Wesco International Inc
WCCWithin bandExpectations · fairHeld by 6 superinvestors.
SEC 10-K · fundamentals
Business quality
as of 2025-12-31Valuation basis: trailing twelve months to 2026-06-30 — latest 10-K plus unaudited 10-Q filings.
- Revenue growth
- +7.8%
- Net margin
- 2.7%
- ROE
- 12.7%
- FCF margin
- 0.1%
Valuation · value band
In fair-value range
Zero-growth floor
$119
Central IV
$276
Optimistic top
$427
Wesco International Inc (WCC): Two methods value the business — a conservative owner-earnings DCF and a growth-credited Greenwald estimate, $119–$427 / sh. Today’s price sits inside both (price $348 as of 2026-08-26).
The middle figure is the main read. The right end is the optimistic case under the same conservative caps — not an absolute ceiling.
Revenue growth 9% (lower of historical trend and fundamental cap, capped by moat) · moat 20 yr · discount 12.1% · Zero-growth downside $119
Price as of 2026-08-26 · yahoo · DGS10 4.7% @ 2026-08-26.
Method & numbers
Model cautions
- Growth nearly matches the discount rate — the estimate is sensitive to assumptions.
A conservative intrinsic-value band (zero-growth floor to growth-capped DCF) plus a tangible asset floor — not investment advice, not a buy/sell signal, and not a price target.
Owner-earnings DCF $157.16 – $331.27 · Greenwald $208.88 – $426.82 (neutral $313.49) · zero-growth base $169.00 · reproduction $3.72
Moat Franchise (moat) · terminal value 20% of present value · owner-earnings yield 5% vs 10Y 4.7%.
Graham earnings-power value (normalized NOPAT)$119.22 – $169.00 / sh
Normalized NOPAT = average operating margin over the years shown × latest-year revenue × (1 − normalized tax); then + D&A − maintenance capex (write A). Unlevered (pre-interest, attributable to all capital). Capitalized at the 9–11% rate band (read as a WACC proxy). Enterprise → equity bridge applied: + cash − total debt.
Years: TTM 2026-06-30, 2024, 2023, 2022, 2021
v1 simplifications: Maintenance capex (degraded) deducted in full cash (write A): EPV = (NOPAT + D&A − maintenance capex) / WACC; no tax shield on the capex term. Maintenance-capex methods diverge by 321% (> 50%); estimate is degraded. Share-based compensation is left as a real expense (not added back). Operating margin is below its multi-year average (cyclical/declining): normalized margin capped at the latest year — no peak-margin capitalization (audit #2).
Buffett owner-earnings value$136.78 – $162.70 / sh
Owner earnings = average net income + average D&A − maintenance capex (zero-growth floor; no ΔNWC). Levered (starts from net income, already after interest — an equity-holder stream). Capitalized at the 10.6–12.6% band (9–11% base + 1.6pp leverage premium). No enterprise→equity bridge: the capitalized result is already equity value (subtracting debt would double-count interest).
Years: TTM 2026-06-30, 2024, 2023, 2022, 2021
v1 simplifications: Owner earnings = net income + D&A − maintenance capex (degraded); the working-capital change is excluded (maintenance ΔNWC ≈ 0; growth ΔNWC is carried in growth value, not double-counted). Maintenance-capex methods diverge by 321% (> 50%); estimate is degraded. One-time items are not separately normalized (multi-year averaging smooths them partially). Share-based compensation is left as a real expense (not added back); see the SBC/OE disclosure. Capitalized at the 9–11% base band plus a 1.6pp leverage premium (cost of equity rises with leverage — MM Proposition II). Net debt is about 6.1 years of owner earnings, adding 1.6pp of cost-of-equity risk premium.
Reproduction value = tangible net assets $183.80M = $3.72 / sh. Tangible net assets = shareholders' equity − goodwill − intangibles, ÷ diluted shares (no R&D history to capitalize).
Moat reading: Franchise test compares earnings power (EPV) against reproduction value on both AV_conservative (tangible + capitalized R&D) and AV_reproduction (conservative + acquired-reset proxy). Both must clear the franchise multiple for a moat signal; near it, a commodity; below it, value destruction. A directional reading, not a verdict.
Assumes a wide moat · competitive-advantage period ≈ 20 years (earnings intact, ROIC stable over history).
Growth value: if the moat holds for 20 yr at ROIIC ≈ 24%, $39.88–$257.82 / sh (neutral $144.49). Conservative, not a forecast.
Window TTM 2026-06-30, FY 2024, 2023, 2022, 2021 · discount band 9%–11% · normalized tax 21% (Average effective tax rate over 5 year(s), capped at the statutory 21%.) · diluted shares.
Baseline 9%–11%, net debt ≈ 6.1 years of owner earnings → +1.6pp cost-of-equity premium → effective 10.6%–12.6%.
Owner-earnings DCF: growth g₁ 9% · OE FY TTM 2026-06-30, 2024, 2023, 2022, 2021 · Discount band: 10.71%–13.55% (DGS10 +4.5% to a 12% strict end, each +1.55pp for leverage premium, as of 2026-08-26). No enterprise→equity bridge: owner earnings already flow to shareholders (post-interest), so no net cash is added and no debt subtracted — matching the engine owner-earnings lamp. Two-method midpoint gap 13%.
Valuation basis: trailing twelve months to 2026-06-30 — latest 10-K plus unaudited 10-Q filings.
What the price is betting
Today's price pencils in about 11.8% a year in owner-earnings for the next few years. Revenue actually grew 11.5% a year.
About its own track record.
Roughly, the price needs its historical revenue growth to run about 14 more years to hold up.
SEC 13F · holders
Superinvestors Holding This Security
6 holders · $387.2M combined · this quarter +0 opened / -1 exited
- Value$229.0MWeight (prev→now)7.7% → 4.2% ▼
- Value$125.5MWeight (prev→now)0.5% → 0.5% ▲
- Value$24.7MWeight (prev→now)0.1% → 0.1% ▼
- Value$3.6MWeight (prev→now)0.8% → 0.8% ▲
- Value$3.0MWeight (prev→now)0.0% → 0.0% ▼
- Value$1.4MWeight (prev→now)0.0% → 0.0% ▲
SEC 13F · notes
Written summary
Written summary
Wesco International Inc (WCC) is held by 6 of the superinvestors tracked on Compounder, with a combined $387.2M in reported 13F value. The largest position belongs to Seth Klarman, where it makes up 4.2% of the portfolio.
Other notable holders by value include Christopher Davis (0.5% of its book), Richard Pzena (0.1% of its book) and Robert Olstein (0.8% of its book).
Over the latest quarter, 0 of the tracked filers opened a new position in WCC, 1 added to existing ones, 4 trimmed, and 1 sold out entirely.
Holder counts and values reflect the most recent SEC Form 13F filings, through the quarter ended 2026-06-30. Source: SEC EDGAR. A 13F shows only long US-listed positions and can lag the real portfolio by up to 45 days, so this is disclosed long ownership, not a complete picture.
SEC 13F · co-ownership
Also held by these investors
Investors holding Wesco International Inc (WCC) also commonly hold →
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WCC's price is not below its conservative value band. See current strike-zone stocks
Sources· SEC EDGAR 13F as of 2026-06-30 · filed 2026-08-14
Educational data only — not investment advice. 13F positions are self-reported and can lag up to 45 days.
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