As of May 22, 2025, WSP Global Inc has a Discounted Cash Flow (DCF) derived fair value of $317.32 per share. With the current market price at $275.50, this represents a potential upside of 15.2%.
| Key Metrics | Value |
|---|---|
| DCF Fair Value (5-year) | $207.61 |
| DCF Fair Value (10-year) | $317.32 |
| Potential Upside (5-year) | -24.6% |
| Potential Upside (10-year) | 15.2% |
| Discount Rate (WACC) | 6.4% - 8.3% |
Revenue is projected to grow from $16167 million in 12-2024 to $28697 million by 12-2034, representing a compound annual growth rate of approximately 5.9%.
| Fiscal Year | Revenue (USD millions) | Growth |
|---|---|---|
| 12-2024 | 16167 | 12% |
| 12-2025 | 14078 | -13% |
| 12-2026 | 15034 | 7% |
| 12-2027 | 16202 | 8% |
| 12-2028 | 17706 | 9% |
| 12-2029 | 19481 | 10% |
| 12-2030 | 21091 | 8% |
| 12-2031 | 22288 | 6% |
| 12-2032 | 24502 | 10% |
| 12-2033 | 26796 | 9% |
| 12-2034 | 28697 | 7% |
Net profit margin is expected to improve from 4% in 12-2024 to 9% by 12-2034, driven by operational efficiency and economies of scale.
| Fiscal Year | Net Profit (USD millions) | Profit Margin |
|---|---|---|
| 12-2024 | 681 | 4% |
| 12-2025 | 722 | 5% |
| 12-2026 | 900 | 6% |
| 12-2027 | 1103 | 7% |
| 12-2028 | 1343 | 8% |
| 12-2029 | 1622 | 8% |
| 12-2030 | 1786 | 8% |
| 12-2031 | 1918 | 9% |
| 12-2032 | 2142 | 9% |
| 12-2033 | 2379 | 9% |
| 12-2034 | 2587 | 9% |
with a 5-year average of $145 million. Projected CapEx is expected to maintain at approximately 1% of revenue.
Depreciation is based on an average useful life of 5 years for capital assets.
| Fiscal Year | D&A (USD millions) |
|---|---|
| 12-2025 | 159 |
| 12-2026 | 171 |
| 12-2027 | 176 |
| 12-2028 | 181 |
| 12-2029 | 194 |
| 12-2030 | 211 |
Net working capital is expected to increase gradually, with projected changes affecting free cash flow.
| Components | Average Days |
|---|---|
| Days Receivables | 115 |
| Days Inventory | 0 |
| Days Payables | 107 |
| Fiscal Year | EBITDA | Tax | CapEx | Change in NWC | FCF |
|---|---|---|---|---|---|
| 9M/2025 | 1057 | 195 | 124 | (716) | 1454 |
| 2026 | 1682 | 325 | 177 | 313 | 868 |
| 2027 | 1985 | 398 | 191 | 481 | 916 |
| 2028 | 2346 | 485 | 209 | 340 | 1313 |
| 2029 | 2773 | 585 | 230 | 539 | 1419 |
| Valuation Method | Fair Price (USD) | Potential Upside |
|---|---|---|
| 5-Year DCF (Growth) | 207.61 | -24.6% |
| 10-Year DCF (Growth) | 317.32 | 15.2% |
| 5-Year DCF (EBITDA) | 165.23 | -40.0% |
| 10-Year DCF (EBITDA) | 243.73 | -11.5% |
Is WSP Global Inc (WSP.TO) a buy or a sell? WSP Global Inc is definitely a buy. Based on our DCF analysis, WSP Global Inc (WSP.TO) appears to be moderately undervalued with upside potential of 15.2%. The company's strong projected growth in revenue and profitability, coupled with consistent capital expenditure, supports our positive outlook on its intrinsic value.
Key investment drivers include:
Investors should consider a buy at the current market price of $275.50.