Intrinsic value of Weyerhaeuser - WY

Previous Close

$36.25

  Intrinsic Value

$2.94

stock screener

  Rating & Target

str. sell

-92%

Previous close

$36.25

 
Intrinsic value

$2.94

 
Up/down potential

-92%

 
Rating

str. sell

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

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

Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Shares outstanding, mln

 

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
  13.10
  12.29
  11.56
  10.90
  10.31
  9.78
  9.30
  8.87
  8.49
  8.14
  7.82
  7.54
  7.29
  7.06
  6.85
  6.67
  6.50
  6.35
  6.22
  6.09
  5.98
  5.89
  5.80
  5.72
  5.65
  5.58
  5.52
  5.47
  5.42
  5.38
Revenue, $m
  6,365
  8,139
  9,139
  10,195
  11,307
  12,474
  13,694
  14,968
  16,296
  17,679
  19,118
  20,614
  22,169
  23,784
  25,463
  27,208
  29,022
  30,909
  32,872
  34,915
  37,043
  39,260
  41,571
  43,981
  46,496
  49,121
  51,863
  54,727
  57,721
  60,852
  64,127
Variable operating expenses, $m
 
  5,111
  5,738
  6,401
  7,099
  7,830
  8,596
  9,396
  10,229
  11,097
  12,000
  12,934
  13,910
  14,923
  15,977
  17,072
  18,210
  19,394
  20,625
  21,907
  23,242
  24,633
  26,083
  27,596
  29,174
  30,821
  32,541
  34,338
  36,217
  38,181
  40,236
Fixed operating expenses, $m
 
  1,615
  1,650
  1,687
  1,724
  1,762
  1,800
  1,840
  1,880
  1,922
  1,964
  2,007
  2,051
  2,097
  2,143
  2,190
  2,238
  2,287
  2,338
  2,389
  2,442
  2,495
  2,550
  2,606
  2,664
  2,722
  2,782
  2,843
  2,906
  2,970
  3,035
Total operating expenses, $m
  5,495
  6,726
  7,388
  8,088
  8,823
  9,592
  10,396
  11,236
  12,109
  13,019
  13,964
  14,941
  15,961
  17,020
  18,120
  19,262
  20,448
  21,681
  22,963
  24,296
  25,684
  27,128
  28,633
  30,202
  31,838
  33,543
  35,323
  37,181
  39,123
  41,151
  43,271
Operating income, $m
  870
  1,413
  1,750
  2,108
  2,485
  2,881
  3,297
  3,732
  4,187
  4,661
  5,154
  5,673
  6,208
  6,764
  7,344
  7,947
  8,574
  9,228
  9,909
  10,619
  11,359
  12,131
  12,937
  13,779
  14,659
  15,578
  16,540
  17,546
  18,599
  19,701
  20,856
EBITDA, $m
  1,435
  3,203
  3,760
  4,349
  4,970
  5,622
  6,306
  7,020
  7,766
  8,544
  9,353
  10,195
  11,071
  11,983
  12,930
  13,916
  14,942
  16,009
  17,121
  18,279
  19,486
  20,745
  22,058
  23,429
  24,860
  26,355
  27,918
  29,553
  31,263
  33,052
  34,925
Interest expense (income), $m
  446
  377
  447
  521
  599
  681
  767
  858
  952
  1,050
  1,152
  1,258
  1,369
  1,484
  1,603
  1,727
  1,856
  1,990
  2,130
  2,275
  2,426
  2,583
  2,747
  2,917
  3,095
  3,281
  3,475
  3,678
  3,889
  4,111
  4,342
Earnings before tax, $m
  504
  1,036
  1,303
  1,587
  1,886
  2,200
  2,530
  2,875
  3,235
  3,611
  4,002
  4,414
  4,839
  5,281
  5,741
  6,219
  6,718
  7,238
  7,779
  8,344
  8,933
  9,548
  10,191
  10,862
  11,563
  12,297
  13,064
  13,868
  14,709
  15,590
  16,514
Tax expense, $m
  89
  280
  352
  428
  509
  594
  683
  776
  873
  975
  1,081
  1,192
  1,306
  1,426
  1,550
  1,679
  1,814
  1,954
  2,100
  2,253
  2,412
  2,578
  2,751
  2,933
  3,122
  3,320
  3,527
  3,744
  3,971
  4,209
  4,459
Net income, $m
  1,027
  756
  951
  1,158
  1,377
  1,606
  1,847
  2,099
  2,362
  2,636
  2,922
  3,222
  3,532
  3,855
  4,191
  4,540
  4,904
  5,284
  5,679
  6,091
  6,521
  6,970
  7,439
  7,929
  8,441
  8,977
  9,537
  10,124
  10,738
  11,381
  12,055

