Vulcan Materials Company (Holding Company) (VMC) Company Bio
Vulcan Materials Company produces and sells construction aggregates, asphalt mix, and ready-mixed concrete primarily in the United States. It operates through four segments: Aggregates, Asphalt Mix, Concrete, and Calcium. The company was founded in 1909 and is based in Birmingham, Alabama.
VMC Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Vulcan Materials CO with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Vulcan Materials CO ranked in the 68th percentile in terms of potential gain offered. Moreover, under all the scenarios we modelled, the output consistently forecasted positive returns. As for the metrics that stood out in our discounted cash flow analysis of Vulcan Materials CO, consider:
The company's compound free cash flow growth rate over the past 5.19 years comes in at 0.53%; that's greater than 83% of US stocks we're applying DCF forecasting to.
As a business, VMC is generating more cash flow than 77.72% of positive cash flow stocks in the Basic Materials.
VMC'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 29.25% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
ROCK, CRH, RIO, TROX, and BCC can be thought of as valuation peers to VMC, in the sense that they are in the Basic Materials sector and have a similar price forecast based on DCF valuation.
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