Discounted Cash Flow Model for WSO's stock

When conducting stock analysis, a fundamental part of the process is to arrive at a valuation that you think is fair for the share price of the company you are analyzing. Our Discounted Cash Flow Model (DCF) tab allows you to input your predictions and opinions about a company's future business prospects in order to determine how much the company's stock should be worth.

Our DCF models let you project WSO's balance sheet and income statement line items that impact WSO's cash flows. You can use the data from the past 4-5 years that we provide you with to help guide your financial projections for WSO's future. If you want to see the financial statements where the historic data comes from simply click on the source link underneath the title of each historic period. Read More

Discounted Cash Flow Model for WSO's stock

When conducting stock analysis, a fundamental part of the process is to arrive at a valuation that you think is fair for the share price of the company you are analyzing. Our Discounted Cash Flow Model (DCF) tab allows you to input your predictions and opinions about a company's future business prospects in order to determine how much the company's stock should be worth. Read More

Discounted Cash Flow Model for WSO's stock

When conducting stock analysis, a fundamental part of the process is to arrive at a valuation that you think is fair for the share price of the company you are analyzing. Our Discounted Cash Flow Model (DCF) tab allows you to input your predictions and opinions about a company's future business prospects in order to determine how much the company's stock should be worth.

Our DCF models let you project WSO's balance sheet and income statement line items that impact WSO's cash flows. You can use the data from the past 4-5 years that we provide you with to help guide your financial projections for WSO's future. If you want to see the financial statements where the historic data comes from simply click on the source link underneath the title of each historic period.

The model uses WACC (Weighted Average Cost of Capital) as the discount rate. WSO's default WACC of is based on WSO's cost of equity of which we calculated based on WSO's beta of and the risk free rate of . The cost of debt is estimated based on the interest and taxes that WSO's' paid during the most recently reported 12 months of financials. Finally, the equity and debt weights are calculated by using the company's market capitalization, as the amount of equity and the debt on the company's balance sheet, as the amount of debt. You can easily adjust the WACC by inputting your own assumptions.

WSO's Terminal period duration is assumed to be infinite/perpetual, so the default setting here is -1 which represents a perpetual terminal period. You can change this to any number of years that you feel is appropriate.

WSO's default terminal growth rate is . This number should be adjusted based on the ongoing growth rate you expect to see in the company's cash flows for the period following the years which you explicitly forecast for in the model.

Based on the default assumptions in the DCF, WSO's fair share price is . This implies relative to WSO's current price of .

Change the model's assumptions to see how it impacts the fair share price for WSO.

Once you've finished inputting your assumptions you can save the model and/or download it as an excel file.

For more information on how to use the DCF tab click on the purple “How To” button. View Less

Valuation

Discount Rate (WACC)