CMC Valuation

Commercial Metals Co

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56.920

0(0.000%)1D

Overview
Forecast
Valuation
Earnings

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 12.01 is considered Fairly compared with the five-year average of 9.45. The fair price of Commercial Metals Co (CMC) is between 38.55 to 63.53 according to relative valuation methord.

Relative Value

Fair Zone

38.55-63.53

Current Price：56.92

Fair

12.01

Trailing

Forward

6.26

EV/EBITDA

Commercial Metals Co. (CMC) has a current EV/EBITDA of 6.26. The 5-year average EV/EBITDA is 5.40. The thresholds are as follows: Strongly Undervalued below 3.28, Undervalued between 3.28 and 4.34, Fairly Valued between 6.45 and 4.34, Overvalued between 6.45 and 7.51, and Strongly Overvalued above 7.51. The current Forward EV/EBITDA of 6.26 falls within the Historic Trend Line -Fairly Valued range.

8.76

EV/EBIT

Commercial Metals Co. (CMC) has a current EV/EBIT of 8.76. The 5-year average EV/EBIT is 7.13. The thresholds are as follows: Strongly Undervalued below 3.35, Undervalued between 3.35 and 5.24, Fairly Valued between 9.02 and 5.24, Overvalued between 9.02 and 10.91, and Strongly Overvalued above 10.91. The current Forward EV/EBIT of 8.76 falls within the Historic Trend Line -Fairly Valued range.

0.75

Commercial Metals Co. (CMC) has a current PS of 0.75. The 5-year average PS is 0.63. The thresholds are as follows: Strongly Undervalued below 0.36, Undervalued between 0.36 and 0.49, Fairly Valued between 0.76 and 0.49, Overvalued between 0.76 and 0.90, and Strongly Overvalued above 0.90. The current Forward PS of 0.75 falls within the Historic Trend Line -Fairly Valued range.

8.94

P/OCF

Commercial Metals Co. (CMC) has a current P/OCF of 8.94. The 5-year average P/OCF is 6.90. The thresholds are as follows: Strongly Undervalued below 4.25, Undervalued between 4.25 and 5.58, Fairly Valued between 8.23 and 5.58, Overvalued between 8.23 and 9.56, and Strongly Overvalued above 9.56. The current Forward P/OCF of 8.94 falls within the Overvalued range.

110.72

P/FCF

Commercial Metals Co. (CMC) has a current P/FCF of 110.72. The 5-year average P/FCF is 23.70. The thresholds are as follows: Strongly Undervalued below -17.71, Undervalued between -17.71 and 3.00, Fairly Valued between 44.41 and 3.00, Overvalued between 44.41 and 65.11, and Strongly Overvalued above 65.11. The current Forward P/FCF of 110.72 falls within the Strongly Overvalued range.

Commercial Metals Co (CMC) has a current Price-to-Book (P/B) ratio of 1.54. Compared to its 3-year average P/B ratio of 1.46 , the current P/B ratio is approximately 5.37% higher. Relative to its 5-year average P/B ratio of 1.52, the current P/B ratio is about 1.49% higher. Commercial Metals Co (CMC) has a Forward Free Cash Flow (FCF) yield of approximately 5.97%. Compared to its 3-year average FCF yield of 9.65%, the current FCF yield is approximately -38.16% lower. Relative to its 5-year average FCF yield of 8.87% , the current FCF yield is about -32.67% lower.

1.54

P/B

Median3y

1.46

Median5y

1.52

5.97

FCF Yield

Median3y

9.65

Median5y

8.87

Competitors Valuation Multiple

The average P/S ratio for CMC's competitors is 0.40, providing a benchmark for relative valuation. Commercial Metals Co Corp (CMC) exhibits a P/S ratio of 0.75, which is 88.26% above the industry average. Given its robust revenue growth of -2.81%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Companhia Siderurgica Nacional SA

Worthington Steel Inc

Performance Decomposition

Market capitalization of CMC increased by 6.57% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 129.74 to 178.69.

The secondary factor is the Revenue Growth, contributed -2.81%to the performance.

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

-2.81%

2.08B → 2.02B

Revenue Growth

-28.35%

5.75 → 4.12

Margin Expansion

37.73%

129.74 → 178.69

P/E Change

6.57%