Intrinsic value of Weyerhaeuser - WY

Previous Close

$34.43

  Intrinsic Value

$20.85

stock screener

  Rating & Target

sell

-39%

  Value-price divergence*

+157%

Previous close

$34.43

 
Intrinsic value

$20.85

 
Up/down potential

-39%

 
Rating

sell

 
Value-price divergence*

+157%

Our model is not good at valuating stocks of financial companies, such as WY.

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

We calculate the intrinsic value of WY 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 25.6

 

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, %
  21.33
  20.50
  18.95
  17.56
  16.30
  15.17
  14.15
  13.24
  12.41
  11.67
  11.01
  10.40
  9.86
  9.38
  8.94
  8.55
  8.19
  7.87
  7.58
  7.33
  7.09
  6.88
  6.70
  6.53
  6.37
  6.24
  6.11
  6.00
  5.90
  5.81
  5.73
Revenue, $m
  6,365
  7,670
  9,123
  10,725
  12,473
  14,365
  16,398
  18,569
  20,874
  23,310
  25,875
  28,568
  31,386
  34,329
  37,398
  40,594
  43,919
  47,376
  50,970
  54,704
  58,585
  62,618
  66,811
  71,171
  75,708
  80,429
  85,345
  90,467
  95,806
  101,374
  107,182
Variable operating expenses, $m
 
  6,219
  7,397
  8,695
  10,112
  11,645
  13,293
  15,052
  16,920
  18,894
  20,973
  23,150
  25,434
  27,819
  30,306
  32,896
  35,591
  38,392
  41,305
  44,331
  47,475
  50,744
  54,142
  57,675
  61,351
  65,177
  69,161
  73,312
  77,639
  82,150
  86,858
Fixed operating expenses, $m
 
  353
  361
  370
  380
  389
  399
  409
  419
  430
  440
  451
  463
  474
  486
  498
  511
  523
  537
  550
  564
  578
  592
  607
  622
  638
  654
  670
  687
  704
  722
Total operating expenses, $m
  5,495
  6,572
  7,758
  9,065
  10,492
  12,034
  13,692
  15,461
  17,339
  19,324
  21,413
  23,601
  25,897
  28,293
  30,792
  33,394
  36,102
  38,915
  41,842
  44,881
  48,039
  51,322
  54,734
  58,282
  61,973
  65,815
  69,815
  73,982
  78,326
  82,854
  87,580
Operating income, $m
  870
  1,098
  1,365
  1,659
  1,982
  2,331
  2,707
  3,108
  3,535
  3,987
  4,462
  4,966
  5,489
  6,036
  6,606
  7,200
  7,818
  8,460
  9,129
  9,824
  10,546
  11,296
  12,077
  12,889
  13,734
  14,614
  15,530
  16,485
  17,481
  18,519
  19,603
EBITDA, $m
  1,435
  1,292
  1,595
  1,929
  2,295
  2,691
  3,117
  3,573
  4,057
  4,569
  5,108
  5,674
  6,267
  6,887
  7,533
  8,206
  8,907
  9,635
  10,393
  11,180
  11,999
  12,849
  13,734
  14,654
  15,612
  16,608
  17,647
  18,729
  19,857
  21,033
  22,261
Interest expense (income), $m
  446
  492
  637
  797
  975
  1,168
  1,377
  1,602
  1,842
  2,097
  2,367
  2,651
  2,949
  3,260
  3,586
  3,925
  4,279
  4,647
  5,029
  5,427
  5,840
  6,269
  6,715
  7,179
  7,661
  8,163
  8,686
  9,229
  9,796
  10,387
  11,003
Earnings before tax, $m
  504
  605
  728
  862
  1,007
  1,163
  1,329
  1,506
  1,693
  1,889
  2,095
  2,315
  2,540
  2,775
  3,020
  3,274
  3,539
  3,814
  4,100
  4,397
  4,706
  5,027
  5,362
  5,710
  6,073
  6,451
  6,845
  7,256
  7,685
  8,133
  8,601
Tax expense, $m
  89
  163
  197
  233
  272
  314
  359
  407
  457
  510
  566
  625
  686
  749
  815
  884
  955
  1,030
  1,107
  1,187
  1,271
  1,357
  1,448
  1,542
  1,640
  1,742
  1,848
  1,959
  2,075
  2,196
  2,322
Net income, $m
  1,027
  442
  531
  629
  735
  849
  970
  1,099
  1,236
  1,379
  1,530
  1,690
  1,855
  2,026
  2,204
  2,390
  2,583
  2,784
  2,993
  3,210
  3,435
  3,670
  3,914
  4,168
  4,433
  4,709
  4,997
  5,297
  5,610
  5,937
  6,278

