Intrinsic value of WestRock - WRK

Previous Close

$55.95

  Intrinsic Value

$185.00

stock screener

  Rating & Target

str. buy

+231%

Previous close

$55.95

 
Intrinsic value

$185.00

 
Up/down potential

+231%

 
Rating

str. buy

We calculate the intrinsic value of WRK 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 0001), $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 14.3

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
   2
   3
   4
   5
   6
   7
   8
   9
   10
   11
   12
   13
   14
   15
   16
   17
   18
   19
   20
   21
   22
   23
   24
   25
   26
   27
   28
   29
   30
   31

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  12.00
  11.30
  10.67
  10.10
  9.59
  9.13
  8.72
  8.35
  8.01
  7.71
  7.44
  7.20
  6.98
  6.78
  6.60
  6.44
  6.30
  6.17
  6.05
  5.95
  5.85
  5.77
  5.69
  5.62
  5.56
  5.50
  5.45
  5.41
  5.37
  5.33
Revenue, $m
  16,643
  18,524
  20,500
  22,571
  24,736
  26,996
  29,350
  31,800
  34,348
  36,997
  39,750
  42,610
  45,583
  48,673
  51,887
  55,229
  58,706
  62,327
  66,098
  70,028
  74,126
  78,400
  82,860
  87,517
  92,382
  97,465
  102,779
  108,336
  114,150
  120,234
Variable operating expenses, $m
  6,751
  7,413
  8,110
  8,840
  9,603
  10,399
  11,228
  12,092
  12,990
  13,923
  14,007
  15,016
  16,063
  17,152
  18,284
  19,462
  20,688
  21,964
  23,293
  24,677
  26,121
  27,627
  29,199
  30,840
  32,555
  34,346
  36,219
  38,177
  40,226
  42,369
Fixed operating expenses, $m
  8,262
  8,444
  8,629
  8,819
  9,013
  9,212
  9,414
  9,621
  9,833
  10,049
  10,270
  10,496
  10,727
  10,963
  11,204
  11,451
  11,703
  11,960
  12,223
  12,492
  12,767
  13,048
  13,335
  13,628
  13,928
  14,235
  14,548
  14,868
  15,195
  15,529
Total operating expenses, $m
  15,013
  15,857
  16,739
  17,659
  18,616
  19,611
  20,642
  21,713
  22,823
  23,972
  24,277
  25,512
  26,790
  28,115
  29,488
  30,913
  32,391
  33,924
  35,516
  37,169
  38,888
  40,675
  42,534
  44,468
  46,483
  48,581
  50,767
  53,045
  55,421
  57,898
Operating income, $m
  1,630
  2,667
  3,761
  4,912
  6,120
  7,385
  8,707
  10,087
  11,525
  13,024
  15,472
  17,098
  18,793
  20,558
  22,398
  24,316
  26,316
  28,403
  30,582
  32,859
  35,237
  37,724
  40,326
  43,048
  45,899
  48,884
  52,013
  55,292
  58,729
  62,335
EBITDA, $m
  3,475
  4,620
  5,828
  7,098
  8,431
  9,826
  11,284
  12,805
  14,390
  16,042
  17,762
  19,553
  21,419
  23,362
  25,387
  27,497
  29,698
  31,994
  34,390
  36,893
  39,508
  42,241
  45,100
  48,090
  51,221
  54,500
  57,934
  61,533
  65,306
  69,262
Interest expense (income), $m
  239
  354
  450
  551
  657
  768
  884
  1,006
  1,132
  1,263
  1,400
  1,542
  1,690
  1,843
  2,003
  2,168
  2,341
  2,520
  2,706
  2,901
  3,103
  3,314
  3,533
  3,763
  4,002
  4,252
  4,513
  4,785
  5,070
  5,368
  5,680
Earnings before tax, $m
  1,276
  2,216
  3,210
  4,255
  5,352
  6,501
  7,702
  8,955
  10,262
  11,624
  13,930
  15,409
  16,950
  18,556
  20,229
  21,975
  23,796
  25,697
  27,682
  29,756
  31,924
  34,191
  36,563
  39,046
  41,647
  44,372
  47,227
  50,221
  53,361
  56,655
Tax expense, $m
  345
  598
  867
  1,149
  1,445
  1,755
  2,079
  2,418
  2,771
  3,139
  3,761
  4,160
  4,576
  5,010
  5,462
  5,933
  6,425
  6,938
  7,474
  8,034
  8,619
  9,232
  9,872
  10,543
  11,245
  11,980
  12,751
  13,560
  14,408
  15,297
Net income, $m
  932
  1,618
  2,343
  3,106
  3,907
  4,746
  5,622
  6,537
  7,491
  8,486
  10,169
  11,248
  12,373
  13,546
  14,767
  16,042
  17,371
  18,759
  20,208
  21,722
  23,304
  24,959
  26,691
  28,504
  30,402
  32,391
  34,476
  36,662
  38,954
  41,358

