Intrinsic value of West Fraser Timber Co. Ltd. - WFT

Previous Close

$63.96

  Intrinsic Value

$241.20

stock screener

  Rating & Target

str. buy

+277%

  Value-price divergence*

-5%

Previous close

$63.96

 
Intrinsic value

$241.20

 
Up/down potential

+277%

 
Rating

str. buy

 
Value-price divergence*

-5%

*Intrinsic value change (in %) minus stock price change (in %) in the past 12 months.

We calculate the intrinsic value of WFT stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Revenue (in 2016), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 4.9

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
2016(a)
   2017
   2018
   2019
   2020
   2021
   2022
   2023
   2024
   2025
   2026
   2027
   2028
   2029
   2030
   2031
   2032
   2033
   2034
   2035
   2036
   2037
   2038
   2039
   2040
   2041
   2042
   2043
   2044
   2045
   2046

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  8.54
  10.40
  9.86
  9.37
  8.94
  8.54
  8.19
  7.87
  7.58
  7.32
  7.09
  6.88
  6.69
  6.53
  6.37
  6.24
  6.11
  6.00
  5.90
  5.81
  5.73
  5.66
  5.59
  5.53
  5.48
  5.43
  5.39
  5.35
  5.31
  5.28
  5.25
Revenue, $m
  4,450
  4,913
  5,397
  5,903
  6,431
  6,980
  7,552
  8,146
  8,764
  9,405
  10,073
  10,766
  11,487
  12,236
  13,016
  13,827
  14,672
  15,553
  16,471
  17,428
  18,426
  19,468
  20,557
  21,694
  22,883
  24,125
  25,425
  26,785
  28,208
  29,699
  31,259
Variable operating expenses, $m
 
  1,641
  1,803
  1,972
  2,148
  2,331
  2,522
  2,721
  2,927
  3,141
  3,364
  3,596
  3,837
  4,087
  4,347
  4,618
  4,901
  5,195
  5,501
  5,821
  6,154
  6,502
  6,866
  7,246
  7,643
  8,058
  8,492
  8,946
  9,422
  9,919
  10,441
Fixed operating expenses, $m
 
  2,606
  2,671
  2,737
  2,806
  2,876
  2,948
  3,022
  3,097
  3,175
  3,254
  3,335
  3,419
  3,504
  3,592
  3,682
  3,774
  3,868
  3,965
  4,064
  4,165
  4,269
  4,376
  4,486
  4,598
  4,713
  4,831
  4,951
  5,075
  5,202
  5,332
Total operating expenses, $m
  3,968
  4,247
  4,474
  4,709
  4,954
  5,207
  5,470
  5,743
  6,024
  6,316
  6,618
  6,931
  7,256
  7,591
  7,939
  8,300
  8,675
  9,063
  9,466
  9,885
  10,319
  10,771
  11,242
  11,732
  12,241
  12,771
  13,323
  13,897
  14,497
  15,121
  15,773
Operating income, $m
  482
  666
  924
  1,194
  1,477
  1,773
  2,081
  2,404
  2,739
  3,089
  3,454
  3,835
  4,231
  4,645
  5,077
  5,527
  5,998
  6,490
  7,005
  7,543
  8,106
  8,696
  9,315
  9,963
  10,642
  11,355
  12,103
  12,888
  13,712
  14,577
  15,486
EBITDA, $m
  679
  869
  1,146
  1,437
  1,742
  2,060
  2,392
  2,739
  3,100
  3,476
  3,869
  4,278
  4,704
  5,148
  5,612
  6,096
  6,602
  7,130
  7,682
  8,260
  8,865
  9,498
  10,160
  10,855
  11,584
  12,347
  13,149
  13,990
  14,872
  15,799
  16,773
Interest expense (income), $m
  23
  18
  24
  30
  37
  44
  51
  58
  66
  74
  82
  91
  100
  109
  119
  129
  140
  151
  162
  174
  186
  199
  213
  227
  242
  257
  273
  290
  308
  327
  346
Earnings before tax, $m
  444
  649
  900
  1,164
  1,440
  1,729
  2,031
  2,345
  2,674
  3,016
  3,372
  3,744
  4,131
  4,536
  4,958
  5,398
  5,859
  6,340
  6,843
  7,369
  7,920
  8,497
  9,102
  9,735
  10,400
  11,097
  11,829
  12,597
  13,404
  14,251
  15,141
Tax expense, $m
  118
  175
  243
  314
  389
  467
  548
  633
  722
  814
  910
  1,011
  1,115
  1,225
  1,339
  1,458
  1,582
  1,712
  1,848
  1,990
  2,138
  2,294
  2,457
  2,629
  2,808
  2,996
  3,194
  3,401
  3,619
  3,848
  4,088
Net income, $m
  326
  473
  657
  850
  1,051
  1,262
  1,482
  1,712
  1,952
  2,201
  2,462
  2,733
  3,016
  3,311
  3,619
  3,941
  4,277
  4,628
  4,995
  5,379
  5,782
  6,203
  6,644
  7,107
  7,592
  8,101
  8,635
  9,196
  9,785
  10,403
  11,053

