Commercial Metals Stock Current Valuation
| CMC Stock | USD 55.28 0.59 1.06% |
Valuation analysis of Commercial Metals helps investors to measure Commercial Metals' intrinsic value by examining its available valuation indicators, including the cash flow records, the balance sheet account changes and income statement patterns. The current year's Enterprise Value Over EBITDA is expected to grow to 5.97. The current year's Enterprise Value Multiple is expected to grow to 5.97. Fundamental drivers impacting Commercial Metals' valuation include:
Price Book 1.5127 | Enterprise Value 7 B | Enterprise Value Ebitda 5.8353 | Price Sales 0.7599 | Forward PE 10.2249 |
Fairly Valued
Today
Please note that Commercial Metals' price fluctuation is very steady at this time. Calculation of the real value of Commercial Metals is based on 3 months time horizon. Increasing Commercial Metals' time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Commercial Metals is useful when determining the fair value of the Commercial stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Commercial Metals. Since Commercial Metals is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Commercial Stock. However, Commercial Metals' intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 55.28 | Real 56.88 | Target 56.4 | Hype 55.89 |
The real value of Commercial Stock, also known as its intrinsic value, is the underlying worth of Commercial Metals Company, which is reflected in its stock price. It is based on Commercial Metals' financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of Commercial Metals' stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Commercial Metals' stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of Commercial Metals helps investors to forecast how Commercial stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Commercial Metals more accurately as focusing exclusively on Commercial Metals' fundamentals will not take into account other important factors: Commercial Metals Company Current Valuation Analysis
Commercial Metals' Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.
Current Commercial Metals Current Valuation | 6.98 B |
Most of Commercial Metals' fundamental indicators, such as Current Valuation, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, Commercial Metals is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.
Commercial Current Valuation Driver Correlations
Understanding the fundamental principles of building solid financial models for Commercial Metals is extremely important. It helps to project a fair market value of Commercial Stock properly, considering its historical fundamentals such as Current Valuation. Since Commercial Metals' main accounts across its financial reports are all linked and dependent on each other, it is essential to analyze all possible correlations between related accounts. However, instead of reviewing all of Commercial Metals' historical financial statements, investors can examine the correlated drivers to determine its overall health. This can be effectively done using a conventional correlation matrix of Commercial Metals' interrelated accounts and indicators.
Click cells to compare fundamentals
Commercial Current Valuation Historical Pattern
Today, most investors in Commercial Metals Stock are looking for potential investment opportunities by analyzing not only static indicators but also various Commercial Metals' growth ratios. Consistent increases or drops in fundamental ratios usually indicate a possible pattern that can be successfully translated into profits. However, when comparing two companies, knowing each company's current valuation growth rates may not be enough to decide which company is a better investment. That's why investors frequently use a static breakdown of Commercial Metals current valuation as a starting point in their analysis.
Commercial Metals Current Valuation |
| Timeline |
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
| Competition |
In accordance with the recently published financial statements, Commercial Metals has a Current Valuation of 6.98 B. This is 38.86% lower than that of the Metals & Mining sector and 3.88% higher than that of the Materials industry. The current valuation for all United States stocks is 58.04% higher than that of the company.
Commercial Current Valuation Peer Comparison
Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses Commercial Metals' direct or indirect competition against its Current Valuation to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of Commercial Metals could also be used in its relative valuation, which is a method of valuing Commercial Metals by comparing valuation metrics of similar companies.Commercial Metals is currently under evaluation in current valuation category among related companies.
Commercial Metals Current Valuation Drivers
We derive many important indicators used in calculating different scores of Commercial Metals from analyzing Commercial Metals' financial statements. These drivers represent accounts that assess Commercial Metals' ability to generate profits relative to its revenue, operating costs, and shareholders' equity. Below are some of Commercial Metals' important valuation drivers and their relationship over time.
