Summit Materials supplies aggregates, cement, ready-mixed concrete and asphalt in the United States and British Columbia, Canada. The company was founded in 2009 and is based in Denver, Colorado.
SUM Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Summit Materials Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Summit Materials Inc ranked in the 83th percentile in terms of potential gain offered. Moreover, under all the scenarios we modelled, the output consistently forecasted positive returns. The most interesting components of our discounted cash flow analysis for Summit Materials Inc ended up being:
The stock's equity weight, or the proportion of capital from equity relative to debt, is 44. Its equity weight surpasses that of merely 24.58% of free cash flow generating stocks in the Basic Materials sector.
The company's compound free cash flow growth rate over the past 4.92 years comes in at 0.63%; that's greater than 86.84% of US stocks we're applying DCF forecasting to.
Summit Materials Inc's weighted average cost of capital (WACC) is 10%; for context, that number is higher than 79.65% 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 SUM, try AXTA, MT, UFPI, POL, and CMC.