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
  20,449
  22,962
  25,617
  28,410
  31,341
  34,407
  37,608
  40,945
  44,420
  48,035
  51,794
  55,700
  59,759
  63,978
  68,362
  72,920
  77,661
  82,593
  87,727
  93,073
  98,643
  104,449
  110,505
  116,824
  123,420
  130,308
  137,506
  145,029
  152,895
  161,123
Adjusted assets (=assets-cash), $m
  18,567
  20,449
  22,962
  25,617
  28,410
  31,341
  34,407
  37,608
  40,945
  44,420
  48,035
  51,794
  55,700
  59,759
  63,978
  68,362
  72,920
  77,661
  82,593
  87,727
  93,073
  98,643
  104,449
  110,505
  116,824
  123,420
  130,308
  137,506
  145,029
  152,895
  161,123
Revenue / Adjusted assets
  0.343
  0.398
  0.398
  0.398
  0.398
  0.398
  0.398
  0.398
  0.398
  0.398
  0.398
  0.398
  0.398
  0.398
  0.398
  0.398
  0.398
  0.398
  0.398
  0.398
  0.398
  0.398
  0.398
  0.398
  0.398
  0.398
  0.398
  0.398
  0.398
  0.398
  0.398
Average production assets, $m
  1,576
  17,856
  20,051
  22,369
  24,808
  27,367
  30,044
  32,840
  35,754
  38,788
  41,945
  45,227
  48,638
  52,183
  55,866
  59,695
  63,675
  67,814
  72,121
  76,604
  81,272
  86,136
  91,207
  96,494
  102,012
  107,772
  113,787
  120,072
  126,641
  133,510
  140,695
Working capital, $m
  416
  155
  174
  194
  215
  237
  260
  284
  310
  336
  363
  392
  421
  452
  484
  517
  551
  587
  625
  663
  704
  746
  790
  836
  883
  933
  985
  1,040
  1,097
  1,156
  1,218
Total debt, $m
  7,122
  7,711
  8,985
  10,331
  11,747
  13,233
  14,787
  16,410
  18,102
  19,864
  21,697
  23,602
  25,583
  27,641
  29,780
  32,003
  34,314
  36,717
  39,218
  41,820
  44,531
  47,355
  50,299
  53,369
  56,573
  59,917
  63,409
  67,058
  70,873
  74,861
  79,032
Total liabilities, $m
  10,063
  10,368
  11,642
  12,988
  14,404
  15,890
  17,444
  19,067
  20,759
  22,521
  24,354
  26,259
  28,240
  30,298
  32,437
  34,660
  36,971
  39,374
  41,875
  44,477
  47,188
  50,012
  52,956
  56,026
  59,230
  62,574
  66,066
  69,715
  73,530
  77,518
  81,689
Total equity, $m
  9,180
  10,081
  11,320
  12,629
  14,006
  15,451
  16,962
  18,541
  20,186
  21,899
  23,681
  25,534
  27,460
  29,461
  31,541
  33,702
  35,950
  38,287
  40,718
  43,249
  45,885
  48,631
  51,494
  54,479
  57,594
  60,846
  64,242
  67,790
  71,499
  75,377
  79,434
Total liabilities and equity, $m
  19,243
  20,449
  22,962
  25,617
  28,410
  31,341
  34,406
  37,608
  40,945
  44,420
  48,035
  51,793
  55,700
  59,759
  63,978
  68,362
  72,921
  77,661
  82,593
  87,726
  93,073
  98,643
  104,450
  110,505
  116,824
  123,420
  130,308
  137,505
  145,029
  152,895
  161,123
Debt-to-equity ratio
  0.776
  0.760
  0.790
  0.820
  0.840
  0.860
  0.870
  0.890
  0.900
  0.910
  0.920
  0.920
  0.930
  0.940
  0.940
  0.950
  0.950
  0.960
  0.960
  0.970
  0.970
  0.970
  0.980
  0.980
  0.980
  0.980
  0.990
  0.990
  0.990
  0.990
  0.990
Adjusted equity ratio
  0.458
  0.493
  0.493
  0.493
  0.493
  0.493
  0.493
  0.493
  0.493
  0.493
  0.493
  0.493
  0.493
  0.493
  0.493
  0.493
  0.493
  0.493
  0.493
  0.493
  0.493
  0.493
  0.493
  0.493
  0.493
  0.493
  0.493
  0.493
  0.493
  0.493
  0.493

