CMC PE Ratio & Valuation,Is CMC Overvalued

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 11.16 is considered Fairly compared with the five-year average of 9.64. The fair price of Commercial Metals Co (CMC) is between 62.75 to 96.12 according to relative valuation methord.

Relative Value

Fair Zone

62.75-96.12

Current Price：73.22

Fair

11.16

7.15

EV/EBITDA

Commercial Metals Co. (CMC) has a current EV/EBITDA of 7.15. The 5-year average EV/EBITDA is 5.52. The thresholds are as follows: Strongly Undervalued below 3.47, Undervalued between 3.47 and 4.49, Fairly Valued between 6.55 and 4.49, Overvalued between 6.55 and 7.57, and Strongly Overvalued above 7.57. The current Forward EV/EBITDA of 7.15 falls within the Overvalued range.

9.53

EV/EBIT

Commercial Metals Co. (CMC) has a current EV/EBIT of 9.53. The 5-year average EV/EBIT is 7.32. The thresholds are as follows: Strongly Undervalued below 3.57, Undervalued between 3.57 and 5.44, Fairly Valued between 9.20 and 5.44, Overvalued between 9.20 and 11.07, and Strongly Overvalued above 11.07. The current Forward EV/EBIT of 9.53 falls within the Overvalued range.

0.85

Commercial Metals Co. (CMC) has a current PS of 0.85. The 5-year average PS is 0.66. The thresholds are as follows: Strongly Undervalued below 0.41, Undervalued between 0.41 and 0.54, Fairly Valued between 0.78 and 0.54, Overvalued between 0.78 and 0.90, and Strongly Overvalued above 0.90. The current Forward PS of 0.85 falls within the Overvalued range.

8.28

P/OCF

Commercial Metals Co. (CMC) has a current P/OCF of 8.28. The 5-year average P/OCF is 6.86. The thresholds are as follows: Strongly Undervalued below 4.35, Undervalued between 4.35 and 5.60, Fairly Valued between 8.12 and 5.60, Overvalued between 8.12 and 9.37, and Strongly Overvalued above 9.37. The current Forward P/OCF of 8.28 falls within the Overvalued range.

21.18

P/FCF

Commercial Metals Co. (CMC) has a current P/FCF of 21.18. The 5-year average P/FCF is 22.82. The thresholds are as follows: Strongly Undervalued below -17.90, Undervalued between -17.90 and 2.46, Fairly Valued between 43.19 and 2.46, Overvalued between 43.19 and 63.55, and Strongly Overvalued above 63.55. The current Forward P/FCF of 21.18 falls within the Historic Trend Line -Fairly Valued range.

Commercial Metals Co (CMC) has a current Price-to-Book (P/B) ratio of 1.90. Compared to its 3-year average P/B ratio of 1.48 , the current P/B ratio is approximately 29.04% higher. Relative to its 5-year average P/B ratio of 1.54, the current P/B ratio is about 23.29% higher. Commercial Metals Co (CMC) has a Forward Free Cash Flow (FCF) yield of approximately 3.92%. Compared to its 3-year average FCF yield of 9.53%, the current FCF yield is approximately -58.90% lower. Relative to its 5-year average FCF yield of 7.48% , the current FCF yield is about -47.62% lower.

1.90

P/B

Median3y

1.48

Median5y

1.54

3.92

FCF Yield

Median3y

9.53

Median5y

7.48

Competitors Valuation Multiple

The average P/S ratio for CMC's competitors is 0.44, providing a benchmark for relative valuation. Commercial Metals Co Corp (CMC) exhibits a P/S ratio of 0.85, which is 91.6% above the industry average. Given its robust revenue growth of 5.93%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of CMC increased by 51.00% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 29.32 to 97.01.

The secondary factor is the Revenue Growth, contributed 11.03%to the performance.

Overall, the performance of CMC in the past 1 year is driven by P/E Change. Which is more unsustainable.

11.03%

1.91B → 2.12B

Revenue Growth

-190.87%

-9.20 → 8.36

Margin Expansion

230.84%

29.32 → 97.01

P/E Change

51.00%

48.49 → 73.22

Mkt Cap Growth

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Frequently Asked Questions

Is Commercial Metals Co (CMC) currently overvalued or undervalued?

What is Commercial Metals Co (CMC) fair value?

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. The fair price of Commercial Metals Co (CMC) is between 62.75 to 96.12 according to relative valuation methord.

How does CMC's valuation metrics compare to the industry average?

The average P/S ratio for CMC's competitors is 0.44, providing a benchmark for relative valuation. Commercial Metals Co Corp (CMC) exhibits a P/S ratio of 0.85, which is 91.60% above the industry average. Given its robust revenue growth of 5.93%, this premium appears unsustainable.

What is the current P/B ratio for Commercial Metals Co (CMC) as of Jan 09 2026?

As of Jan 09 2026, Commercial Metals Co (CMC) has a P/B ratio of 1.90. This indicates that the market values CMC at 1.90 times its book value.

What is the current FCF Yield for Commercial Metals Co (CMC) as of Jan 09 2026?

As of Jan 09 2026, Commercial Metals Co (CMC) has a FCF Yield of 3.92%. This means that for every dollar of Commercial Metals Co’s market capitalization, the company generates 3.92 cents in free cash flow.

What is the current Forward P/E ratio for Commercial Metals Co (CMC) as of Jan 09 2026?

As of Jan 09 2026, Commercial Metals Co (CMC) has a Forward P/E ratio of 11.16. This means the market is willing to pay $11.16 for every dollar of Commercial Metals Co’s expected earnings over the next 12 months.

What is the current Forward P/S ratio for Commercial Metals Co (CMC) as of Jan 09 2026?

As of Jan 09 2026, Commercial Metals Co (CMC) has a Forward P/S ratio of 0.85. This means the market is valuing CMC at $0.85 for every dollar of expected revenue over the next 12 months.

CMC Valuation