Is WY Stock Undervalued?

A comprehensive valuation analysis of Weyerhaeuser Co (WY) examining current multiples, intrinsic value, and comparing to analyst expectations.

8 min readView Full Analysis

Valuation Verdict

Potentially Undervalued

19818906386.3% upside potential

Based on our analysis, Weyerhaeuser Co appears to be potentially undervalued at the current price of $24.53. Our fair value estimate of $4861577761.08 suggests upside potential of approximately 19818906386.3%.

Current Valuation Metrics

Valuation ratios help us understand how the market is pricing WY relative to its fundamentals. Let's examine the key multiples investors are paying today.

P/E Ratio
54.49
High
P/B Ratio
1.89
Moderate
P/S Ratio
2.56
Moderate
EV/EBITDA
21.45
High

Understanding the Metrics

  • P/E Ratio: At 54.49x earnings, WY is trading above the typical market average of 15-20x.
  • P/B Ratio: A P/B of 1.89 means investors pay $1.89 for every $1 of book value.
  • P/S Ratio: The price-to-sales ratio of 2.56 indicates how much investors value each dollar of revenue.
  • EV/EBITDA: This ratio of 21.45 helps compare WY to peers while accounting for debt.

Fair Value Estimate

Using a discounted cash flow (DCF) model, we estimate the intrinsic value of Weyerhaeuser Co stock. This fundamental analysis looks at the company's ability to generate future cash flows and discounts them back to today's value.

Current Price
$24.53
vs
Fair Value Estimate
$4861577761.08
Implied Return+19818906386.3%

Our DCF model suggests WY may be undervalued by approximately 19818906386.3%. This implies the market may be pricing in more pessimistic growth expectations than our base case scenario.

Analyst Price Targets

Wall Street analysts provide price targets based on their fundamental research and models. Let's see how the consensus view compares to the current price.

Current Price
$24.53
Analyst Target
$31.64
Implied Upside29.0%

The consensus analyst price target of $31.64 suggests 29.0% upside potential from current levels. Analysts appear optimistic about the stock's prospects.

Investment Conclusion

Bottom Line

Based on our comprehensive valuation analysis, Weyerhaeuser Co (WY) appears to be undervalued at $24.53. With a fair value estimate of $4861577761.08, the stock offers potential upside for long-term investors willing to wait for the market to recognize its intrinsic value.

Disclaimer: This analysis is for informational purposes only and should not be considered investment advice. Always conduct your own research and consult with a financial advisor before making investment decisions. Past performance does not guarantee future results.

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