DCF Tool


Commercial Metals Co. – Iron and Steel Mills and Ferroalloy Manufacturing
at cmc, we firmly believe that our people are the key to our success. our energetic and entrepreneurial spirit has enabled us to remain a leader in the metals industry for over 100 years, and we believe our success is a direct result of the contributions and work ethic of the most talented work force in the industry. we take pride in recruiting and developing the best talent for every facet of our business and encourage that each job is done the right way - correct, consistent and safe. the safety and well-being of our employees is our number one priority. learn more about the cmc family and discover the world of possibilities that awaits when you have a career with a spark!
Analysis Results
Intrinsic Value $73.92
Latest Price $54.13
Relative Value 27% undervalued
Thoughts on this result? Let us know.
Cash Flow (Billions)
Analysis Parameters
New Ticker
Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 8.0%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 9.8%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 8.0%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (billion) Present value (billion)
2024 0.59 0.538
2025 0.638 0.529
2026 0.689 0.52
2027 0.744 0.512
2028 0.804 0.504
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 10.5 billion. This corresponds to a present value of 6.0 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 2.6 billion. Adding in the terminal value gives a total present value of 8.6 billion.

There are presently 116.0 million outstanding shares, so the intrinsic value per share is 73.92.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 3,144,155,000
Current Cash 592,332,000
Current Liabilities 843,714,000
Current Debt 40,513,000
Non-Cash Working Capital (NCWC) 1,748,622,000
Change in NCWC -52,059,000
EBIT 1,168,380,000
Tax Provision 262,207,000
Depreciation and Amortization 218,830,000
Capital Expenditure -606,665,000
Unlevered Free Cash Flow 455,432,144
Current Assets 3,441,468,000
Current Cash 672,596,000
Current Liabilities 1,356,987,000
Current Debt 388,796,000
Non-Cash Working Capital (NCWC) 1,800,681,000
Change in NCWC 487,705,000
EBIT 1,311,412,000
Tax Provision 297,885,000
Depreciation and Amortization 175,024,000
Capital Expenditure -449,988,000
Unlevered Free Cash Flow 1,266,323,255
Current Assets 2,736,828,000
Current Cash 497,745,000
Current Liabilities 980,473,000
Current Debt 54,366,000
Non-Cash Working Capital (NCWC) 1,312,976,000
Change in NCWC 368,090,000
EBIT 609,547,000
Tax Provision 121,153,000
Depreciation and Amortization 167,613,000
Capital Expenditure -184,165,000
Unlevered Free Cash Flow 822,796,688
Current Assets 2,214,103,000
Current Cash 542,103,000
Current Liabilities 745,263,000
Current Debt 18,149,000
Non-Cash Working Capital (NCWC) 944,886,000
Change in NCWC -265,507,000
EBIT 440,226,000
Tax Provision 92,476,000
Depreciation and Amortization 165,758,000
Capital Expenditure -187,618,000
Unlevered Free Cash Flow 43,061,925
Current Assets 2,080,005,000
Current Cash 192,461,000
Current Liabilities 694,590,000
Current Debt 17,439,000
Non-Cash Working Capital (NCWC) 1,210,393,000
Change in NCWC 277,858,000
EBIT 340,217,000
Tax Provision 69,681,000
Depreciation and Amortization 158,671,000
Capital Expenditure -138,836,000
Unlevered Free Cash Flow 549,603,880
Current Assets 2,077,205,000
Current Cash 622,473,000
Current Liabilities 541,943,000
Current Debt 19,746,000
Non-Cash Working Capital (NCWC) 932,535,000
Change in NCWC 60,486,000
EBIT 220,713,000
Tax Provision 30,147,000
Depreciation and Amortization 131,659,000
Capital Expenditure -174,655,000
Unlevered Free Cash Flow 197,970,360
Current Assets 1,713,900,000
Current Cash 252,595,000
Current Liabilities 608,438,000
Current Debt 19,182,000
Non-Cash Working Capital (NCWC) 872,049,000
Change in NCWC -150,883,000
EBIT 119,887,000
Tax Provision 9,519,000
Depreciation and Amortization 125,071,000
Capital Expenditure -213,120,000
Unlevered Free Cash Flow -139,619,845
Current Assets 2,048,125,000
Current Cash 517,544,000
Current Liabilities 821,118,000
Current Debt 313,469,000
Non-Cash Working Capital (NCWC) 1,022,932,000
Change in NCWC -211,698,000
EBIT 198,929,000
Tax Provision 12,647,000
Depreciation and Amortization 126,940,000
Capital Expenditure -163,332,000
Unlevered Free Cash Flow -78,693,281
Current Assets 2,307,101,000
Current Cash 485,323,000
Current Liabilities 617,348,000
Current Debt 30,200,000
Non-Cash Working Capital (NCWC) 1,234,630,000
Change in NCWC -13,376,000
EBIT 332,127,000
Tax Provision 83,206,000
Depreciation and Amortization 132,779,000
Capital Expenditure -119,580,000
Unlevered Free Cash Flow 218,936,524
Current Assets 2,553,791,000
Current Cash 434,925,000
Current Liabilities 891,153,000
Current Debt 20,293,000
Non-Cash Working Capital (NCWC) 1,248,006,000
Change in NCWC 30,489,000
EBIT 225,725,000
Tax Provision 42,724,000
Depreciation and Amortization 136,004,000
Capital Expenditure -101,749,000
Unlevered Free Cash Flow 223,872,713
Current Assets 2,366,195,000
Current Cash 378,770,000
Current Liabilities 781,109,000
Current Debt 11,201,000
Non-Cash Working Capital (NCWC) 1,217,517,000
Change in NCWC 112,447,000
EBIT 193,726,000
Tax Provision 57,979,000
Depreciation and Amortization 136,548,000
Capital Expenditure -89,035,000
Unlevered Free Cash Flow 269,193,915
Current Assets 2,239,831,000
Current Cash 262,422,000
Current Liabilities 901,134,000
Current Debt 28,795,000
Non-Cash Working Capital (NCWC) 1,105,070,000
Change in NCWC 134,953,000
EBIT 232,896,000
Tax Provision -46,190,000
Depreciation and Amortization 137,310,000
Capital Expenditure -113,853,000
Unlevered Free Cash Flow 391,306,000

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