Commercial Metals Company

AI-generated fair value estimate for this company.

Method: 10-year normalized unlevered FCF DCF: $500M normalized annual FCF base (below TTM $405M, reflecting mid-cycle steel margins once elevated growth capex from the Arizona 2 micro-mill buildout moderates); 5% FCF growth years 1-5 (new-mill ramp contribution); 3% years 6-10; 9% discount rate; 2.5% terminal growth; ~$3.07B net debt; 110.62M shares outstanding.

Reasoning: CMC is a cyclical steel/rebar producer whose TTM FCF is temporarily depressed by elevated growth capex, so a normalized FCF base better reflects steady-state earning power; the 9% discount rate reflects commodity-price cyclicality and recently elevated leverage after total debt rose to roughly $3.6B.