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $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
Total assets, $m
  28,113
  31,290
  34,628
  38,127
  41,784
  45,601
  49,577
  53,716
  58,020
  62,495
  67,145
  71,977
  76,999
  82,219
  87,646
  93,292
  99,166
  105,282
  111,653
  118,291
  125,212
  132,432
  139,966
  147,833
  156,050
  164,637
  173,613
  183,001
  192,821
  203,098
Adjusted assets (=assets-cash), $m
  28,113
  31,290
  34,628
  38,127
  41,784
  45,601
  49,577
  53,716
  58,020
  62,495
  67,145
  71,977
  76,999
  82,219
  87,646
  93,292
  99,166
  105,282
  111,653
  118,291
  125,212
  132,432
  139,966
  147,833
  156,050
  164,637
  173,613
  183,001
  192,821
  203,098
Revenue / Adjusted assets
  0.592
  0.592
  0.592
  0.592
  0.592
  0.592
  0.592
  0.592
  0.592
  0.592
  0.592
  0.592
  0.592
  0.592
  0.592
  0.592
  0.592
  0.592
  0.592
  0.592
  0.592
  0.592
  0.592
  0.592
  0.592
  0.592
  0.592
  0.592
  0.592
  0.592
Average production assets, $m
  14,862
  16,541
  18,306
  20,156
  22,089
  24,107
  26,209
  28,397
  30,673
  33,038
  35,496
  38,051
  40,706
  43,465
  46,335
  49,319
  52,425
  55,658
  59,026
  62,535
  66,194
  70,011
  73,994
  78,153
  82,497
  87,036
  91,782
  96,744
  101,936
  107,369
Working capital, $m
  1,997
  2,223
  2,460
  2,709
  2,968
  3,239
  3,522
  3,816
  4,122
  4,440
  4,770
  5,113
  5,470
  5,841
  6,226
  6,627
  7,045
  7,479
  7,932
  8,403
  8,895
  9,408
  9,943
  10,502
  11,086
  11,696
  12,333
  13,000
  13,698
  14,428
Total debt, $m
  8,339
  10,207
  12,170
  14,227
  16,377
  18,621
  20,960
  23,393
  25,924
  28,555
  31,289
  34,131
  37,083
  40,153
  43,344
  46,664
  50,118
  53,714
  57,460
  61,363
  65,433
  69,678
  74,109
  78,734
  83,566
  88,615
  93,893
  99,413
  105,187
  111,230
Total liabilities, $m
  16,530
  18,398
  20,361
  22,419
  24,569
  26,813
  29,151
  31,585
  34,116
  36,747
  39,481
  42,322
  45,275
  48,345
  51,536
  54,855
  58,310
  61,906
  65,652
  69,555
  73,625
  77,870
  82,300
  86,926
  91,757
  96,806
  102,085
  107,604
  113,379
  119,422
Total equity, $m
  11,583
  12,891
  14,267
  15,708
  17,215
  18,787
  20,426
  22,131
  23,904
  25,748
  27,664
  29,654
  31,723
  33,874
  36,110
  38,436
  40,857
  43,376
  46,001
  48,736
  51,587
  54,562
  57,666
  60,907
  64,293
  67,830
  71,529
  75,396
  79,442
  83,676
Total liabilities and equity, $m
  28,113
  31,289
  34,628
  38,127
  41,784
  45,600
  49,577
  53,716
  58,020
  62,495
  67,145
  71,976
  76,998
  82,219
  87,646
  93,291
  99,167
  105,282
  111,653
  118,291
  125,212
  132,432
  139,966
  147,833
  156,050
  164,636
  173,614
  183,000
  192,821
  203,098
Debt-to-equity ratio
  0.720
  0.790
  0.850
  0.910
  0.950
  0.990
  1.030
  1.060
  1.080
  1.110
  1.130
  1.150
  1.170
  1.190
  1.200
  1.210
  1.230
  1.240
  1.250
  1.260
  1.270
  1.280
  1.290
  1.290
  1.300
  1.310
  1.310
  1.320
  1.320
  1.330
Adjusted equity ratio
  0.412
  0.412
  0.412
  0.412
  0.412
  0.412
  0.412
  0.412
  0.412
  0.412
  0.412
  0.412
  0.412
  0.412
  0.412
  0.412
  0.412
  0.412
  0.412
  0.412
  0.412
  0.412
  0.412
  0.412
  0.412
  0.412
  0.412
  0.412
  0.412
  0.412