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  676
  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
  19,243
  22,361
  26,598
  31,268
  36,364
  41,881
  47,808
  54,136
  60,856
  67,960
  75,439
  83,288
  91,503
  100,084
  109,032
  118,349
  128,044
  138,124
  148,600
  159,487
  170,801
  182,560
  194,784
  207,496
  220,722
  234,487
  248,820
  263,753
  279,318
  295,550
  312,485
Adjusted assets (=assets-cash), $m
  18,567
  22,361
  26,598
  31,268
  36,364
  41,881
  47,808
  54,136
  60,856
  67,960
  75,439
  83,288
  91,503
  100,084
  109,032
  118,349
  128,044
  138,124
  148,600
  159,487
  170,801
  182,560
  194,784
  207,496
  220,722
  234,487
  248,820
  263,753
  279,318
  295,550
  312,485
Revenue / Adjusted assets
  0.343
  0.343
  0.343
  0.343
  0.343
  0.343
  0.343
  0.343
  0.343
  0.343
  0.343
  0.343
  0.343
  0.343
  0.343
  0.343
  0.343
  0.343
  0.343
  0.343
  0.343
  0.343
  0.343
  0.343
  0.343
  0.343
  0.343
  0.343
  0.343
  0.343
  0.343
Average production assets, $m
  1,576
  1,902
  2,263
  2,660
  3,093
  3,563
  4,067
  4,605
  5,177
  5,781
  6,417
  7,085
  7,784
  8,514
  9,275
  10,067
  10,892
  11,749
  12,641
  13,567
  14,529
  15,529
  16,569
  17,650
  18,775
  19,946
  21,166
  22,436
  23,760
  25,141
  26,581
Working capital, $m
  416
  23
  27
  32
  37
  43
  49
  56
  63
  70
  78
  86
  94
  103
  112
  122
  132
  142
  153
  164
  176
  188
  200
  214
  227
  241
  256
  271
  287
  304
  322
Total debt, $m
  7,122
  8,843
  11,076
  13,537
  16,223
  19,130
  22,254
  25,589
  29,130
  32,874
  36,815
  40,952
  45,281
  49,803
  54,519
  59,429
  64,538
  69,850
  75,371
  81,109
  87,071
  93,268
  99,710
  106,410
  113,379
  120,634
  128,187
  136,057
  144,260
  152,814
  161,739
Total liabilities, $m
  10,063
  11,784
  14,017
  16,478
  19,164
  22,071
  25,195
  28,530
  32,071
  35,815
  39,756
  43,893
  48,222
  52,744
  57,460
  62,370
  67,479
  72,791
  78,312
  84,050
  90,012
  96,209
  102,651
  109,351
  116,320
  123,575
  131,128
  138,998
  147,201
  155,755
  164,680
Total equity, $m
  9,180
  10,577
  12,581
  14,790
  17,200
  19,810
  22,613
  25,606
  28,785
  32,145
  35,683
  39,395
  43,281
  47,340
  51,572
  55,979
  60,565
  65,332
  70,288
  75,438
  80,789
  86,351
  92,133
  98,146
  104,401
  110,912
  117,692
  124,755
  132,117
  139,795
  147,805
Total liabilities and equity, $m
  19,243
  22,361
  26,598
  31,268
  36,364
  41,881
  47,808
  54,136
  60,856
  67,960
  75,439
  83,288
  91,503
  100,084
  109,032
  118,349
  128,044
  138,123
  148,600
  159,488
  170,801
  182,560
  194,784
  207,497
  220,721
  234,487
  248,820
  263,753
  279,318
  295,550
  312,485
Debt-to-equity ratio
  0.776
  0.840
  0.880
  0.920
  0.940
  0.970
  0.980
  1.000
  1.010
  1.020
  1.030
  1.040
  1.050
  1.050
  1.060
  1.060
  1.070
  1.070
  1.070
  1.080
  1.080
  1.080
  1.080
  1.080
  1.090
  1.090
  1.090
  1.090
  1.090
  1.090
  1.090
Adjusted equity ratio
  0.458
  0.473
  0.473
  0.473
  0.473
  0.473
  0.473
  0.473
  0.473
  0.473
  0.473
  0.473
  0.473
  0.473
  0.473
  0.473
  0.473
  0.473
  0.473
  0.473
  0.473
  0.473
  0.473
  0.473
  0.473
  0.473
  0.473
  0.473
  0.473
  0.473
  0.473

