Discounted Cash Flow (DCF) Analysis Levered
Commercial Metals Company (CMC)
$36.65
+2.25 (+6.54%)
All numbers are in Millions, Currency in USD
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 |