WY · NYQ · Real Estate
Weyerhaeuser Company
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Implied value per share
USD 12.80
Market price
USD 21.29
Implied upside
-39.9%
10-year forecast · Perpetuity growth terminal value · Mid-year discounting · Base case · Price 2026-11-02 · Accounts to 2025-12-31
Current EV/EBITDA of 21.4x sits outside a defensible 3-20x band, so the exit multiple is capped at 20.0x. A multiple that far out usually means EBITDA is the wrong denominator for this business.
Value Per Share
Same forecast, different terminal treatment. Percentages vs price.
Forecast Cashflows
Reporting currency (USD). Outflows negative.
| Line | FY26 | FY27 | FY28 | FY29 | FY30 | FY31 | FY32 | FY33 | FY34 | FY35 | CAGR |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | USD 7.2bn | USD 7.6bn | USD 8.0bn | USD 8.4bn | USD 8.8bn | USD 9.1bn | USD 9.5bn | USD 9.8bn | USD 10.1bn | USD 10.3bn | +4.1% |
| EBIT | USD 1.1bn | USD 1.2bn | USD 1.2bn | USD 1.3bn | USD 1.4bn | USD 1.4bn | USD 1.5bn | USD 1.5bn | USD 1.6bn | USD 1.6bn | +4.1% |
| NOPAT | USD 995.7m | USD 1.1bn | USD 1.1bn | USD 1.2bn | USD 1.2bn | USD 1.3bn | USD 1.3bn | USD 1.4bn | USD 1.4bn | USD 1.4bn | +4.1% |
| Add depreciation & amortisation | USD 461.7m | USD 487.8m | USD 513.5m | USD 538.5m | USD 562.6m | USD 585.5m | USD 607.1m | USD 627.1m | USD 645.2m | USD 661.4m | +4.1% |
| Less capital expenditure | USD -656.7m | USD -706.4m | USD -756.9m | USD -807.6m | USD -858.3m | USD -908.4m | USD -957.6m | USD -1.0bn | USD -1.1bn | USD -1.1bn | +5.8% |
| Capex, % of revenue | 9.1% | 9.3% | 9.5% | 9.6% | 9.8% | 9.9% | 10.1% | 10.3% | 10.4% | 10.6% | - |
| Less increase in working capital | USD -25.5m | USD -35.0m | USD -34.4m | USD -33.5m | USD -32.3m | USD -30.8m | USD -28.9m | USD -26.8m | USD -24.3m | USD -21.6m | -1.8% |
| Free cashflow to firm | USD 775.2m | USD 798.4m | USD 829.6m | USD 858.6m | USD 885.2m | USD 909.0m | USD 929.8m | USD 947.3m | USD 961.2m | USD 971.5m | +2.5% |
| Discount factor | 0.9612 | 0.8881 | 0.8205 | 0.7581 | 0.7005 | 0.6472 | 0.5979 | 0.5525 | 0.5104 | 0.4716 | - |
| Present value | USD 745.2m | USD 709.0m | USD 680.7m | USD 650.9m | USD 620.0m | USD 588.3m | USD 556.0m | USD 523.3m | USD 490.6m | USD 458.2m | - |
| Present Value Of The Forecast | USD 6.0bn | ||||||||||
Discount Rate
Source shown per component. All overridable above.
| Risk-free rate | 4.89% | US 10-year Treasury (^TNX), 2026-11-02 |
| Equity risk premium | 4.23% | Damodaran, January 2026 |
| Beta | 0.967 | Reported 0.951, pulled toward 1.0 (Blume) |
| Cost of equity | 8.99% | Risk-free + beta x equity risk premium |
| Cost of debt | 6.89% | Risk-free + 200bp, the spread for a B rating at 1.6x interest cover, capped at 200bp because one year's cover is too noisy to charge more. Book interest / average debt was lower, at 5.1%. |
| Market capitalisation | USD 15.3bn | 73.3% of capital |
| Total debt | USD 5.6bn | 26.7% of capital, book value as a proxy |
| Tax rate | 10.5% | Effective, capped at statutory |
| WACC | 8.23% | E/V x Re + D/V x Rd x (1 - t) |
Terminal Value
Perpetuity growth is intrinsic. The exit multiple defaults to the company's current EV/EBITDA, so it answers a different question - what the shares are worth if today's rating holds and EBITDA grows as forecast.
Perpetuity growth at 2.50%
58% of EV
- Forecast FCFF, final year
- USD 971.5m
- Capex at depreciation, working capital in reinvestment
- USD 1.4bn
- Less reinvestment at g/ROIC (30.4% of NOPAT)
- USD -433.1m
- Capitalised
- USD 993.1m
- ROIC (WACC floor)
- 8.2%
- Terminal value, undiscounted
- USD 17.8bn
- Terminal value, discounted
- USD 8.4bn
- Enterprise value
- USD 14.4bn
- Less net debt
- USD 5.1bn
- Equity value
- USD 9.3bn
Exit at 20.0x EBITDA
78% of EV
- Terminal value, undiscounted
- USD 45.1bn
- Terminal value, discounted
- USD 21.3bn
- Enterprise value
- USD 27.3bn
- Less net debt
- USD 5.1bn
- Equity value
- USD 22.2bn
Spread between methods: 82%.
Sensitivity
Value per share (USD) by discount rate and long-run growth.
| Long-run growth | |||||
|---|---|---|---|---|---|
| Discount rate | 1.50% | 2.00% | 2.50% | 3.00% | 3.50% |
| 6.23% | 20.43 | 20.04 | 19.65 | 19.25 | 18.86 |
| 7.23% | 16.38 | 16.06 | 15.74 | 15.42 | 15.10 |
| 8.23% | 13.33 | 13.07 | 12.80 | 12.54 | 12.27 |
| 9.23% | 10.96 | 10.73 | 10.51 | 10.29 | 10.06 |
| 10.23% | 9.06 | 8.87 | 8.67 | 8.48 | 8.29 |
Outlined: this model. Green text: above today's price of 21.29. Shading: distance from this model's own value.
Priced In
What each input would have to be to justify the current price, one at a time.
| Input | Actual | Model | Implied | Gap |
|---|---|---|---|---|
| Revenue growth, a year | -12.1% | 4.1% | 8.5% | |
| EBIT margin | 30.4% | 15.4% | 21.6% | |
| Discount rate | - | 8.2% | 5.9% |
Live formulas, not pasted numbers - edit a driver and the workbook reprices.
Yahoo Finance and RBA data. General information, not advice. Methodology.