Worthington Enterprises (Worthington Enterprises) Intrinsic Value: DCF (Dividends Based) : $95.68 (As of Apr. 27, 2024)

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What is Worthington Enterprises Intrinsic Value: DCF (Dividends Based)?

As of today (2024-04-27), Worthington Enterprises's intrinsic value calculated from the Discounted Dividend model is $95.68.

Note: Discounted Dividend model is only suitable for companies who have a consistant distribution history. If the company's dividends does not remain steady over a long period, results may not be accurate due to the low consistency. The model is also only suitable for predictable companies (Business Predictability Rank higher than 1-Star) with dividend payments. If the company's Predictability Rank is 1-Star or Not Rated, or if the company does not pay dividend, the data will not be stored into our database.

Worthington Enterprises's Predictability Rank is 3-Stars.

Margin of Safety % (DCF Dividends Based) using Discounted Dividend Model for Worthington Enterprises is 38.95%.

The historical rank and industry rank for Worthington Enterprises's Intrinsic Value: DCF (Dividends Based) or its related term are showing as below:

WOR' s Price-to-DCF (Dividends Based) Range Over the Past 10 Years
Min: 0.09 Med: 0.3 Max: 0.65
Current: 0.61

During the past 13 years, the highest Price-to-Intrinsic-Value-DCF (Dividends Based) Ratio of Worthington Enterprises was 0.65. The lowest was 0.09. And the median was 0.30.

WOR's Price-to-DCF (Dividends Based) is ranked better than
75.74% of 408 companies
in the Industrial Products industry
Industry Median: 1.115 vs WOR: 0.61

Worthington Enterprises Intrinsic Value: DCF (Dividends Based) Historical Data

The historical data trend for Worthington Enterprises's Intrinsic Value: DCF (Dividends Based) can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Worthington Enterprises Intrinsic Value: DCF (Dividends Based) Chart

Worthington Enterprises Annual Data

Trend

May14

May15

May16

May17

May18

May19

May20

May21

May22

May23

Intrinsic Value: DCF (Dividends Based)

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62.59

285.55

129.89

83.25

Worthington Enterprises Quarterly Data
	May19	Aug19	Nov19	Feb20	May20	Aug20	Nov20	Feb21	May21	Aug21	Nov21	Feb22	May22	Aug22	Nov22	Feb23	May23	Aug23	Nov23	Feb24
Intrinsic Value: DCF (Dividends Based)	Get a 7-Day Free Trial															64.72	83.25	87.96	93.55	95.68

Competitive Comparison of Worthington Enterprises's Intrinsic Value: DCF (Dividends Based)

For the Metal Fabrication subindustry, Worthington Enterprises's Price-to-DCF (Dividends Based), along with its competitors' market caps and Price-to-DCF (Dividends Based) data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Worthington Enterprises's Price-to-DCF (Dividends Based) Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Worthington Enterprises's Price-to-DCF (Dividends Based) distribution charts can be found below:

* The bar in red indicates where Worthington Enterprises's Price-to-DCF (Dividends Based) falls into.

Worthington Enterprises Intrinsic Value: DCF (Dividends Based) Calculation

This is the intrinsic value calculated from the Discounted Dividend Model with default parameters. The calculation method is the same as Discounted Cash Flow model except adjusted dividend are used in the calculation instead of free cash flow. This is the default method of calculation with GuruFocus DCF calculator.

Usually a two-stage model is used in calculating the intrinsic value with discounted cash flow model. The first stage is called growth stage; the second is called the terminal stage. In the growth stage the company grows at a faster rate. Because it cannot grow at that rate forever, a lower rate is used for the terminal stage.