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  932
  1,618
  2,343
  3,106
  3,907
  4,746
  5,622
  6,537
  7,491
  8,486
  10,169
  11,248
  12,373
  13,546
  14,767
  16,042
  17,371
  18,759
  20,208
  21,722
  23,304
  24,959
  26,691
  28,504
  30,402
  32,391
  34,476
  36,662
  38,954
  41,358
Depreciation, amort., depletion, $m
  1,845
  1,953
  2,067
  2,186
  2,311
  2,441
  2,577
  2,718
  2,865
  3,017
  2,290
  2,455
  2,626
  2,804
  2,989
  3,182
  3,382
  3,591
  3,808
  4,035
  4,271
  4,517
  4,774
  5,042
  5,322
  5,615
  5,921
  6,242
  6,577
  6,927
Funds from operations, $m
  2,776
  3,571
  4,410
  5,292
  6,218
  7,187
  8,199
  9,255
  10,356
  11,503
  12,459
  13,703
  14,999
  16,350
  17,757
  19,224
  20,753
  22,350
  24,016
  25,756
  27,575
  29,476
  31,465
  33,546
  35,725
  38,007
  40,397
  42,903
  45,530
  48,285
Change in working capital, $m
  214
  226
  237
  249
  260
  271
  282
  294
  306
  318
  330
  343
  357
  371
  386
  401
  417
  434
  453
  472
  492
  513
  535
  559
  584
  610
  638
  667
  698
  730
Cash from operations, $m
  2,562
  3,345
  4,173
  5,044
  5,958
  6,916
  7,916
  8,961
  10,050
  11,185
  12,129
  13,360
  14,643
  15,979
  17,371
  18,823
  20,336
  21,915
  23,563
  25,285
  27,083
  28,963
  30,930
  32,987
  35,141
  37,397
  39,760
  42,236
  44,833
  47,555
Maintenance CAPEX, $m
  -856
  -959
  -1,067
  -1,181
  -1,300
  -1,425
  -1,555
  -1,691
  -1,832
  -1,979
  -2,131
  -2,290
  -2,455
  -2,626
  -2,804
  -2,989
  -3,182
  -3,382
  -3,591
  -3,808
  -4,035
  -4,271
  -4,517
  -4,774
  -5,042
  -5,322
  -5,615
  -5,921
  -6,242
  -6,577
New CAPEX, $m
  -1,597
  -1,679
  -1,765
  -1,850
  -1,934
  -2,018
  -2,102
  -2,188
  -2,276
  -2,365
  -2,458
  -2,555
  -2,655
  -2,760
  -2,869
  -2,985
  -3,106
  -3,233
  -3,368
  -3,509
  -3,659
  -3,817
  -3,983
  -4,159
  -4,344
  -4,539
  -4,745
  -4,963
  -5,192
  -5,433
Cash from investing activities, $m
  -2,453
  -2,638
  -2,832
  -3,031
  -3,234
  -3,443
  -3,657
  -3,879
  -4,108
  -4,344
  -4,589
  -4,845
  -5,110
  -5,386
  -5,673
  -5,974
  -6,288
  -6,615
  -6,959
  -7,317
  -7,694
  -8,088
  -8,500
  -8,933
  -9,386
  -9,861
  -10,360
  -10,884
  -11,434
  -12,010
Free cash flow, $m
  110
  707
  1,341
  2,013
  2,724
  3,473
  4,259
  5,082
  5,943
  6,841
  7,539
  8,515
  9,533
  10,593
  11,698
  12,849
  14,048
  15,300
  16,605
  17,967
  19,390
  20,876
  22,430
  24,055
  25,755
  27,535
  29,399
  31,352
  33,399
  35,546
Issuance/(repayment) of debt, $m
  1,784
  1,868
  1,963
  2,057
  2,151
  2,244
  2,338
  2,434
  2,531
  2,631
  2,734
  2,841
  2,953
  3,069
  3,191
  3,320
  3,454
  3,596
  3,746
  3,903
  4,070
  4,245
  4,430
  4,626
  4,832
  5,049
  5,278
  5,520
  5,774
  6,043
Issuance/(repurchase) of shares, $m
  308
  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  
  2,092
  1,868
  1,963
  2,057
  2,151
  2,244
  2,338
  2,434
  2,531
  2,631
  2,734
  2,841
  2,953
  3,069
  3,191
  3,320
  3,454
  3,596
  3,746
  3,903
  4,070
  4,245
  4,430
  4,626
  4,832
  5,049
  5,278
  5,520
  5,774
  6,043
Total cash flow (excl. dividends), $m
  2,202
  2,575
  3,304
  4,070
  4,875
  5,717
  6,597
  7,516
  8,473
  9,472
  10,273
  11,357
  12,486
  13,663
  14,889
  16,168
  17,503
  18,896
  20,350
  21,870
  23,459
  25,121
  26,860
  28,680
  30,587
  32,584
  34,677
  36,872
  39,174
  41,588
Retained Cash Flow (-), $m
  -1,240
  -1,309
  -1,376
  -1,441
  -1,507
  -1,572
  -1,638
  -1,705
  -1,773
  -1,843
  -1,916
  -1,991
  -2,069
  -2,151
  -2,236
  -2,326
  -2,420
  -2,520
  -2,625
  -2,735
  -2,852
  -2,974
  -3,104
  -3,241
  -3,385
  -3,538
  -3,698
  -3,868
  -4,046
  -4,234
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
  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
  962
  1,266
  1,928
  2,629
  3,368
  4,145
  4,959
  5,810
  6,700
  7,628
  8,357
  9,366
  10,417
  11,512
  12,653
  13,842
  15,082
  16,376
  17,726
  19,135
  20,608
  22,147
  23,756
  25,439
  27,201
  29,046
  30,979
  33,004
  35,128
  37,354
Discount rate, %
  6.00
  6.30
  6.62
  6.95
  7.29
  7.66
  8.04
  8.44
  8.86
  9.31
  9.77
  10.26
  10.78
  11.31
  11.88
  12.47
  13.10
  13.75
  14.44
  15.16
  15.92
  16.72
  17.55
  18.43
  19.35
  20.32
  21.33
  22.40
  23.52
  24.70
PV of cash for distribution, $m
  907
  1,120
  1,591
  2,010
  2,369
  2,662
  2,886
  3,038
  3,120
  3,133
  2,996
  2,900
  2,754
  2,567
  2,349
  2,111
  1,861
  1,610
  1,367
  1,137
  926
  739
  576
  439
  327
  237
  167
  115
  77
  50
Current shareholders' claim on cash, %
  97.9
  97.9
  97.9
  97.9
  97.9
  97.9
  97.9
  97.9
  97.9
  97.9
  97.9
  97.9
  97.9
  97.9
  97.9
  97.9
  97.9
  97.9
  97.9
  97.9
  97.9
  97.9
  97.9
  97.9
  97.9
  97.9
  97.9
  97.9
  97.9
  97.9