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  1,027
  756
  951
  1,158
  1,377
  1,606
  1,847
  2,099
  2,362
  2,636
  2,922
  3,222
  3,532
  3,855
  4,191
  4,540
  4,904
  5,284
  5,679
  6,091
  6,521
  6,970
  7,439
  7,929
  8,441
  8,977
  9,537
  10,124
  10,738
  11,381
  12,055
Depreciation, amort., depletion, $m
  565
  1,790
  2,009
  2,241
  2,485
  2,741
  3,008
  3,288
  3,579
  3,883
  4,199
  4,523
  4,864
  5,218
  5,587
  5,969
  6,367
  6,781
  7,212
  7,660
  8,127
  8,614
  9,121
  9,649
  10,201
  10,777
  11,379
  12,007
  12,664
  13,351
  14,069
Funds from operations, $m
  697
  2,546
  2,960
  3,399
  3,861
  4,347
  4,855
  5,387
  5,941
  6,519
  7,120
  7,745
  8,396
  9,073
  9,777
  10,510
  11,272
  12,065
  12,891
  13,752
  14,649
  15,584
  16,560
  17,579
  18,642
  19,754
  20,916
  22,131
  23,402
  24,732
  26,125
Change in working capital, $m
  -38
  18
  19
  20
  21
  22
  23
  24
  25
  26
  27
  28
  30
  31
  32
  33
  34
  36
  37
  39
  40
  42
  44
  46
  48
  50
  52
  54
  57
  59
  62
Cash from operations, $m
  735
  2,528
  2,941
  3,379
  3,840
  4,325
  4,832
  5,362
  5,916
  6,492
  7,093
  7,717
  8,366
  9,042
  9,745
  10,476
  11,237
  12,029
  12,854
  13,713
  14,608
  15,542
  16,516
  17,533
  18,595
  19,704
  20,864
  22,076
  23,345
  24,672
  26,062
Maintenance CAPEX, $m
  0
  -1,579
  -1,786
  -2,005
  -2,237
  -2,481
  -2,737
  -3,004
  -3,284
  -3,575
  -3,879
  -4,195
  -4,523
  -4,864
  -5,218
  -5,587
  -5,969
  -6,367
  -6,781
  -7,212
  -7,660
  -8,127
  -8,614
  -9,121
  -9,649
  -10,201
  -10,777
  -11,379
  -12,007
  -12,664
  -13,351
New CAPEX, $m
  -510
  -2,067
  -2,195
  -2,318
  -2,439
  -2,559
  -2,677
  -2,796
  -2,914
  -3,034
  -3,157
  -3,282
  -3,411
  -3,545
  -3,684
  -3,829
  -3,980
  -4,139
  -4,307
  -4,483
  -4,668
  -4,864
  -5,070
  -5,288
  -5,517
  -5,760
  -6,015
  -6,285
  -6,569
  -6,869
  -7,185
Cash from investing activities, $m
  2,559
  -3,646
  -3,981
  -4,323
  -4,676
  -5,040
  -5,414
  -5,800
  -6,198
  -6,609
  -7,036
  -7,477
  -7,934
  -8,409
  -8,902
  -9,416
  -9,949
  -10,506
  -11,088
  -11,695
  -12,328
  -12,991
  -13,684
  -14,409
  -15,166
  -15,961
  -16,792
  -17,664
  -18,576
  -19,533
  -20,536
Free cash flow, $m
  3,294
  -1,118
  -1,039
  -944
  -836
  -715
  -582
  -438
  -283
  -117
  57
  240
  433
  634
  844
  1,061
  1,288
  1,522
  1,766
  2,018
  2,279
  2,551
  2,832
  3,124
  3,428
  3,743
  4,071
  4,413
  4,769
  5,140
  5,526
Issuance/(repayment) of debt, $m
  -725
  1,208
  1,274
  1,346
  1,416
  1,486
  1,554
  1,623
  1,692
  1,762
  1,833
  1,906
  1,980
  2,058
  2,139
  2,223
  2,311
  2,403
  2,501
  2,603
  2,711
  2,824
  2,944
  3,070
  3,204
  3,344
  3,493
  3,649
  3,814
  3,988
  4,172
Issuance/(repurchase) of shares, $m
  -1,942
  426
  288
  150
  1
  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  
  -2,676
  1,634
  1,562
  1,496
  1,417
  1,486
  1,554
  1,623
  1,692
  1,762
  1,833
  1,906
  1,980
  2,058
  2,139
  2,223
  2,311
  2,403
  2,501
  2,603
  2,711
  2,824
  2,944
  3,070
  3,204
  3,344
  3,493
  3,649
  3,814
  3,988
  4,172
Total cash flow (excl. dividends), $m
  618
  515
  523
  552
  581
  771
  973
  1,186
  1,410
  1,644
  1,890
  2,146
  2,413
  2,692
  2,982
  3,284
  3,599
  3,926
  4,266
  4,621
  4,990
  5,375
  5,776
  6,194
  6,631
  7,087
  7,564
  8,062
  8,583
  9,128
  9,698
Retained Cash Flow (-), $m
  -4,311
  -1,182
  -1,239
  -1,309
  -1,377
  -1,445
  -1,512
  -1,578
  -1,645
  -1,713
  -1,782
  -1,853
  -1,926
  -2,001
  -2,080
  -2,162
  -2,247
  -2,337
  -2,432
  -2,531
  -2,636
  -2,746
  -2,863
  -2,985
  -3,115
  -3,252
  -3,396
  -3,548
  -3,709
  -3,878
  -4,056
Prev. year cash balance distribution, $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 flow adjustment, $m
 
