Nucor Corporation manufactures and sells steel and steel products in the United States and internationally. It operates through three segments: Steel Mills, Steel Products, and Raw Materials. The company's products are used in automotive, energy, agricultural, heavy equipment, and transportation sectors. The company was founded in 1940 and is based in Charlotte, North Carolina.
NUE Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Nucor Corp. To summarize, we found that Nucor Corp ranked in the 97th percentile in terms of potential gain offered. Our DCF analysis implies the stock could yield a return of 10638.17% if fairly valued; such returns are always unlikely, though, so further investigation is likely warranted. The most interesting components of our discounted cash flow analysis for Nucor Corp ended up being:
In the past 5.8 years, Nucor Corp has a compound free cash flow growth rate of 1.35%; that's better than 93.35% of cash flow producing equities in the Basic Materials sector, where it is classified.
Nucor Corp's weighted average cost of capital (WACC) is 7%; for context, that number is higher than only 16.5% of tickers in our DCF set.
NUE'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 only 16.5% 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 NUE, try CMT, BMCH, BTG, FRD, and WMLPQ.