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:
We started the process of determining a valid price forecast for Nucor Corp with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Nucor Corp ranked in the 57th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 58.5%. As for the metrics that stood out in our discounted cash flow analysis of Nucor Corp, consider:
As a business, NUE is generating more cash flow than 87.07% of positive cash flow stocks in the Basic Materials.
Nucor Corp's weighted average cost of capital (WACC) is 8%; for context, that number is higher than only 12.88% 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 12.88% 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 Nucor Corp? See EMN, ESI, CE, GLT, and KRO.
Introduction After seeing the recently-announced deal whereby Cleveland-Cliffs (CLF) is purchasing the US division of ArcelorMittal (MT), I wanted to revisit Nucor (NUE) to have a closer look at how this large steel producer is getting through the fallout of the COVID-19 pandemic. And I was positively impressed with what...
The Investment Doctor on Seeking Alpha | October 3, 2020
No stock is perfect, but some companies are just built to last in a way that sets them apart from the pack. Here are three stocks that stand out for their mix of relatively generous yields, strong businesses, and historical commitment to investors, a factor that has earned them the title of Dividend Aristocrats. If you are looking to buy and hold a stock forever, you need to take a look at Nucor (NYSE: NUE), Chevron (NYSE: CVX), and Consolidated Edison (NYSE: ED).