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  50
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  3,600
  3,918
  4,304
  4,707
  5,128
  5,566
  6,022
  6,496
  6,989
  7,500
  8,032
  8,585
  9,160
  9,758
  10,379
  11,027
  11,701
  12,403
  13,134
  13,898
  14,694
  15,525
  16,393
  17,300
  18,248
  19,239
  20,275
  21,360
  22,495
  23,683
  24,927
Adjusted assets (=assets-cash), $m
  3,550
  3,918
  4,304
  4,707
  5,128
  5,566
  6,022
  6,496
  6,989
  7,500
  8,032
  8,585
  9,160
  9,758
  10,379
  11,027
  11,701
  12,403
  13,134
  13,898
  14,694
  15,525
  16,393
  17,300
  18,248
  19,239
  20,275
  21,360
  22,495
  23,683
  24,927
Revenue / Adjusted assets
  1.254
  1.254
  1.254
  1.254
  1.254
  1.254
  1.254
  1.254
  1.254
  1.254
  1.254
  1.254
  1.254
  1.254
  1.254
  1.254
  1.254
  1.254
  1.254
  1.254
  1.254
  1.254
  1.254
  1.254
  1.254
  1.254
  1.254
  1.254
  1.254
  1.254
  1.254
Average production assets, $m
  2,398
  2,648
  2,909
  3,182
  3,466
  3,762
  4,070
  4,391
  4,724
  5,070
  5,429
  5,803
  6,191
  6,595
  7,016
  7,453
  7,908
  8,383
  8,878
  9,394
  9,932
  10,494
  11,080
  11,693
  12,334
  13,004
  13,704
  14,437
  15,204
  16,008
  16,849
Working capital, $m
  479
  491
  540
  590
  643
  698
  755
  815
  876
  941
  1,007
  1,077
  1,149
  1,224
  1,302
  1,383
  1,467
  1,555
  1,647
  1,743
  1,843
  1,947
  2,056
  2,169
  2,288
  2,413
  2,543
  2,679
  2,821
  2,970
  3,126
Total debt, $m
  428
  554
  700
  853
  1,013
  1,179
  1,351
  1,531
  1,718
  1,912
  2,113
  2,323
  2,541
  2,767
  3,003
  3,248
  3,504
  3,770
  4,047
  4,336
  4,638
  4,953
  5,282
  5,626
  5,985
  6,360
  6,753
  7,164
  7,595
  8,045
  8,517
Total liabilities, $m
  1,359
  1,485
  1,631
  1,784
  1,944
  2,110
  2,282
  2,462
  2,649
  2,843
  3,044
  3,254
  3,472
  3,698
  3,934
  4,179
  4,435
  4,701
  4,978
  5,267
  5,569
  5,884
  6,213
  6,557
  6,916
  7,291
  7,684
  8,095
  8,526
  8,976
  9,448
Total equity, $m
  2,241
  2,433
  2,673
  2,923
  3,185
  3,457
  3,740
  4,034
  4,340
  4,658
  4,988
  5,331
  5,688
  6,059
  6,446
  6,848
  7,266
  7,702
  8,157
  8,630
  9,125
  9,641
  10,180
  10,743
  11,332
  11,947
  12,591
  13,264
  13,969
  14,707
  15,480
Total liabilities and equity, $m
  3,600
  3,918
  4,304
  4,707
  5,129
  5,567
  6,022
  6,496
  6,989
  7,501
  8,032
  8,585
  9,160
  9,757
  10,380
  11,027
  11,701
  12,403
  13,135
  13,897
  14,694
  15,525
  16,393
  17,300
  18,248
  19,238
  20,275
  21,359
  22,495
  23,683
  24,928
Debt-to-equity ratio
  0.191
  0.230
  0.260
  0.290
  0.320
  0.340
  0.360
  0.380
  0.400
  0.410
  0.420
  0.440
  0.450
  0.460
  0.470
  0.470
  0.480
  0.490
  0.500
  0.500
  0.510
  0.510
  0.520
  0.520
  0.530
  0.530
  0.540
  0.540
  0.540
  0.550
  0.550
Adjusted equity ratio
  0.621
  0.621
  0.621
  0.621
  0.621
  0.621
  0.621
  0.621
  0.621
  0.621
  0.621
  0.621
  0.621
  0.621
  0.621
  0.621
  0.621
  0.621
  0.621
  0.621
  0.621
  0.621
  0.621
  0.621
  0.621
  0.621
  0.621
  0.621
  0.621
  0.621
  0.621

