in 1985 and is based in Lafayette, Indiana.
WNC Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for WABASH NATIONAL Corp with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that WABASH NATIONAL Corp ranked in the 48th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 13.67%. The most interesting components of our discounted cash flow analysis for WABASH NATIONAL Corp ended up being:
WABASH NATIONAL Corp's weighted average cost of capital (WACC) is 12%; for context, that number is higher than 84% of tickers in our DCF set.
WABASH NATIONAL Corp's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -2.6. This coverage rate is greater than that of only 16.1% of stocks we're observing for the purpose of forecasting via discounted cash flows.
The company's cost of debt, derived from its interest coverage, tax rate, and market capitalization, is greater than 74.15% of stocks in its sector (Industrials).
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 WNC, try CVA, MATW, MG, NSP, and B.
Wabash National's (WNC) stock performed poorly over the first half of 2020, but shares have recovered since the March 2020 lows. Data by YCharts The stock is definitely not as cheap as it was in the March/April 2020 time frame, but I still believe this small-cap company is well-positioned for...
WG Investment Research on Seeking Alpha | January 1, 2021
LAFAYETTE, Ind., Dec. 29, 2020 (GLOBE NEWSWIRE) -- Wabash National Corporation (NYSE: WNC) today published its first Sustainability Report on its new investor website at ir.wabashnational.com. The company’s 2019 Sustainability Report references the ongoing environmental, social and governance (ESG) initiatives that demonstrate Wabash National’s commitment to sustainability and social responsibility.“Wabash National has been internally focused on ESG topics for some time. I’m pleased our external reporting is more fully reflecting our internal efforts because we have a great story to tell,” said Brent Yeagy, president and CEO. “Every day we work with our eyes turned to fulfilling our purpose of Changing How the World Reaches You™, and we do so with a responsibility to our employees, cus...