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Commercial Metals Company

CMC Industrials Metal Fabrication

Commercial Metals Company’s revenue for fiscal 2026 (year ended August 2026) was $9.4 billion, up 20.5% from fiscal 2025.

Revenue
+25.7%
EPS
+41.2%
Free cash flow
+38.7%
Total debt
+149.6%

Quarter to August 2026, against a year earlier

62.62 0.40 +0.64%
Market cap
$6.8B
P/E
10.6×
Fwd P/E
9.7×
Dividend yield
1.25%
F-score
6/9
Altman Z
2.95
Beneish M
−2.12
Dividend safety
78/100
Overview Business Profile Earnings & Analysis
Financials
Income Statement Balance Sheet Cash Flow Metrics & Ratios
Segments Valuation Filings

Commercial Metals Company (CMC) valuation and DCF model

What the price implies · reverse DCF

At $62.62 the price implies free cash flow after share-based pay growing 6.6% a year for ten years.

Free cash flow after share-based pay grew 7.5% a year over the last five years. The price asks for close to its five-year rate. The industry’s median company is priced for 11.2%.

In August 2020 the price assumed −12.4% a year; Commercial Metals Company went on to grow free cash flow after share-based pay −4.4% a year to FY2026.

Price implies
6.6%
Last 5 years, reported
7.5%
Industry median implies
11.2%

The headline discounts the last twelve months’ free cash flow after share-based pay at 9.0% for ten years and grows it 2.5% a year after that, the same for every company, so the figure compares across the market (how a reverse DCF works).

The other way round · DCF
The price needs
6.6% a year for ten years
$62.62
today’s price
Its base case
7.5% a year for five years, then 4.5%
$59.62
4.8% below today’s price

Both are growth in free cash flow after share-based pay, discounted at 9.0%, with 2.5% a year after year ten.

Base case on its own ten-year record Commercial Metals Company’s own growth, carried forward

Its assumptions

Powerpack lets you start from a scenario and type over any of them.

The base case’s inputs, which Powerpack lets you change
1 · Cash flow to equity
the four quarters to August 2026, from the 10-Q and 10-K filings, before share-based pay

Yearly growth in cash flow. It usually slows as the company matures.

Today’s price implies free cash flow after share-based pay growing 6.6% a year for ten years.

2 · Rates

Cost of equity is the yearly return shareholders require, typically 8–11%. Terminal growth is growth forever after year 10, usually near long-run inflation, 2–3%.

3 · Per share

Diluted shares outstanding. Net debt, under Advanced inputs, is taken off before dividing.

Advanced inputs
Free cash flow Revenue and margin
negative is net cash
new shares the cash flow does not pay for

Against Commercial Metals Company’s own cost of capital: risk-free 4.3% + beta 1.55 × equity premium 4.5% = 11.3% cost of equity; weighted, 11.3%.

Use 11.3%
Equity value $6.67b ▼ below market cap $7.01b
Base case value per share $59.62 equity value ÷ 111.94m shares
Current price $62.62 market price per share
Below today’s price 4.8% downside at the base case’s assumptions

How we got there$3.97b 10 years of cash to equity+$5.30b terminal value−$2.60b net debt=$6.67b equity value÷111.94m shares=$59.62 per share

Valuation against its own history

Today’s multiple against its 5- and 10-year averages and the industry median (Metal Fabrication).

Multiple Current 5Y avg 10Y avg vs 10Y avg Industry median vs industry 10Y range
P/E 10.57× 23.03× 16.47× 36% below 18.21× 42% below
P/FCF 14.14× 13.78× 17.13× 17% below 24.69× 43% below
P/B 1.48× 1.52× 1.49× 1% below 1.75× 15% below
EV/EBITDA 7.51× 7.08× 6.58× 14% above 14.24× 47% below
EV/Sales 1.02× 0.91× 0.76× 34% above 1.83× 44% below
P/E P/FCF P/B EV/EBITDA EV/Sales
8.82×22.95×37.08×51.21×10Y avg 17.13×20202021202220232024202520262026

CMC trades at 14.14× P/FCF, against a 10-year average of 17.13× (range 4.03×–55.50×). That is dearer than 57% of the last 7 year-end readings; re-rating to the average implies $75.86 per share.

Every growth rate on this page is the business’s — its cash flow, FFO or dividend — never its share price’s. A discounted-cash-flow model is only as good as its assumptions. Figures from the 10-K and 10-Q filings. Not investment advice.