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  326
  473
  657
  850
  1,051
  1,262
  1,482
  1,712
  1,952
  2,201
  2,462
  2,733
  3,016
  3,311
  3,619
  3,941
  4,277
  4,628
  4,995
  5,379
  5,782
  6,203
  6,644
  7,107
  7,592
  8,101
  8,635
  9,196
  9,785
  10,403
  11,053
Depreciation, amort., depletion, $m
  197
  202
  222
  243
  265
  287
  311
  335
  361
  387
  414
  443
  473
  503
  536
  569
  604
  640
  678
  717
  758
  801
  846
  893
  942
  993
  1,046
  1,102
  1,161
  1,222
  1,286
Funds from operations, $m
  761
  676
  879
  1,093
  1,316
  1,549
  1,793
  2,047
  2,312
  2,588
  2,876
  3,176
  3,489
  3,815
  4,155
  4,510
  4,880
  5,268
  5,673
  6,096
  6,540
  7,004
  7,490
  8,000
  8,534
  9,094
  9,681
  10,298
  10,945
  11,625
  12,339
Change in working capital, $m
  72
  46
  48
  51
  53
  55
  57
  59
  62
  64
  67
  69
  72
  75
  78
  81
  85
  88
  92
  96
  100
  104
  109
  114
  119
  124
  130
  136
  142
  149
  156
Cash from operations, $m
  689
  629
  831
  1,042
  1,263
  1,495
  1,736
  1,988
  2,250
  2,524
  2,809
  3,107
  3,416
  3,740
  4,077
  4,429
  4,796
  5,180
  5,581
  6,001
  6,440
  6,900
  7,381
  7,886
  8,415
  8,969
  9,551
  10,162
  10,803
  11,476
  12,183
Maintenance CAPEX, $m
  0
  -183
  -202
  -222
  -243
  -265
  -287
  -311
  -335
  -361
  -387
  -414
  -443
  -473
  -503
  -536
  -569
  -604
  -640
  -678
  -717
  -758
  -801
  -846
  -893
  -942
  -993
  -1,046
  -1,102
  -1,161
  -1,222
New CAPEX, $m
  -273
  -250
  -261
  -273
  -284
  -296
  -308
  -320
  -333
  -346
  -360
  -374
  -388
  -404
  -420
  -437
  -456
  -475
  -495
  -516
  -538
  -562
  -587
  -613
  -641
  -670
  -701
  -733
  -767
  -803
  -841
Cash from investing activities, $m
  -263
  -433
  -463
  -495
  -527
  -561
  -595
  -631
  -668
  -707
  -747
  -788
  -831
  -877
  -923
  -973
  -1,025
  -1,079
  -1,135
  -1,194
  -1,255
  -1,320
  -1,388
  -1,459
  -1,534
  -1,612
  -1,694
  -1,779
  -1,869
  -1,964
  -2,063
Free cash flow, $m
  426
  196
  367
  547
  736
  934
  1,141
  1,357
  1,582
  1,818
  2,063
  2,319
  2,585
  2,863
  3,153
  3,456
  3,772
  4,102
  4,447
  4,807
  5,185
  5,580
  5,993
  6,427
  6,882
  7,358
  7,858
  8,383
  8,934
  9,512
  10,120
Issuance/(repayment) of debt, $m
  -181
  141
  146
  153
  159
  166
  173
  180
  187
  194
  202
  210
  218
  227
  236
  245
  255
  266
  277
  289
  302
  315
  329
  344
  359
  376
  393
  411
  430
  450
  472
Issuance/(repurchase) of shares, $m
  -190
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from financing (excl. dividends), $m  
  -392
  141
  146
  153
  159
  166
  173
  180
  187
  194
  202
  210
  218
  227
  236
  245
  255
  266
  277
  289
  302
  315
  329
  344
  359
  376
  393
  411
  430
  450
  472
Total cash flow (excl. dividends), $m
  73
  337
  514
  700
  895
  1,100
  1,313
  1,536
  1,769
  2,012
  2,264
  2,528
  2,803
  3,090
  3,389
  3,701
  4,027
  4,368
  4,724
  5,096
  5,486
  5,895
  6,322
  6,771
  7,241
  7,734
  8,251
  8,794
  9,364
  9,963
  10,591
Retained Cash Flow (-), $m
  -94
  -227
  -240
  -251
  -261
  -272
  -283
  -294
  -306
  -318
  -330
  -343
  -357
  -371
  -386
  -402
  -419
  -436
  -454
  -474
  -494
  -516
  -539
  -563
  -589
  -615
  -644
  -673
  -705
  -738
  -773
Prev. year cash balance distribution, $m
 