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  1,027
  442
  531
  629
  735
  849
  970
  1,099
  1,236
  1,379
  1,530
  1,690
  1,855
  2,026
  2,204
  2,390
  2,583
  2,784
  2,993
  3,210
  3,435
  3,670
  3,914
  4,168
  4,433
  4,709
  4,997
  5,297
  5,610
  5,937
  6,278
Depreciation, amort., depletion, $m
  565
  194
  230
  270
  313
  360
  411
  465
  522
  582
  646
  708
  778
  851
  927
  1,007
  1,089
  1,175
  1,264
  1,357
  1,453
  1,553
  1,657
  1,765
  1,878
  1,995
  2,117
  2,244
  2,376
  2,514
  2,658
Funds from operations, $m
  697
  636
  762
  899
  1,048
  1,209
  1,381
  1,564
  1,757
  1,961
  2,175
  2,399
  2,633
  2,877
  3,132
  3,397
  3,672
  3,959
  4,257
  4,566
  4,888
  5,223
  5,571
  5,933
  6,311
  6,704
  7,113
  7,540
  7,986
  8,451
  8,937
Change in working capital, $m
  -38
  4
  4
  5
  5
  6
  6
  7
  7
  7
  8
  8
  8
  9
  9
  10
  10
  10
  11
  11
  12
  12
  13
  13
  14
  14
  15
  15
  16
  17
  17
Cash from operations, $m
  735
  632
  757
  894
  1,043
  1,203
  1,375
  1,557
  1,750
  1,954
  2,168
  2,390
  2,624
  2,868
  3,123
  3,387
  3,662
  3,949
  4,246
  4,555
  4,877
  5,211
  5,558
  5,920
  6,297
  6,689
  7,098
  7,525
  7,970
  8,434
  8,919
Maintenance CAPEX, $m
  0
  -158
  -190
  -226
  -266
  -309
  -356
  -407
  -461
  -518
  -578
  -642
  -708
  -778
  -851
  -927
  -1,007
  -1,089
  -1,175
  -1,264
  -1,357
  -1,453
  -1,553
  -1,657
  -1,765
  -1,878
  -1,995
  -2,117
  -2,244
  -2,376
  -2,514
New CAPEX, $m
  -510
  -326
  -360
  -397
  -434
  -469
  -504
  -538
  -572
  -604
  -636
  -668
  -699
  -730
  -761
  -793
  -825
  -857
  -891
  -926
  -962
  -1,000
  -1,040
  -1,081
  -1,125
  -1,171
  -1,219
  -1,270
  -1,324
  -1,381
  -1,441
Cash from investing activities, $m
  2,559
  -484
  -550
  -623
  -700
  -778
  -860
  -945
  -1,033
  -1,122
  -1,214
  -1,310
  -1,407
  -1,508
  -1,612
  -1,720
  -1,832
  -1,946
  -2,066
  -2,190
  -2,319
  -2,453
  -2,593
  -2,738
  -2,890
  -3,049
  -3,214
  -3,387
  -3,568
  -3,757
  -3,955
Free cash flow, $m
  3,294
  148
  207
  271
  344
  425
  514
  612
  718
  832
  953
  1,081
  1,217
  1,360
  1,510
  1,667
  1,831
  2,002
  2,180
  2,365
  2,557
  2,758
  2,966
  3,182
  3,407
  3,641
  3,884
  4,138
  4,402
  4,677
  4,965
Issuance/(repayment) of debt, $m
  -725
  2,003
  2,233
  2,461
  2,686
  2,907
  3,124
  3,335
  3,542
  3,743
  3,941
  4,136
  4,330
  4,522
  4,715
  4,910
  5,109
  5,312
  5,521
  5,738
  5,962
  6,197
  6,442
  6,699
  6,970
  7,254
  7,554
  7,870
  8,203
  8,554
  8,925
Issuance/(repurchase) of shares, $m
  -1,942
  1,349
  1,473
  1,579
  1,676
  1,760
  1,833
  1,894
  1,943
  1,981
  2,008
  2,023
  2,031
  2,033
  2,028
  2,017
  2,002
  1,984
  1,963
  1,940
  1,916
  1,892
  1,868
  1,845
  1,823
  1,802
  1,783
  1,767
  1,752
  1,741
  1,732
Cash from financing (excl. dividends), $m  
  -2,676
  3,352
  3,706
  4,040
  4,362
  4,667
  4,957
  5,229
  5,485
  5,724
  5,949
  6,159
  6,361
  6,555
  6,743
  6,927
  7,111
  7,296
  7,484
  7,678
  7,878
  8,089
  8,310
  8,544
  8,793
  9,056
  9,337
  9,637
  9,955
  10,295
  10,657
Total cash flow (excl. dividends), $m
  618
  3,501
  3,913
  4,311
  4,705
  5,092
  5,471
  5,841
  6,203
  6,556
  6,903
  7,240
  7,578
  7,915
  8,253
  8,595
  8,942
  9,298
  9,664
  10,042
  10,436
  10,846
  11,276
  11,726
  12,199
  12,697
  13,221
  13,774
  14,357
  14,972
  15,621
Retained Cash Flow (-), $m
  -4,311
  -1,791
  -2,004
  -2,209
  -2,411
  -2,609
  -2,804
  -2,993
  -3,179
  -3,360
  -3,538
  -3,713
  -3,886
  -4,059
  -4,232
  -4,407
  -4,585
  -4,768
  -4,955
  -5,150
  -5,351
  -5,562
  -5,782
  -6,013
  -6,256
  -6,511
  -6,780
  -7,063
  -7,362
  -7,678
  -8,010
Prev. year cash balance distribution, $m
 
