Commercial Metals manufactures, recycles, and markets steel and metal products, and related materials and services in the United States and internationally. The company was founded in 1915 and is based in Irving, Texas.
CMC Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for COMMERCIAL METALS Co with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that COMMERCIAL METALS Co ranked in the 91th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 2285.17%. The most interesting components of our discounted cash flow analysis for COMMERCIAL METALS Co ended up being:
Its compound free cash flow growth rate, as measured over the past 5.66 years, is 0.55% -- higher than 83.53% of stocks in our DCF forecasting set.
As a business, CMC is generating more cash flow than 79.49% of positive cash flow stocks in the Basic Materials.
COMMERCIAL METALS Co's weighted average cost of capital (WACC) is 7%; for context, that number is higher than merely 11.77% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Basic Materials that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as CMC, try VHI, FRTA, ITP, ZEUS, and GMS.