  35
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
 
  145
  274
  450
  634
  828
  1,030
  1,242
  1,463
  1,694
  1,934
  2,185
  2,446
  2,718
  3,003
  3,299
  3,608
  3,932
  4,269
  4,623
  4,992
  5,379
  5,783
  6,208
  6,652
  7,118
  7,607
  8,120
  8,659
  9,225
  9,819
Discount rate, %
 
  4.30
  4.52
  4.74
  4.98
  5.23
  5.49
  5.76
  6.05
  6.35
  6.67
  7.00
  7.35
  7.72
  8.11
  8.51
  8.94
  9.39
  9.86
  10.35
  10.87
  11.41
  11.98
  12.58
  13.21
  13.87
  14.56
  15.29
  16.05
  16.86
  17.70
PV of cash for distribution, $m
 
  139
  251
  391
  522
  642
  748
  839
  915
  973
  1,014
  1,037
  1,044
  1,034
  1,008
  969
  917
  855
  786
  712
  634
  556
  480
  407
  339
  277
  222
  174
  134
  101
  74
Current shareholders' claim on cash, %
  100
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0

West Fraser Timber Co. Ltd. produces and sells lumber, panels, and pulp and paper products in Western Canada and the Southern United States. It offers spruce/pine/fir and southern yellow pine lumber, as well as newsprint and wood chip products. The company also provides medium density fiberboard panels, plywood, treated wood, and laminated veneer lumber products; northern bleached softwood kraft pulp used to produce various paper products, including tissues, and printing and writing papers; and bleached chemical thermos-mechanical pulp, which is used to produce coated board products, printing and writing papers, and paper towel/napkin grades, as well as specialty papers and tissue grades. Its wood products are used in residential, commercial, and industrial applications. The company was founded in 1955 and is based in Vancouver, Canada.

FINANCIAL RATIOS  of  West Fraser Timber Co. Ltd. (WFT)

Valuation Ratios
P/E Ratio 15.3
Price to Sales 1.1
Price to Book 2.2
Price to Tangible Book
Price to Cash Flow 7.3
Price to Free Cash Flow 12
Growth Rates
Sales Growth Rate 8.5%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 24.1%
Cap. Spend. - 3 Yr. Gr. Rate -4.2%
Financial Strength
Quick Ratio 3
Current Ratio 0
LT Debt to Equity 18.4%
Total Debt to Equity 19.1%
Interest Coverage 20
Management Effectiveness
Return On Assets 9.5%
Ret/ On Assets - 3 Yr. Avg. 7.1%
Return On Total Capital 12%
Ret/ On T. Cap. - 3 Yr. Avg. 8.9%
Return On Equity 14.9%
Return On Equity - 3 Yr. Avg. 11%
Asset Turnover 1.2
Profitability Ratios
Gross Margin 33.2%
Gross Margin - 3 Yr. Avg. 32.4%
EBITDA Margin 14.9%
EBITDA Margin - 3 Yr. Avg. 12.9%
Operating Margin 10.8%
Oper. Margin - 3 Yr. Avg. 9.1%
Pre-Tax Margin 10%
Pre-Tax Margin - 3 Yr. Avg. 7.8%
Net Profit Margin 7.3%
Net Profit Margin - 3 Yr. Avg. 5.5%
Effective Tax Rate 26.6%
Eff/ Tax Rate - 3 Yr. Avg. 30.3%
Payout Ratio 6.7%

WFT stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the WFT stock intrinsic value calculation we used $4450 million for the last fiscal year's total revenue generated by West Fraser Timber Co. Ltd.. The default revenue input number comes from 2016 income statement of West Fraser Timber Co. Ltd.. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our WFT stock valuation model: a) initial revenue growth rate of 10.4% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 4.3%, whose default value for WFT is calculated based on our internal credit rating of West Fraser Timber Co. Ltd., is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of West Fraser Timber Co. Ltd..
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of WFT stock the variable cost ratio is equal to 33.4%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $2542 million in the base year in the intrinsic value calculation for WFT stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 4.3% for West Fraser Timber Co. Ltd..

Corporate tax rate of 27% is the nominal tax rate for West Fraser Timber Co. Ltd.. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the WFT stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for WFT are equal to 53.9%.

Life of production assets of 13.1 years is the average useful life of capital assets used in West Fraser Timber Co. Ltd. operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for WFT is equal to 10%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $2241 million for West Fraser Timber Co. Ltd. - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 76.083 million for West Fraser Timber Co. Ltd. is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of West Fraser Timber Co. Ltd. at the current share price and the inputted number of shares is $4.9 billion.

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Stock chart of WFT Financial statements of WFT
Valuation of Stocks

The paper VALUATION OF STOCKS: The Quest for Intrinsic Value provides a detailed description of our valuation model and discloses the calculation algorithm.

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