WCC Valuation

Wesco International Inc

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226.490

+2.01(0.895%)1D

Overview
Forecast
Valuation
Earnings

WCC Relative Valuation

WCC's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, WCC is overvalued; if below, it's undervalued.

Historical Valuation

Wesco International Inc (WCC) is now in the Fair zone, suggesting that its current forward PE ratio of 15.03 is considered Fairly compared with the five-year average of 10.60. The fair price of Wesco International Inc (WCC) is between 188.28 to 243.93 according to relative valuation methord.

Relative Value

Fair Zone

188.28-243.93

Current Price：224.48

Fair

15.10

Trailing

Forward

10.22

EV/EBITDA

Wesco International Inc. (WCC) has a current EV/EBITDA of 10.22. The 5-year average EV/EBITDA is 8.07. The thresholds are as follows: Strongly Undervalued below 6.10, Undervalued between 6.10 and 7.08, Fairly Valued between 9.05 and 7.08, Overvalued between 9.05 and 10.03, and Strongly Overvalued above 10.03. The current Forward EV/EBITDA of 10.22 falls within the Strongly Overvalued range.

12.05

EV/EBIT

Wesco International Inc. (WCC) has a current EV/EBIT of 12.05. The 5-year average EV/EBIT is 9.40. The thresholds are as follows: Strongly Undervalued below 6.72, Undervalued between 6.72 and 8.06, Fairly Valued between 10.74 and 8.06, Overvalued between 10.74 and 12.08, and Strongly Overvalued above 12.08. The current Forward EV/EBIT of 12.05 falls within the Overvalued range.

0.46

Wesco International Inc. (WCC) has a current PS of 0.46. The 5-year average PS is 0.32. The thresholds are as follows: Strongly Undervalued below 0.19, Undervalued between 0.19 and 0.26, Fairly Valued between 0.39 and 0.26, Overvalued between 0.39 and 0.46, and Strongly Overvalued above 0.46. The current Forward PS of 0.46 falls within the Overvalued range.

13.28

P/OCF

Wesco International Inc. (WCC) has a current P/OCF of 13.28. The 5-year average P/OCF is 25.64. The thresholds are as follows: Strongly Undervalued below -101.90, Undervalued between -101.90 and -38.13, Fairly Valued between 89.41 and -38.13, Overvalued between 89.41 and 153.18, and Strongly Overvalued above 153.18. The current Forward P/OCF of 13.28 falls within the Historic Trend Line -Fairly Valued range.

26.09

P/FCF

Wesco International Inc. (WCC) has a current P/FCF of 26.09. The 5-year average P/FCF is -41.01. The thresholds are as follows: Strongly Undervalued below -558.89, Undervalued between -558.89 and -299.95, Fairly Valued between 217.93 and -299.95, Overvalued between 217.93 and 476.87, and Strongly Overvalued above 476.87. The current Forward P/FCF of 26.09 falls within the Historic Trend Line -Fairly Valued range.

Wesco International Inc (WCC) has a current Price-to-Book (P/B) ratio of 2.28. Compared to its 3-year average P/B ratio of 1.69 , the current P/B ratio is approximately 34.98% higher. Relative to its 5-year average P/B ratio of 1.59, the current P/B ratio is about 43.88% higher. Wesco International Inc (WCC) has a Forward Free Cash Flow (FCF) yield of approximately 5.72%. Compared to its 3-year average FCF yield of 4.90%, the current FCF yield is approximately 16.81% lower. Relative to its 5-year average FCF yield of 5.41% , the current FCF yield is about 5.82% lower.

2.29

P/B

Median3y

1.69

Median5y

1.59

5.72

FCF Yield

Median3y

4.90

Median5y

5.41

Competitors Valuation Multiple

The average P/S ratio for WCC's competitors is 1.32, providing a benchmark for relative valuation. Wesco International Inc Corp (WCC) exhibits a P/S ratio of 0.46, which is -65.39% above the industry average. Given its robust revenue growth of 7.66%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

WCC.N

Wesco International Inc

Applied Industrial Technologies Inc

Performance Decomposition

Market capitalization of WCC increased by 37.61% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 10.97 to 17.59.

The secondary factor is the Revenue Growth, contributed 7.66%to the performance.

Overall, the performance of WCC in the past 1 year is driven by P/E Change. Which is more unsustainable.

7.66%

5.48B → 5.90B

Revenue Growth

-30.35%

4.25 → 2.96

Margin Expansion

60.30%

10.97 → 17.59

P/E Change

37.61%