WillScot Holdings Corporation (WSC) Intrinsic Value

DCF-based fair value calculation with Bear, Base, and Bull scenarios

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WillScot Holdings Corporation (WSC)

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Intrinsic Value (DCF)

Current$22.42
Intrinsic$16.00
-29%
$4.27$16.00$38.26
Market implies 22% growth for 5 years
WSC trades at a premium to our conservative estimate — investors expect above-average performance.
At $22, the market prices in continued strong cash flow growth (22%) — likely reflecting buybacks, margin stability, and ecosystem strength.
Range: Bear $4 → Bull $38. Current price implies expectations above the base case, closer to bull expectations.
Discount ↓Growth →14%16%18%20%
8%$24$28$32$36
10%$11$13$16$19
12%$3$5$7$10
14%$0$0$2$4

Bull Case

  • Bull case ($38) offers 71% upside at 21% growth, 9% discount

Bear Case

  • Bear case ($4) implies 81% downside at 14% growth, 12% discount
  • Price reflects 22% growth expectations vs 18% historical — high bar to clear
  • Trading 29% above base case — execution must exceed assumptions to justify
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5-Year Free Cash Flow Projection

Year 1$308.61M
Year 2$363.03M
Year 3$427.03M
Year 4$502.33M
Year 5$590.90M
Terminal$8.69B

📐 Model Inputs

Growth Rate17.6%5Y CAGR (cascade: 5Y→3Y→TTM)
Discount Rate10.0%WACC estimate
Terminal Growth3.0%Perpetuity rate
Base Free Cash Flow$262.35MTTM actual
Bear g×0.8, r+2%
Base Historical CAGR
Bull g×1.2, r−1.5%
ℹ️

DCF estimates based on historical growth rates extrapolated forward. See FAQ below for full methodology.

Frequently Asked Questions

Is WSC stock undervalued or overvalued?
🔴 OVERVALUED

WSC trades at $22.42 vs. our DCF-derived intrinsic value of $16.00, implying -26% downside. Using a 10.0% WACC and 17.6% FCF growth assumption, the current price requires growth rates above our estimates to be justified. Even our bull case ($33.70) suggests limited upside.

What is WSC's intrinsic value?

Using a 5-year DCF model: Base FCF of $262M, projected at 17.6% 5Y CAGR (best of revenue, EPS, or FCF growth), discounted at 10.0% WACC, with 3.0% terminal growth. Terminal value calculated via Gordon Growth Model: TV = FCF₅ × (1+g) / (WACC−g). After deducting $3.97B net debt and dividing by 0.19B shares: Bear $3.77 | Base $16.00 | Bull $33.70. Current price $22.42 implies -26% to base case.

How is WSC's fair value calculated?

DCF Methodology:

① Project FCF years 1-5 using 17.6% growth derived from 5-year historical CAGR (best of revenue, EPS, or FCF growth, with 8% floor and 25% cap).

② Calculate terminal value at year 5 using perpetuity growth model with g=3.0%.

③ Discount all cash flows to PV using WACC=10.0%.

④ Sum PV of explicit period + PV of terminal value = Enterprise Value ($7.01B).

⑤ Subtract net debt, divide by shares outstanding.

Sensitivity analysis available above—adjust WACC ±2% or growth ±3% to stress-test the valuation. Implied EV/FCF multiple: 26.7x.