Discounted Cash Flow (DCF) Analysis Levered
Commercial Metals Company (CMC)
$36.63
-0.39 (-1.05%)
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 | $ 36.63 |
|---|---|
| Beta | 1.185 |
| 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 | 8.382 |
| Total Debt | 1,069.78 |
| Total Equity | 4,468.26 |
| Total Capital | 5,538.04 |
| Debt Weighting | 19.32 |
| Equity Weighting | 80.68 |
| 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 | 105.17 | 108.60 | 112.14 | 115.80 | 119.58 | |||||
| SUM PV LFCF | 648.52 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 7.49 |
| Free cash flow (t + 1) | 202.22 |
| Terminal Value | 3,683.38 |
| Present Value of Terminal Value | 2,566.89 |
Intrinsic Value
| Enterprise Value | 3,215.40 |
|---|---|
| Net Debt | 572.04 |
| Equity Value | 2,643.37 |
| Shares Outstanding | 121.98 |
| Equity Value Per Share | 21.67 |