WestRock Company, incorporated on March 6, 2015, is a multinational provider of paper and packaging solutions for consumer and corrugated packaging markets. The Company also develops real estate in the Charleston, South Carolina region. The Company's segments include Corrugated Packaging, Consumer Packaging, and Land and Development. The Corrugated Packaging segment consists of its containerboard mill and corrugated packaging operations, as well as its recycling operations. The Consumer Packaging segment consists of consumer mills, folding carton, beverage, merchandising displays, and partition operations. The Land and Development segment is engaged in the development and sale of real estate primarily in Charleston, South Carolina.

FINANCIAL RATIOS  of  WestRock (WRK)

Valuation Ratios
P/E Ratio 20.1
Price to Sales 1
Price to Book 1.4
Price to Tangible Book
Price to Cash Flow 7.5
Price to Free Cash Flow 12.7
Growth Rates
Sales Growth Rate 4.9%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -2.3%
Cap. Spend. - 3 Yr. Gr. Rate 7.8%
Financial Strength
Quick Ratio 0
Current Ratio 0.2
LT Debt to Equity 57.5%
Total Debt to Equity 63.4%
Interest Coverage 5
Management Effectiveness
Return On Assets 3.8%
Ret/ On Assets - 3 Yr. Avg. 2%
Return On Total Capital 4.4%
Ret/ On T. Cap. - 3 Yr. Avg. 2%
Return On Equity 7.1%
Return On Equity - 3 Yr. Avg. 3.2%
Asset Turnover 0.6
Profitability Ratios
Gross Margin 18.4%
Gross Margin - 3 Yr. Avg. 19%
EBITDA Margin 14.9%
EBITDA Margin - 3 Yr. Avg. 13.6%
Operating Margin 5.6%
Oper. Margin - 3 Yr. Avg. 5.4%
Pre-Tax Margin 5.8%
Pre-Tax Margin - 3 Yr. Avg. 4.7%
Net Profit Margin 4.8%
Net Profit Margin - 3 Yr. Avg. 2.2%
Effective Tax Rate 18.5%
Eff/ Tax Rate - 3 Yr. Avg. 29%
Payout Ratio 56.9%