GuruFocus DDM calculator is a two-stage model. The default values are defined as:

1. Discount Rate: d = 11%
A reasonable discount rate assumption should be at least the long term average return of the stock market, which can be estimated from risk free rate plus risk premium of stock market. GuruFocus uses 10-Year Treasury Constant Maturity Rate as the risk-free rate and rounded up to the nearest integer. It is updated daily. The current risk-free rate is 4.66%. Please go to Economic Indicators page for more information. Please note that we use the 10-Year Treasury Constant Maturity Rate of the country/region where the company is headquartered. If the data for that country/region is not available, then we will use the 10-Year Treasury Constant Maturity Rate of the United States as default. Then we added a risk premium of 6% to get the estimated discount rate. Some investors use their expected rate of return, which is also reasonable. A typical discount rate can be anywhere between 6% - 20%.

2. Dividend Growth Rate in the growth stage: g1 = 10.60%
The Growth Rate in the growth stage is initially set as the default 10-Year Dividend Growth Rate. In cases where the 10-year growth rate is unavailable, it defaults to using the 5-Year Dividend Growth Rate. If both the 10-year and 5-year growth rates are unavailable, the system defaults to the 3-Year Dividend Growth Rate.
However, it's important to note that there is a growth rate range. If the calculated growth rate exceeds 20%, it will be capped at 20%. Conversely, if the calculated growth rate falls below 5%, it will be adjusted to 5% to maintain a reasonable range.
=> Worthington Enterprises's average Dividend Growth Rate in the past 10 years was 10.60%, which is between 5% and 20%. => GuruFocus defaults => Growth Rate: 10.60%

3. Years of Growth Stage: y1 = 10

4. Terminal Growth Rate: g2 = 4%

5. Dividends per Share: adjusted dividends per share = $5.742.
GuruFocus uses adjusted dividends per share by default to ensure that the valuation reflects the total value of the company, as the actual dividend is only a portion of the total value.

All of the default settings can be changed in the DCF calculator and the results are calculated automatically.

Worthington Enterprises's Intrinsic Value: DCF (Dividends Based) for today is calculated as:

Intrinsic Value: DCF (Dividends Based)	=	Dividends per Share	*	{[(1+g1)/(1+d)	+	(1+g1)^2/(1+d)^2	+	...	+	(1+g1)^10/(1+d)^10]
	+	(1+g1)^10/(1+d)^10	*	[(1+g2)/(1+d)	+	(1+g2)^2/(1+d)^2	+	...	+	(1+g2)^10/(1+d)^10]}

set x = (1+g1)/(1+d) = (1+0.106)/(1+0.11) = 0.9963963963964
and y = (1+g2)/(1+d) = (1+0.04)/(1+0.11) = 0.93693693693694

Intrinsic Value: DCF (Dividends Based)

Dividends per Share

{[x

x^2

...

x^10]

x^10

y^2

...

y^10]}

Dividends per Share

(1-x^10)

(1-x)

x^10

(1-y^10)

(1-y)]

5.742

16.6636

95.68

Margin of Safety % (DCF Dividends Based)	=	(Intrinsic Value: DCF (Dividends Based)	-	Current Price)	/	Intrinsic Value: DCF (Dividends Based)
	=	(95.68	-	58.41)	/	95.68
	=	38.95 %

Worthington Enterprises (NYSE:WOR) Intrinsic Value: DCF (Dividends Based) Explanation

Unlike valuation methods such as Net Current Asset Value, Tangible Book per Share, Graham Number, Median PS Value etc, discounted Dividends model evaluates the companies based on their power of future dividend distribution instead of their assets.

Be Aware

What you need to know about Discounted Dividends model:

1. The Discounted Dividends model evaluates a company based on its future dividends distribution power
2. Dividend growth is taken into account; therefore a company with a higher dividend growth rate is worth more if everything else is the same.
3. Since we are projecting future growth, it is assumed that the company will grow at the same rate as it did during the past 10 years. Therefore this model works better for the companies with consistently steady dividends distributed.
4. The Discounted Dividends model works poorly for inconsistent dividends distributor like high growth companies.
5. Your expected return from the investment is a reasonable discount rate assumption.
6. A larger margin of safety should be required for companies with less dividends distributed.

