WCC
WESCO International, Inc.
$363.57
Platform & Compounding FCF
50%
Two-stage FCF DCF
Strong
·
Conviction
Overvalued
Trading 230.6% above fair value
You pay
$363.57
Bear
$0.00
Fair
$109.99
Bull
$32.20
Bear
$0.00
-100.0%
6% stage 1 growth, 12% discount
Fair
$109.99
-69.7%
10% stage 1 growth, 12% discount
Bull
$32.20
-91.1%
13% stage 1 growth, 12% discount
Key Value Driver
FCF growth rate (10% base case)
Terminal Value % of EV
34%
Implied Market Multiple
66.4x
Summary
Our base-case estimate uses a two-stage discounted cash flow model based on free cash flow. We then blend that result with the average analyst price target of $366.63 from 33 analysts, using a 30% weight on analyst consensus. That produces an estimated intrinsic value of $109.99 per share.
Warnings
Wall Street's average price target is $366.63 (from 33 analysts). Our estimate is 100% below the consensus -- consider that gap carefully.
Key Risks
- P/E alone misleads — earnings depressed by growth investment
- Cyclical or commodity businesses may be misclassified as platforms
- Terminal value dominance suggests sensitivity to long-run assumptions