Is WillScot Holdings Undervalued at $30.40?

Monday, Jul 14, 2025 2:58 pm ET1min read

WillScot Holdings (WSC) stock has seen a 37% share price rise in the past two months on the NASDAQCM. Despite this, the company is still considered undervalued with an intrinsic value of $41.87, higher than its current market value. The stock's high beta and expected doubling of earnings over the next few years indicate strong growth potential, making it a potential bargain for investors.

WillScot Holdings (WSC) stock has experienced a notable 37% share price rise over the past two months on the NASDAQCM. Despite this recent increase, the company is still considered undervalued with an intrinsic value estimated at $41.87, which is higher than its current market value. This discrepancy suggests that the stock might present a bargain for investors.

The intrinsic value is derived from a two-stage discounted cash flow (DCF) model, which estimates future cash flows and discounts them to their present value. This method indicates that WSC's current market price is significantly lower than its estimated intrinsic value, potentially indicating that the stock is undervalued [2].

The stock's high beta and expected doubling of earnings over the next few years further highlight its strong growth potential. A high beta suggests that the stock's price movements are more volatile than the overall market, but it also indicates that the stock has the potential for above-average returns. The expected earnings growth underscores the company's strong fundamentals and its ability to generate significant cash flows in the future.

Investors should be cautious, as valuations are imprecise instruments. The stock's high beta and potential for significant earnings growth could lead to higher returns, but it also carries higher risk. It is essential to conduct thorough due diligence and consider the company's specific risks and opportunities before making investment decisions.

References:
[1] https://www.marketscreener.com/quote/stock/LAZYDAYS-HOLDINGS-INC-42413946/news/LAZYDAYS-ANNOUNCES-CLOSING-OF-1-FOR-30-REVERSE-STOCK-SPLIT-50493600/
[2] https://finance.yahoo.com/news/pilgrims-pride-corporation-nasdaq-ppc-114001291.html

Is WillScot Holdings Undervalued at $30.40?

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