DCF Tool


Nucor Corp. – Iron and Steel Mills and Ferroalloy Manufacturing
nucor corporation and its affiliates (nucor) manufactures steel and steel products. the company also produces direct reduced iron (dri) for use in the company’s steel mills. the company’s operations include several international trading companies that buy and sell steel and steel products manufactured by the company and others. in 2012, it recycled approximately 19.2 million tons of scrap steel. in may 2012, arcelormittal announced the sale of its steel foundation distribution business in nafta, namely skyline steel and astralloy (skyline steel) to nucor. the transaction includes 100% of arcelormittal’s interest in skyline steel’s operations in the nafta countries and the caribbean.in june 2012, the company acquired skyline steel llc and its subsidiaries. in august 2012, the company completed the sale of the assets of their nucor wire products pennsylvania facility located in new salem, pennsylvania, to an affiliate of wire mesh corporation.
Analysis Results
Intrinsic Value $3,186.06
Latest Price $170.41
Relative Value 95% undervalued
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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 32.0%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 4.0%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 32.0%, 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)
2023 9.75 9.38
2024 12.9 11.9
2025 17.0 15.1
2026 22.4 19.2
2027 29.6 24.4
Terminal Value

Assuming the company was sold after the projection period at an exit multiple of 30, the terminal value of the company would be 888 billion. This corresponds to a present value of 703 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 80.0 billion. Adding in the terminal value gives a total present value of 783 billion.

There are presently 246.0 million outstanding shares, so the intrinsic value per share is 3186.06.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 14,691,684,000
Current Cash 4,857,798,000
Current Liabilities 4,329,744,000
Current Debt 77,663,000
Non-Cash Working Capital (NCWC) 5,581,805,000
Change in NCWC -165,877,000
EBIT 10,516,816,000
Tax Provision 2,165,204,000
Depreciation and Amortization 1,061,634,000
Capital Expenditure -1,947,897,000
Unlevered Free Cash Flow 7,241,991,880
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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