  394
  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
 
  2,104
  1,908
  2,102
  2,294
  2,483
  2,668
  2,848
  3,024
  3,196
  3,365
  3,527
  3,692
  3,856
  4,021
  4,188
  4,357
  4,530
  4,708
  4,893
  5,085
  5,285
  5,494
  5,713
  5,944
  6,186
  6,442
  6,711
  6,995
  7,295
  7,611
Discount rate, %
 
  7.80
  8.19
  8.60
  9.03
  9.48
  9.95
  10.45
  10.98
  11.52
  12.10
  12.71
  13.34
  14.01
  14.71
  15.44
  16.22
  17.03
  17.88
  18.77
  19.71
  20.70
  21.73
  22.82
  23.96
  25.16
  26.41
  27.73
  29.12
  30.58
  32.11
PV of cash for distribution, $m
 
  1,952
  1,630
  1,642
  1,624
  1,579
  1,510
  1,420
  1,315
  1,198
  1,074
  946
  822
  702
  589
  486
  393
  313
  244
  186
  139
  102
  73
  51
  34
  23
  15
  9
  5
  3
  2
Current shareholders' claim on cash, %
  100
  94.8
  90.3
  86.4
  83.0
  80.1
  77.5
  75.3
  73.3
  71.5
  69.9
  68.5
  67.3
  66.2
  65.2
  64.3
  63.5
  62.7
  62.1
  61.5
  60.9
  60.4
  59.9
  59.5
  59.1
  58.7
  58.4
  58.1
  57.8
  57.5
  57.3

Weyerhaeuser Co. is a real estate investment trust. It primarily invests in United States. The firm operates under four business segments, timberlands, wood products, cellulose fibers and real estate. It owns timberlands primarily in the U.S and has long-term licenses in Canada. The firm manufactures wood and specialty cellulose fibers products, and develops real estate, primarily as a builder of single-family homes. Weyerhaeuser Co was founded in 1900 and is based in Seattle, Washington.

FINANCIAL RATIOS  of  Weyerhaeuser (WY)