WRK stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the WRK stock intrinsic value calculation we used $14859.7 million for the last fiscal year's total revenue generated by WestRock. The default revenue input number comes from 0001 income statement of WestRock. 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 WRK stock valuation model: a) initial revenue growth rate of 12% 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%, whose default value for WRK is calculated based on our internal credit rating of WestRock, 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 WestRock.
    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 WRK stock the variable cost ratio is equal to 41.2%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $8084 million in the base year in the intrinsic value calculation for WRK 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 5.4% for WestRock.

Corporate tax rate of 27% is the nominal tax rate for WestRock. 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 WRK 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 WRK are equal to 89.3%.

Life of production assets of 15.5 years is the average useful life of capital assets used in WestRock 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 WRK is equal to 12%. 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 - $10342.5 million for WestRock - 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 255.112 million for WestRock 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 WestRock at the current share price and the inputted number of shares is $14.3 billion.

RELATED COMPANIES Price Int.Val. Rating
GPK Graphic Packag 14.31 36.85  str.buy
IP International 53.62 32.09  sell
PKG Packaging of A 115.36 119.71  hold

COMPANY NEWS

▶ WestRock Provides Update Following Hurricane Florence   [Sep-18-18 08:55AM  GlobeNewswire]
▶ IBD Stock Of The Day: Ford F-150 Helps Drive This Stock To New Heights   [Sep-05-18 04:12PM  Investor's Business Daily]
▶ WestRock seeks to collect judgment from governor's companies   [Aug-31-18 12:13PM  Associated Press]
▶ 3 Dividend Stocks for In-the-Know Investors   [Aug-20-18 03:54PM  Motley Fool]
▶ Manufacturer to close Charlotte facility, laying off 170 employees   [08:40AM  American City Business Journals]
▶ WestRock to Acquire Schl├╝ter Print Pharma Packaging   [Aug-08-18 05:47PM  GlobeNewswire]
▶ Here's My Top Stock to Buy in August   [08:19AM  Motley Fool]
▶ Bank deal will lead to new name for Chastain Park Amphitheatre   [Aug-03-18 05:30AM  American City Business Journals]
▶ WestRock: Fiscal 3Q Earnings Snapshot   [06:52AM  Associated Press]
▶ WestRock Announces Quarterly Dividend of $0.43 Per Share   [Jul-27-18 09:25AM  GlobeNewswire]
▶ Is WestRock a Smart Play on the Growth of E-Commerce?   [Jul-03-18 05:13PM  Motley Fool]
▶ Are WestRock Companys (NYSE:WRK) Interest Costs Too High?   [May-18-18 03:23PM  Simply Wall St.]
▶ Top Cheap Stocks To Buy Now   [10:02AM  Simply Wall St.]
▶ Cheap Dividend Paying Companies To Buy   [May-14-18 04:05PM  Simply Wall St.]
▶ WestRock Co. to Host Earnings Call   [06:45AM  ACCESSWIRE]
▶ WestRock: Fiscal 2Q Earnings Snapshot   [06:43AM  Associated Press]
▶ WestRock Announces Quarterly Dividend of $0.43 Per Share   [Apr-20-18 09:02AM  GlobeNewswire]
▶ Why WestRock (WRK) Stock Might be a Great Pick   [Apr-18-18 08:50AM  Zacks]
▶ Packaging a Trading Strategy on WestRock Stock   [Mar-20-18 09:13AM  TheStreet.com]
▶ WestRock Prices $1.2 Billion of Senior Notes   [Mar-01-18 05:10PM  GlobeNewswire]
▶ WestRock Chairman John Luke Named 2018 Outstanding Director   [Feb-22-18 05:49PM  GlobeNewswire]
▶ Why You Should Buy Into The Sell-Off   [Feb-06-18 01:30PM  Investopedia]
▶ Don't panic, find the sell-off's opportunities   [Feb-05-18 07:09PM  CNBC Videos]
▶ WestRock Announces Quarterly Dividend of $0.43 Per Share   [Feb-02-18 11:24AM  GlobeNewswire]
▶ WestRock Co. to Host Earnings Call   [06:45AM  ACCESSWIRE]
▶ What Happened in the Stock Market Today   [04:55PM  Motley Fool]
▶ WestRock beats 1Q profit forecasts   [06:41AM  Associated Press]

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