CMC Relative Valuation
CMC's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, CMC is overvalued; if below, it's undervalued.
Historical Valuation
Commercial Metals Co (CMC) is now in the Fair zone, suggesting that its current forward PE ratio of 10.64 is considered Fairly compared with the five-year average of 9.67. The fair price of Commercial Metals Co (CMC) is between 50.88 to 82.11 according to relative valuation methord.
Relative Value
Fair Zone
50.88-82.11
Current Price：65.23
Fair
10.64
PE
1Y
3Y
5Y
Trailing
Forward
6.59
EV/EBITDA
Commercial Metals Co. (CMC) has a current EV/EBITDA of 6.59. The 5-year average EV/EBITDA is 5.50. The thresholds are as follows: Strongly Undervalued below 3.48, Undervalued between 3.48 and 4.49, Fairly Valued between 6.51 and 4.49, Overvalued between 6.51 and 7.52, and Strongly Overvalued above 7.52. The current Forward EV/EBITDA of 6.59 falls within the Overvalued range.
8.78
EV/EBIT
Commercial Metals Co. (CMC) has a current EV/EBIT of 8.78. The 5-year average EV/EBIT is 7.30. The thresholds are as follows: Strongly Undervalued below 3.58, Undervalued between 3.58 and 5.44, Fairly Valued between 9.16 and 5.44, Overvalued between 9.16 and 11.01, and Strongly Overvalued above 11.01. The current Forward EV/EBIT of 8.78 falls within the Historic Trend Line -Fairly Valued range.
0.78
PS
Commercial Metals Co. (CMC) has a current PS of 0.78. The 5-year average PS is 0.65. The thresholds are as follows: Strongly Undervalued below 0.40, Undervalued between 0.40 and 0.53, Fairly Valued between 0.77 and 0.53, Overvalued between 0.77 and 0.89, and Strongly Overvalued above 0.89. The current Forward PS of 0.78 falls within the Overvalued range.
7.28
P/OCF
Commercial Metals Co. (CMC) has a current P/OCF of 7.28. The 5-year average P/OCF is 6.84. The thresholds are as follows: Strongly Undervalued below 4.34, Undervalued between 4.34 and 5.59, Fairly Valued between 8.08 and 5.59, Overvalued between 8.08 and 9.33, and Strongly Overvalued above 9.33. The current Forward P/OCF of 7.28 falls within the Historic Trend Line -Fairly Valued range.
24.20
P/FCF
Commercial Metals Co. (CMC) has a current P/FCF of 24.20. The 5-year average P/FCF is 22.87. The thresholds are as follows: Strongly Undervalued below -17.80, Undervalued between -17.80 and 2.53, Fairly Valued between 43.20 and 2.53, Overvalued between 43.20 and 63.54, and Strongly Overvalued above 63.54. The current Forward P/FCF of 24.20 falls within the Historic Trend Line -Fairly Valued range.
Commercial Metals Co (CMC) has a current Price-to-Book (P/B) ratio of 1.73. Compared to its 3-year average P/B ratio of 1.47 , the current P/B ratio is approximately 17.74% higher. Relative to its 5-year average P/B ratio of 1.53, the current P/B ratio is about 12.74% higher. Commercial Metals Co (CMC) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 9.68%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 7.74% , the current FCF yield is about -100.00% lower.
1.73
P/B
Median3y
1.47
Median5y
1.53
4.27
FCF Yield
Median3y
9.68
Median5y
7.74
Competitors Valuation Multiple
The average P/S ratio for CMC's competitors is , providing a benchmark for relative valuation. Commercial Metals Co Corp (CMC) exhibits a P/S ratio of , which is NaN% above the industry average. Given its robust revenue growth of 5.93%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of CMC increased by 31.51% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 5.21 to 7.18.
The secondary factor is the Revenue Growth, contributed 5.93%to the performance.
Overall, the performance of CMC in the past 1 year is driven by Margin Expansion. Which is more sustainable.
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FAQ
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