WestRock Company (WRK) Stock Analysis
Score BBlue Chip · Grade D · Unknown
$51.51
$64.61
+25.4%
8/10
D
Blue Chip
Investment Thesis
Price is above modeled value range. Quality supports holding but not attractive for new positions.
Appears undervalued but quality concerns keep the score lower.
For New Investors
Price above modeled value range
For Current Holders
Quantitative score: neutral
Buy if
- Price drops 15-20% (improves asymmetry)
- Bull scenario catalysts materialize
- Market-wide correction creates opportunity
Sell if
- Bear scenario triggers occur
- Quality metrics deteriorate (ROIC declining)
- Better alternatives emerge
Valuation
Fair Value estimate: $64.61 (+25.4%). Significantly undervalued.
FCF DCF Model
$56.55
EV/EBITDA
$77.27
Blended Fair Value
$64.61
Confidence
High
Methods
FCF 2-Stage DCF (turnaround), EV/EBITDA (turnaround), Revenue Multiple (turnaround)
Quality Analysis
43/120 points
Low Quality
ROE (3Y Avg)
-0.3%
ROIC-WACC Spread
-13.6%
D/E Ratio
1.0x
Current Ratio
1.4x
Interest Coverage
-3x
FCF Positive Years
3/3
Quality Flags
- Low ROE: -0.3% (need >15%, got 0/20 pts)
- ROIC spread: -13.6pp (got 0/25 pts)
- Leverage: D/E 1.0x (8/15 pts)
- Interest coverage: -2.8x (0/10 pts)
Market Sentiment
Wall Street Consensus
$53.00
+2.9% Upside
Range: $34.00 — $60.00
Analyst consensus data not available.
Trend & Technical
Insufficient data to calculate SMA 200.
Technical analysis unavailable
Risk & Reward
Asymmetry Ratio
4.44:1
Expected Return
+17.1%
Bull Upside
+44.4%
Bear Downside
-10.0%
Excellent asymmetry: 4.44:1 ratio. Upside significantly outweighs downside.
Verdict: Very Favorable
Scenario Analysis
Bear
Base
Bull
Buy Zone & Action Plan
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AI Executive Summary
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Technical Analysis
RSI, MACD, moving averages, trend signals, and momentum indicators.
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Frequently Asked Questions
What is the fair value of WRK?
Based on our multi-method conviction analysis, the estimated fair value of WestRock Company (WRK) is $64.61. This is calculated by blending FCF 2-Stage DCF (turnaround), EV/EBITDA (turnaround), Revenue Multiple (turnaround) and applying a quality premium of 0% based on the company's fundamentals. The confidence level of this estimate is high.
Is WRK a buy, sell, or hold?
WRK currently has a HOLD rating with a conviction score of 8/10. Price is above modeled value range. Quality supports holding but not attractive for new positions. Price above modeled value range.
Is WRK a high-quality stock?
WestRock Company has a quality grade of D (43/120 points), rated as Low Quality. Key metrics include ROE of -0.3%, ROIC-WACC spread of -13.6%, and D/E ratio of 1.0x.
What type of stock is WRK?
WRK is classified as a "blue_chip" in our framework. Mature growth: 5.4%, Cyclical sector: Consumer Cyclical, Moderate growth: 5.4%, Dividend paying: 2.3%, Market-like beta: 1.05
What do Wall Street analysts say about WRK?
Multiple Wall Street analysts have a consensus price target of $53.00 for WRK, representing +2.9% upside. Targets range from $34.00 to $60.00. The consensus recommendation is "—". Analyst consensus data not available.
What are the risks of investing in WRK?
The risk/reward asymmetry ratio for WRK is 4.44:1, rated as Very Favorable. Excellent asymmetry: 4.44:1 ratio. Upside significantly outweighs downside. The expected return is +17.1%, with bull case upside of +44.4% and bear case downside of -10.0%.
What is the current trend for WRK?
WRK is in a unknown trend. Insufficient data to calculate SMA 200. The technical score is —/100.
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Last updated: May 19, 2026 · Framework version 3.7
This analysis is for informational purposes only and should not be considered financial advice. Always do your own research before making investment decisions.