Discounted Cash Flow (DCF) Analysis Levered
Commercial Metals Company (CMC)
$50.67
+0.92 (+1.85%)
All numbers are in Millions, Currency in USD
Free Cash Flow
Year A/P | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
| Revenue | 4,643.72 | 5,829 | 5,476.49 | 6,729.76 | 8,913.48 | 10,580.53 | 12,559.35 | 14,908.27 | 17,696.49 | 21,006.17 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 158.68 | 37 | 791.20 | 228.47 | 700.31 | 629.56 | 747.30 | 887.07 | 1,052.97 | 1,249.91 |
| Operating Cash Flow (%) | ||||||||||
| Capital Expenditure | -174.66 | -138.84 | -187.62 | -184.16 | -449.99 | -367.22 | -435.90 | -517.43 | -614.20 | -729.07 |
| Capital Expenditure (%) | ||||||||||
| Free Cash Flow | -15.98 | -101.83 | 603.59 | 44.31 | 250.32 | 262.34 | 311.40 | 369.64 | 438.77 | 520.83 |
Weighted Average Cost Of Capital
| Share price | $ 50.67 |
|---|---|
| Beta | 1.308 |
| Diluted Shares Outstanding | 122.37 |
| Cost of Debt | |
| Tax Rate | 19.66 |
| After-tax Cost of Debt | 2.72% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 10.715 |
| Total Debt | 1,502.05 |
| Total Equity | 6,200.61 |
| Total Capital | 7,702.65 |
| Debt Weighting | 19.50 |
| Equity Weighting | 80.50 |
| Wacc |
Build Up Free Cash Flow
Year A/P | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
| Revenue | 4,643.72 | 5,829 | 5,476.49 | 6,729.76 | 8,913.48 | 10,580.53 | 12,559.35 | 14,908.27 | 17,696.49 | 21,006.17 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 158.68 | 37 | 791.20 | 228.47 | 700.31 | 629.56 | 747.30 | 887.07 | 1,052.97 | 1,249.91 |
| Capital Expenditure | -174.66 | -138.84 | -187.62 | -184.16 | -449.99 | -367.22 | -435.90 | -517.43 | -614.20 | -729.07 |
| Free Cash Flow | -15.98 | -101.83 | 603.59 | 44.31 | 250.32 | 262.34 | 311.40 | 369.64 | 438.77 | 520.83 |
| WACC | ||||||||||
| PV LFCF | 240.35 | 261.38 | 284.25 | 309.13 | 336.19 | |||||
| SUM PV LFCF | 1,431.30 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 9.15 |
| Free cash flow (t + 1) | 531.25 |
| Terminal Value | 7,430.07 |
| Present Value of Terminal Value | 4,795.95 |
Intrinsic Value
| Enterprise Value | 6,227.25 |
|---|---|
| Net Debt | 829.45 |
| Equity Value | 5,397.80 |
| Shares Outstanding | 122.37 |
| Equity Value Per Share | 44.11 |