Martin Marietta Materials supplies aggregates products and heavy building materials for the construction industry in the United States and internationally. The company was founded in 1993 and is based in Raleigh, North Carolina.
MLM Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Martin Marietta Materials Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Martin Marietta Materials Inc ranked in the 52th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 33.67%. In terms of the factors that were most noteworthy in this DCF analysis for MLM, they are:
As a business, MLM is generating more cash flow than 78.65% of positive cash flow stocks in the Basic Materials.
Martin Marietta Materials Inc's weighted average cost of capital (WACC) is 8%; for context, that number is higher than merely 24.4% of tickers in our DCF set.
MLM's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than merely 24.4% 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 Martin Marietta Materials Inc? See CMP, STLD, SVM, SCL, and SWM.
Not long ago we published an article about Martin Marietta (MLM). For investors looking at the company for the first time, we suggest reading our first article for a quick primer on the business and the reasons why we liked the business. There were two main key points from that...