DCF Tool

NUE

Nucor Corp. – Iron and Steel Mills and Ferroalloy Manufacturing
Nucor and its affiliates are manufacturers of steel and steel products, with operating facilities in the United States, Canada and Mexico. Products produced include: carbon and alloy steel -- in bars, beams, sheet and plate; hollow structural section tubing; electrical conduit; steel piling; steel joists and joist girders; steel deck; fabricated concrete reinforcing steel; cold finished steel; precision castings; steel fasteners; metal building systems; steel grating; and wire and wire mesh. Nucor, through The David J. Joseph Company, also brokers ferrous and nonferrous metals, pig iron and hot briquetted iron / direct reduced iron; supplies ferro-alloys; and processes ferrous and nonferrous scrap. Nucor is North America's largest recycler.
Analysis Results
Intrinsic Value $115.57
Latest Price $133.07
Relative Value 15% overvalued
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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 8.0%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 8.8%. 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)
2022 1.83 1.68
2023 1.98 1.67
2024 2.14 1.66
2025 2.31 1.65
2026 2.49 1.63
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 37.3 billion. This corresponds to a present value of 22.5 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 8.29 billion. Adding in the terminal value gives a total present value of 30.7 billion.

There are presently 266.0 million outstanding shares, so the intrinsic value per share is 115.57.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 12,799,557,000
Current Cash 2,617,863,000
Current Liabilities 5,157,413,000
Current Debt 723,401,000
Non-Cash Working Capital (NCWC) 5,747,682,000
Change in NCWC 1,865,764,000
EBIT 9,421,873,000
Tax Provision 2,078,488,000
Depreciation and Amortization 864,563,000
Capital Expenditure -1,621,989,000
Unlevered Free Cash Flow 8,401,795,370
Current Assets 9,488,662,000
Current Cash 3,047,675,000
Current Liabilities 2,627,860,000
Current Debt 68,791,000
Non-Cash Working Capital (NCWC) 3,881,918,000
Change in NCWC -137,741,000
EBIT 1,602,376,000
Tax Provision -490,000
Depreciation and Amortization 785,466,000
Capital Expenditure -1,543,219,000
Unlevered Free Cash Flow 706,882,000
Current Assets 8,226,370,000
Current Cash 1,834,645,000
Current Liabilities 2,463,774,000
Current Debt 91,708,000
Non-Cash Working Capital (NCWC) 4,019,659,000
Change in NCWC -559,090,000
EBIT 1,971,148,000
Tax Provision 411,897,000
Depreciation and Amortization 734,653,000
Capital Expenditure -1,477,293,000
Unlevered Free Cash Flow 214,006,983
Current Assets 8,636,265,000
Current Cash 1,398,886,000
Current Liabilities 2,806,300,000
Current Debt 147,670,000
Non-Cash Working Capital (NCWC) 4,578,749,000
Change in NCWC 886,164,000
EBIT 3,474,926,000
Tax Provision 748,307,000
Depreciation and Amortization 719,637,000
Capital Expenditure -982,531,000
Unlevered Free Cash Flow 3,292,994,198
Current Assets 6,824,420,000
Current Cash 999,104,000
Current Liabilities 2,824,764,000
Current Debt 692,033,000
Non-Cash Working Capital (NCWC) 3,692,585,000
Change in NCWC 1,092,860,000
EBIT 1,923,537,000
Tax Provision 369,386,000
Depreciation and Amortization 727,061,000
Capital Expenditure -448,555,000
Unlevered Free Cash Flow 2,888,877,230
Current Assets 6,506,393,000
Current Cash 2,195,961,000
Current Liabilities 2,389,966,000
Current Debt 679,259,000
Non-Cash Working Capital (NCWC) 2,599,725,000
Change in NCWC 155,872,000
EBIT 1,467,903,000
Tax Provision 398,243,000
Depreciation and Amortization 687,054,000
Capital Expenditure -604,840,000
Unlevered Free Cash Flow 1,255,846,126
Current Assets 5,754,380,000
Current Cash 2,039,469,000
Current Liabilities 1,385,173,000
Current Debt 114,115,000
Non-Cash Working Capital (NCWC) 2,443,853,000
Change in NCWC -1,107,826,000
EBIT 1,127,602,000
Tax Provision 213,154,000
Depreciation and Amortization 700,017,000
Capital Expenditure -374,123,000
Unlevered Free Cash Flow 6,781,112
Current Assets 6,441,888,000
Current Cash 1,124,144,000
Current Liabilities 2,097,776,000
Current Debt 331,711,000
Non-Cash Working Capital (NCWC) 3,551,679,000
Change in NCWC 499,190,000
EBIT 1,373,833,000
Tax Provision 388,787,000
Depreciation and Amortization 724,423,000
Capital Expenditure -667,982,000
Unlevered Free Cash Flow 1,486,048,252
Current Assets 6,410,046,000
Current Cash 1,511,443,000
Current Liabilities 1,960,216,000
Current Debt 114,102,000
Non-Cash Working Capital (NCWC) 3,052,489,000
Change in NCWC 244,010,000
EBIT 938,018,000
Tax Provision 205,594,000
Depreciation and Amortization 610,208,000
Capital Expenditure -1,196,952,000
Unlevered Free Cash Flow 351,515,492
Current Assets 5,661,364,000
Current Cash 1,157,029,000
Current Liabilities 2,029,568,000
Current Debt 333,712,000
Non-Cash Working Capital (NCWC) 2,808,479,000
Change in NCWC 407,917,000
EBIT 1,045,315,000
Tax Provision 259,814,000
Depreciation and Amortization 607,021,000
Capital Expenditure -947,608,000
Unlevered Free Cash Flow 794,231,663

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