As of December 15, 2025, World Fuel Services Corp's estimated intrinsic value ranges from $22.48 to $48.54 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $37.14 | +53.1% |
| Discounted Cash Flow (5Y) | $36.79 | +51.7% |
| Dividend Discount Model (Multi-Stage) | $22.48 | -7.3% |
| Dividend Discount Model (Stable) | $36.44 | +50.2% |
| Earnings Power Value | $48.54 | +100.1% |
Is World Fuel Services Corp (INT) undervalued or overvalued?
With the current market price at $24.26, the stock appears to be significantly undervalued.
Intrinsic value represents the "true" worth of a company based on its fundamentals rather than market sentiment. We've employed multiple methodologies to triangulate World Fuel Services Corp's intrinsic value, including:
The cost of capital is a critical factor in valuation models, representing the required return for investors.
| WACC Component | Low | High |
|---|---|---|
| Long-term bond rate | 4.2% | 4.7% |
| Equity market risk premium | 5.0% | 6.0% |
| Adjusted beta | 0.58 | 0.62 |
| Cost of equity | 7.1% | 8.9% |
| Cost of debt | 8.5% | 15.4% |
| Tax rate | 24.7% | 27.1% |
| Debt/Equity ratio | 0.56 | 0.56 |
| After-tax WACC | 6.8% | 9.7% |
Our DCF model projects cash flows over 5-year and 10-year horizons, with the following key assumptions:
| DCF Model | Fair Value | Enterprise Value | % from Terminal Value |
|---|---|---|---|
| 5-Year Growth | $37 | $2,870M | 77.9% |
| 10-Year Growth | $37 | $2,891M | 59.7% |
| 5-Year EBITDA | $24 | $2,102M | 69.8% |
| 10-Year EBITDA | $28 | $2,306M | 49.5% |
The DDM values a company based on its expected future dividend payments. We used two approaches:
EPV assesses a company's value based on its current normalized earnings power, assuming no growth.
| EPV Component | Value |
|---|---|
| Normalized Earnings | $289M |
| Discount Rate (WACC) | 9.7% - 6.8% |
| Enterprise Value | $2,968M - $4,231M |
| Net Debt | $584M |
| Equity Value | $2,385M - $3,647M |
| Outstanding Shares | 62M |
| Fair Value | $38 - $59 |
| Selected Fair Value | $48.54 |
| Metric | Value |
|---|---|
| Market Capitalization | $1507M |
| Enterprise Value | $2091M |
| Trailing P/E | 13.20 |
| Forward P/E | 15.77 |
| Trailing EV/EBITDA | 6.95 |
| Current Dividend Yield | 205.67% |
| Dividend Growth Rate (5Y) | 17.61% |
| Debt-to-Equity Ratio | 0.56 |
To determine the most reliable intrinsic value estimate, we weigh each valuation method based on:
| Valuation Method | Weight | Weighted Value |
|---|---|---|
| Discounted Cash Flow (10Y) | 30% | $11.14 |
| Discounted Cash Flow (5Y) | 25% | $9.20 |
| Dividend Discount Model (Multi-Stage) | 20% | $4.50 |
| Dividend Discount Model (Stable) | 15% | $5.47 |
| Earnings Power Value | 10% | $4.85 |
| Weighted Average | 100% | $35.16 |
Based on our comprehensive valuation analysis, World Fuel Services Corp's intrinsic value is $35.16, which is approximately 44.9% above the current market price of $24.26.
Key investment considerations:
Given these factors, we believe World Fuel Services Corp is currently significantly undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.