WSC
WillScot Holdings Corporation
$26.09
Platform & Compounding FCF
50%
Two-stage FCF DCF
Mild
·
Conviction
Overvalued
Trading 14.2% above fair value
You pay
$26.09
Bear
$22.85
Fair
$22.85
Bull
$25.88
Bear
$22.85
-12.4%
3% stage 1 growth, 12% discount
Fair
$22.85
-12.4%
3% stage 1 growth, 12% discount
Bull
$25.88
-0.8%
4% stage 1 growth, 12% discount
Key Value Driver
FCF growth rate (3% base case)
Terminal Value % of EV
28%
Implied Market Multiple
12.5x
Market is pricing in (growth)
4.2%
vs 3.0% base
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 $26.20 from 13 analysts, using a 20% weight on analyst consensus. That produces an estimated intrinsic value of $22.85 per share.
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