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:
Below please find a table outlining a discounted cash flow forecast for CMC, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that COMMERCIAL METALS Co ranked in the 83th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 846.83% on a DCF basis. In terms of the factors that were most noteworthy in this DCF analysis for CMC, they are:
Interest coverage, a measure of earnings relative to interest payments, is 6.94 -- which is good for besting 64.02% of its peer stocks (US stocks in the Basic Materials sector with positive cash flow).
COMMERCIAL METALS Co's weighted average cost of capital (WACC) is 6%; for context, that number is higher than just 13.38% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of COMMERCIAL METALS Co? See BLD, MT, KL, AXTA, and SUM.