WestRock Company manufactures and sells paper and packaging solutions for consumer and corrugated markets in North America, South America, Europe, and the Asia-Pacific. The company was founded in 2015 and is based in Norcross, Georgia.
WRK Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for WRK, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that WestRock Co ranked in the 41th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 36.33%. In terms of the factors that were most noteworthy in this DCF analysis for WRK, they are:
The company has produced more trailing twelve month cash flow than 88.4% of its sector Consumer Cyclical.
WestRock Co's effective tax rate, as measured by taxes paid relative to net income, is at 552 -- greater than 99.6% of US stocks with positive free cash flow.
WestRock Co's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -0.34. This coverage rate is greater than that of just 23.96% of stocks we're observing for the purpose of forecasting via discounted cash flows.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Consumer Cyclical that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as WRK, try AAP, ESCA, NYT, RH, and TPCO.
In this article we discuss the 10 best packaging stocks to buy now. Packaging companies are experiencing a strong growth on the back of the e-commerce boom following the coronavirus pandemic. Analysts think that the packaging industry will see innovation and growth in 2021 and beyond. To skip our investment thesis and reasons to invest […]
In this article, we are going to list the 15 biggest paper companies in the world. Click to skip ahead and jump to the 5 biggest paper companies in the world. You might not think that the creation of paper would be a separate major industry but turns out, the sheer volume is so huge […]