Valuation Ratios
P/E Ratio 25.1
Price to Sales 4
Price to Book 2.8
Price to Tangible Book
Price to Cash Flow 35.1
Price to Free Cash Flow 114.5
Growth Rates
Sales Growth Rate 21.3%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 5.6%
Cap. Spend. - 3 Yr. Gr. Rate 11.7%
Financial Strength
Quick Ratio 2
Current Ratio 0
LT Debt to Equity 74.5%
Total Debt to Equity 77.6%
Interest Coverage 2
Management Effectiveness
Return On Assets 8.7%
Ret/ On Assets - 3 Yr. Avg. 10.3%
Return On Total Capital 7.8%
Ret/ On T. Cap. - 3 Yr. Avg. 9.5%
Return On Equity 14.6%
Return On Equity - 3 Yr. Avg. 18.3%
Asset Turnover 0.4
Profitability Ratios
Gross Margin 22.6%
Gross Margin - 3 Yr. Avg. 22.6%
EBITDA Margin 23.8%
EBITDA Margin - 3 Yr. Avg. 24.6%
Operating Margin 13.7%
Oper. Margin - 3 Yr. Avg. 14.7%
Pre-Tax Margin 7.9%
Pre-Tax Margin - 3 Yr. Avg. 9.1%
Net Profit Margin 16.1%
Net Profit Margin - 3 Yr. Avg. 19.7%
Effective Tax Rate 17.7%
Eff/ Tax Rate - 3 Yr. Avg. 3.9%
Payout Ratio 92.9%

WY stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the WY stock intrinsic value calculation we used $6365 million for the last fiscal year's total revenue generated by Weyerhaeuser. The default revenue input number comes from 2016 income statement of Weyerhaeuser. 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 WY stock valuation model: a) initial revenue growth rate of 20.5% 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 7.8%, whose default value for WY is calculated based on our internal credit rating of Weyerhaeuser, 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 Weyerhaeuser.
    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 WY stock the variable cost ratio is equal to 81.1%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $344 million in the base year in the intrinsic value calculation for WY 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 7.2% for Weyerhaeuser.

Corporate tax rate of 27% is the nominal tax rate for Weyerhaeuser. 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 WY 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 WY are equal to 24.8%.

Life of production assets of 10 years is the average useful life of capital assets used in Weyerhaeuser 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 WY is equal to 0.3%. 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 - $9180 million for Weyerhaeuser - 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 744.056 million for Weyerhaeuser 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 Weyerhaeuser at the current share price and the inputted number of shares is $25.6 billion.

RELATED COMPANIES Price Int.Val. Rating
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COMPANY NEWS

▶ Weyerhaeuser will spend millions to fix stinky wood in homes   [Jul-19-17 09:55PM  American City Business Journals]
▶ Top Ranked Income Stocks to Buy for July 10th   [Jul-10-17 10:29AM  Zacks]
▶ Top Ranked Income Stocks to Buy for June 23rd   [Jun-23-17 11:52AM  Zacks]
▶ Top Ranked Income Stocks to Buy for June 19th   [Jun-19-17 10:31AM  Zacks]
▶ ETFs with exposure to Weyerhaeuser Co. : June 15, 2017   [Jun-15-17 03:52PM  Capital Cube]
▶ 3 Top Dividend Stocks in Lumber   [10:00AM  Motley Fool]
▶ Top Ranked Income Stocks to Buy for May 24th   [May-24-17 10:28AM  Zacks]
▶ 3 Top Lumber Stocks to Consider Buying in 2017   [May-22-17 07:53AM  Motley Fool]
▶ Weyerhaeuser Company declares dividend on common shares   [May-18-17 08:44PM  PR Newswire]
▶ 5 Top Dividend Stocks in the Forestry Industry   [May-16-17 04:30PM  Motley Fool]
▶ First Eagle Investment Comments on Weyerhaeuser   [May-01-17 04:03PM  GuruFocus.com]
▶ Enthusiasm for buybacks has faded   [12:58PM  Yahoo Finance]
▶ Weyerhaeuser beats 1Q profit forecasts   [05:01AM  Associated Press]
▶ Trump moves to impose tariff on Canadian lumber   [10:51AM  Yahoo Finance Video]
▶ Multiple Stocks Reach 52-Week Highs   [Apr-18-17 04:42PM  GuruFocus.com]
▶ CNBC IQ 100 Index is up 27% in the year   [Apr-10-17 12:19PM  CNBC Videos]
▶ ETFs with exposure to Weyerhaeuser Co. : April 7, 2017   [Apr-07-17 05:48PM  Capital Cube]
▶ Real estate's tough run   [Mar-27-17 06:48AM  CNBC Videos]
▶ [$$] Lumber Prices Headed Higher   [Mar-25-17 02:43AM  at Barrons.com]
▶ Weyerhauser Is Making an (Upside) Break For It   [Feb-13-17 02:59PM  TheStreet.com]
▶ This Global Paper Giant Looks Promising   [Feb-10-17 11:36AM  GuruFocus.com]
Stock chart of WY Financial statements of WY Annual reports of WY
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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