Century Aluminum Company

CENX ·Basic Materials, Other Industrial Metals & Mining, United States
Valuation › AI Valuation

AI Valuation

AI-generated fair value estimate for this company.

AI Fair Value $15.93
Market Price $35.62
Overvalued By 123.6%

Method: 10-year unlevered FCF DCF: $151.2M normalized FCF base (TTM, a cyclically strong period for aluminum prices/tariff protection); 2% annual FCF growth yrs 1-5; 2% yrs 6-10; 11% discount rate; 2% terminal growth; $136.6M net debt ($480M debt vs. $343.4M cash); 98.99M shares outstanding.

Reasoning: Century Aluminum is a commodity aluminum producer whose cash flow swings heavily with aluminum prices and U.S. tariff policy (TTM FCF of $151.2M vs. -$106.9M in FY2024); I used the elevated current FCF as the base but applied minimal growth and a high discount rate to reflect that current tariff-driven profitability may not persist through a full commodity cycle.