You can screen for stocks that trade below their Intrinsic Value: DCF (FCF Based) and Intrinsic Value: DCF (Earnings Based) and Intrinsic Value: DCF (Dividends Based) with the GuruFocus All-in-One Screener. Companies with a high Predictability Rank that trade at a discount to their Intrinsic Value: DCF (FCF Based) and Intrinsic Value: DCF (Earnings Based) can be found in the screen of Undervalued Predictable Companies.

Worthington Enterprises Intrinsic Value: DCF (Dividends Based) Related Terms

Thank you for viewing the detailed overview of Worthington Enterprises's Intrinsic Value: DCF (Dividends Based) provided by GuruFocus.com. Please click on the following links to see related term pages.

Worthington Enterprises (Worthington Enterprises) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Worthington Enterprises Inc (NYSE:WOR) » Definitions » Intrinsic Value: DCF (Dividends Based)

Comparable Companies

Traded in Other Exchanges

WTH:Germany WTH:Germany

Address

200 Old Wilson Bridge Road, Columbus, OH, USA, 43085

Website

https://www.worthingtonindustries.com

Worthington Enterprises Inc formerly Worthington Industries Inc is a diversified metals manufacturing company, focused on value-added steel processing and manufactured metal products. Its manufactured metal products include pressure cylinders for liquefied petroleum gas, compressed natural gas, oxygen, refrigerant, and other industrial gas storage; cylinders; helium-filled balloon kits; steel and fiberglass tanks and processing equipment primarily for the oil and gas industry; cryogenic pressure vessels for liquefied natural gas and other gas storage applications; light gauge steel framing for commercial and residential construction; and several other products. The firm's operating segments are Steel Processing, Consumer Products, Building Products and Sustainable Energy Solutions.

Executives

Kerrii B Anderson	director	WENDY'S INTERNATIONAL, INC, 4288 WEST DUBLIN-GRANVILLE RD., DUBLIN OH 43017
Horton Ozey K Jr	director	200 OLD WILSON BRIDGE ROAD, COLUMBUS OH 43085
Geoffrey G Gilmore	officer: President, Worthington Steel	200 OLD WILSON BRIDGE ROAD, COLUMBUS OH 43085
Eric M Smolenski	officer: VP-HUMAN RESOURCES	200 OLD WILSON BRIDGE ROAD, COLUMBUS OH 43085
Catherine M Lyttle	officer: Vice President-Communications	200 OLD WILSON BRIDGE ROAD, COLUMBUS OH 43085
Jeffrey R Klingler	officer: President, Worthington Steel	200 OLD WILSON BRIDGE RD, COLUMBUS OH 43085
Mcconnell John P/oh	director, officer: Chairman/Chief Exec Officer	200 OLD WILSON BRIDGE ROAD, COLUMBUS OH 43085
B Andrew Rose	officer: CFO	200 OLD WILSON BRIDGE ROAD, COLUMBUS OH 43085
Mcconnell John H Ii	director	200 OLD WILSON BRIDGE ROAD, COLUMBUS OH 43085
Patrick J. Kennedy	officer: VP-General Counsel & Secy	200 OLD WILSON BRIDGE ROAD, COLUMBUS OH 43085
David P Blom	director	200 OLD WILSON BRIDGE RD, COLUMBUS OH 43085
Sidney A Ribeau	director
Steven R Witt	officer: Controller	WORTHINGTON INDUSTRIES, INC, 200 OLD WILSON BRIDGE ROAD, COLUMBUS OH 43085
Steven M Caravati	officer: President-Worthington Cylinder	WORTHINGTON INDUSTRIES, INC., 200 OLD WILSON BRIDGE ROAD, COLUMBUS OH 43085
John B Blystone	director	200 OLD WILSON BRIDGE ROAD, N/A, COLUMBUS OH 43085