  43
  49
  55
  61
  68
  75
  82
  90
  98
  106
  115
  124
  133
  143
  153
  163
  174
  185
  197
  209
  222
  236
  249
  264
  279
  295
  311
  328
  346
  365
Cash available for distribution, $m
 
  -667
  -716
  -756
  -796
  -674
  -539
  -393
  -236
  -69
  108
  293
  487
  691
  903
  1,123
  1,351
  1,589
  1,835
  2,090
  2,354
  2,629
  2,913
  3,209
  3,516
  3,835
  4,168
  4,514
  4,874
  5,250
  5,642
Discount rate, %
 
  6.60
  6.93
  7.28
  7.64
  8.02
  8.42
  8.84
  9.29
  9.75
  10.24
  10.75
  11.29
  11.85
  12.45
  13.07
  13.72
  14.41
  15.13
  15.88
  16.68
  17.51
  18.39
  19.31
  20.27
  21.29
  22.35
  23.47
  24.64
  25.87
  27.17
PV of cash for distribution, $m
 
  -626
  -626
  -613
  -593
  -458
  -332
  -217
  -116
  -30
  41
  95
  135
  161
  175
  178
  173
  161
  145
  127
  108
  89
  71
  55
  42
  31
  22
  15
  10
  7
  4
Current shareholders' claim on cash, %
  100
  98.5
  97.6
  97.1
  97.1
  97.1
  97.1
  97.1
  97.1
  97.1
  97.1
  97.1
  97.1
  97.1
  97.1
  97.1
  97.1
  97.1
  97.1
  97.1
  97.1
  97.1
  97.1
  97.1
  97.1
  97.1
  97.1
  97.1
  97.1
  97.1
  97.1

Weyerhaeuser Company is a timber, land and forest products company. As of December 31, 2016, the Company owned or controlled 13.1 million acres of timberlands, primarily in the United States, and manages additional timberlands under long-term licenses in Canada. The Company's segments include Timberlands; Real Estate, Energy and Natural Resources (Real Estate & ENR), and Wood Products. The Timberlands segment's offerings include logs, timber and recreational access via leases. The Real Estate & ENR segment includes sales of timberlands; rights to explore for and extract hard minerals, oil and gas production, and coal, and equity interests in its Real Estate Development Ventures. The Wood Products segment includes the manufacturing and distribution of wood products. The Wood Products segment is engaged in softwood lumber, engineered wood products, structural panels, medium density fiberboard and building materials distribution.

