Discounted Cash Flow (DCF) Analysis Levered

Commercial Metals Company (CMC)

$36.65

+2.25 (+6.54%)

All numbers are in Millions, Currency in USD

Stock DCF: 21.47 | 36.65 | overvalue

Free Cash Flow

Year A/P	2017 Actual	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Projected	2023 Projected	2024 Projected	2025 Projected	2026 Projected
Revenue	4,569.68	4,643.72	5,829	5,476.49	6,729.76	7,469.73	8,291.06	9,202.69	10,214.57	11,337.71
Revenue (%)
Operating Cash Flow	174.47	158.68	37	791.20	228.47	384.13	426.36	473.24	525.28	583.04
Operating Cash Flow (%)
Capital Expenditure	-213.12	-174.66	-138.84	-187.62	-184.16	-253.51	-281.38	-312.32	-346.67	-384.78
Capital Expenditure (%)
Free Cash Flow	-38.65	-15.98	-101.83	603.59	44.31	130.62	144.98	160.92	178.61	198.25

Weighted Average Cost Of Capital

Share price	$ 36.65
Beta	1.125
Diluted Shares Outstanding	121.98
Cost of Debt
Tax Rate	22.69
After-tax Cost of Debt	3.75%
Risk-Free Rate
Market Risk Premium
Cost of Equity	8.436
Total Debt	1,069.78
Total Equity	4,470.70
Total Capital	5,540.48
Debt Weighting	19.31
Equity Weighting	80.69
Wacc

Build Up Free Cash Flow

Year A/P	2017 Actual	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Projected	2023 Projected	2024 Projected	2025 Projected	2026 Projected
Revenue	4,569.68	4,643.72	5,829	5,476.49	6,729.76	7,469.73	8,291.06	9,202.69	10,214.57	11,337.71
Operating Cash Flow	174.47	158.68	37	791.20	228.47	384.13	426.36	473.24	525.28	583.04
Capital Expenditure	-213.12	-174.66	-138.84	-187.62	-184.16	-253.51	-281.38	-312.32	-346.67	-384.78
Free Cash Flow	-38.65	-15.98	-101.83	603.59	44.31	130.62	144.98	160.92	178.61	198.25
WACC
PV LFCF						121.47	125.38	129.43	133.60	137.90
SUM PV LFCF										647.78

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	7.53
Free cash flow (t + 1)	202.22
Terminal Value	3,656.74
Present Value of Terminal Value	2,543.58

Intrinsic Value

Enterprise Value	3,191.36
Net Debt	572.04
Equity Value	2,619.32
Shares Outstanding	121.98
Equity Value Per Share	21.47