DCF Tool

CMC

Commercial Metals Co. – Iron and Steel Mills and Ferroalloy Manufacturing
Commercial Metals Company and its subsidiaries manufacture, recycle and fabricate steel and metal products, related materials and services through a network including seven electric arc furnace ("EAF") mini mills, two EAF micro mills, a rerolling mill, steel fabrication and processing plants, construction-related product warehouses, and metal recycling facilities in the U.S. and Poland.
Analysis Results
Intrinsic Value $662.86
Latest Price $49.35
Relative Value 93% undervalued
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Cash Flow (Billions)
Analysis Parameters
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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 37.7%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 7.9%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 37.7%, 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)
2023 1.66 1.53
2024 2.28 1.96
2025 3.14 2.5
2026 4.32 3.18
2027 5.95 4.06
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 102 billion. This corresponds to a present value of 64.6 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 13.2 billion. Adding in the terminal value gives a total present value of 77.8 billion.

There are presently 117.0 million outstanding shares, so the intrinsic value per share is 662.86.

Financial Statements

The following data was to determine the past cash flows.

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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