FINANCIAL RATIOS  of  Weyerhaeuser (WY)

Valuation Ratios
P/E Ratio 26.4
Price to Sales 4.3
Price to Book 3
Price to Tangible Book
Price to Cash Flow 36.9
Price to Free Cash Flow 120.6
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 $7196 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 13.1% 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 6.6%, 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 62.8%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $1580 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 5.8% 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 0.6%.

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 219.4%.

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 1.9%. 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 - $8899 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 753 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 $27.3 billion.

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COMPANY NEWS

▶ 10 Best Blue-Chip Stocks to Buy in July   [Jul-03-18 02:25PM  InvestorPlace]
▶ Inflation is a concern, but 'far from permanent'   [May-24-18 07:36PM  CNBC Videos]
▶ Top Ranked Income Stocks to Buy for May 21st   [May-21-18 09:15AM  Zacks]
▶ Weyerhaeuser Company declares dividend on common shares   [May-17-18 11:42PM  PR Newswire]
▶ 3 Ways to Trade a Rise in Timber Stocks   [09:05AM  Investopedia]
▶ Weyerhaeuser: 1Q Earnings Snapshot   [05:06AM  Associated Press]
▶ Is Weyerhaeuser Company (NYSE:WY) A Great Dividend Stock?   [Apr-26-18 09:14PM  Simply Wall St.]
▶ REITs Stumble But Still Have a Place in My Portfolio   [Apr-18-18 12:00PM  TheStreet.com]
▶ Edited Transcript of WY presentation 8-Mar-17 1:40pm GMT   [Apr-10-18 11:00AM  Thomson Reuters StreetEvents]
▶ 3 Dividend Stocks I'd Buy Right Now   [Mar-17-18 07:17AM  Motley Fool]
▶ 4 Top Socially Responsible Stocks to Consider Now   [Mar-04-18 07:02AM  Motley Fool]
▶ Weyerhaeuser Company declares dividend on common shares   [Feb-08-18 08:57PM  PR Newswire]
▶ Weyerhaeuser misses 4Q profit forecasts   [05:02AM  Associated Press]
▶ How to Trade the Pullback in Timber Stocks   [Jan-30-18 07:40AM  Investopedia]
▶ Weyerhaueser Climbing Higher; Buy a Slight Dip   [Jan-25-18 09:55AM  TheStreet.com]
▶ [$$] Supreme Court to Take Up Case of Dusky Gopher Frog   [Jan-22-18 03:40PM  The Wall Street Journal]
▶ Weyerhaeuser to release fourth quarter results on Feb. 2   [Jan-04-18 04:30PM  PR Newswire]
▶ Weyerhaeuser among IQ100 leaders   [Nov-30-17 03:03PM  CNBC Videos]
▶ How to Invest in Lumber   [Nov-27-17 08:10AM  Motley Fool]
▶ Weyerhaeuser announces 3.2% dividend increase   [Nov-09-17 08:15PM  PR Newswire]
▶ Stocks Generating Improved Relative Strength: Weyerhaeuser   [Nov-08-17 03:00AM  Investor's Business Daily]
▶ Old growth beat out new tech in coolest new office contest (Photos)   [Nov-07-17 03:55PM  American City Business Journals]
▶ Redfin, Weyerhaeuser and others vie for coolest office award (Photos)   [09:12AM  American City Business Journals]
▶ Stocks Showing Improved Relative Strength: Weyerhaeuser   [03:00AM  Investor's Business Daily]
▶ Weyerhaeuser beats 3Q profit forecasts   [05:02AM  Associated Press]
Financial statements 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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