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 96th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 9197.33% on a DCF basis. 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 5.3 years, is 1.09% -- higher than 91.34% of stocks in our DCF forecasting set.
The company has produced more trailing twelve month cash flow than 78.52% of its sector Basic Materials.
COMMERCIAL METALS Co's weighted average cost of capital (WACC) is 7%; for context, that number is higher than only 11.37% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
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Commercial Metals (CMC) says it will build a new merchant bar quality micromill at its Arizona operations near Phoenix and divest its southern California rebar facility.The new capacity will replace CMC's existing higher-cost rebar capacity at its mill in Rancho Cucamonga, Calif., which halted melt operations in late 2019.Commercial Metals...