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 (projected) | ||
| Market Cap | 2.5B | 3.9B | 4.9B | 6.6B | 5.9B | 6.2B | |
| Enterprise Value | 3.0B | 4.5B | 5.7B | 7.2B | 6.4B | 6.8B |
Commercial Fundamentals
| Return On Equity | 0.17 | ||||
| Return On Asset | 0.089 | ||||
| Profit Margin | 0.08 % | ||||
| Operating Margin | 0.07 % | ||||
| Current Valuation | 6.98 B | ||||
| Shares Outstanding | 115.71 M | ||||
| Shares Owned By Insiders | 0.73 % | ||||
| Shares Owned By Institutions | 88.91 % | ||||
| Number Of Shares Shorted | 2.42 M | ||||
| Price To Earning | 22.20 X | ||||
| Price To Book | 1.51 X | ||||
| Price To Sales | 0.76 X | ||||
| Revenue | 8.8 B | ||||
| Gross Profit | 1.81 B | ||||
| EBITDA | 1.39 B | ||||
| Net Income | 859.76 M | ||||
| Cash And Equivalents | 592.33 M | ||||
| Cash Per Share | 5.73 X | ||||
| Total Debt | 1.15 B | ||||
| Debt To Equity | 0.50 % | ||||
| Current Ratio | 2.54 X | ||||
| Book Value Per Share | 36.39 X | ||||
| Cash Flow From Operations | 1.34 B | ||||
| Short Ratio | 2.27 X | ||||
| Earnings Per Share | 5.76 X | ||||
| Price To Earnings To Growth | 12.25 X | ||||
| Target Price | 65.5 | ||||
| Number Of Employees | 13.02 K | ||||
| Beta | 1.33 | ||||
| Market Capitalization | 6.45 B | ||||
| Total Asset | 6.64 B | ||||
| Retained Earnings | 4.1 B | ||||
| Working Capital | 2.3 B | ||||
| Current Asset | 2.05 B | ||||
| Current Liabilities | 821.12 M | ||||
| Annual Yield | 0.01 % | ||||
| Five Year Return | 2.18 % | ||||
| Net Asset | 6.64 B | ||||
| Last Dividend Paid | 0.64 |
About Commercial Metals Fundamental Analysis
The Macroaxis Fundamental Analysis modules help investors analyze Commercial Metals's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Commercial Metals using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Commercial Metals based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
Pair Trading with Commercial Metals
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Commercial Metals position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Commercial Metals will appreciate offsetting losses from the drop in the long position's value.Moving together with Commercial Stock
| 0.67 | AA | Alcoa Corp Financial Report 17th of July 2024 | PairCorr |
| 0.85 | KALU | Kaiser Aluminum Earnings Call This Week | PairCorr |
| 0.73 | CENX | Century Aluminum Financial Report 13th of May 2024 | PairCorr |
| 0.87 | CSTM | Constellium Nv Earnings Call This Week | PairCorr |
Moving against Commercial Stock
| 0.73 | NC | NACCO Industries | PairCorr |
| 0.72 | VALE | Vale SA ADR Earnings Call This Week | PairCorr |
| 0.69 | X | United States Steel Earnings Call This Week | PairCorr |
The ability to find closely correlated positions to Commercial Metals could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Commercial Metals when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Commercial Metals - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Commercial Metals to buy it.
The correlation of Commercial Metals is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Commercial Metals moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Commercial Metals moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Commercial Metals can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Check out Commercial Metals Piotroski F Score and Commercial Metals Altman Z Score analysis. For information on how to trade Commercial Stock refer to our How to Trade Commercial Stock guide.You can also try the Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Complementary Tools for Commercial Stock analysis
When running Commercial Metals' price analysis, check to measure Commercial Metals' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Commercial Metals is operating at the current time. Most of Commercial Metals' value examination focuses on studying past and present price action to predict the probability of Commercial Metals' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Commercial Metals' price. Additionally, you may evaluate how the addition of Commercial Metals to your portfolios can decrease your overall portfolio volatility.
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Is Commercial Metals' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Commercial Metals. If investors know Commercial will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Commercial Metals listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.52) | Dividend Share 0.64 | Earnings Share 5.76 | Revenue Per Share 71.999 | Quarterly Revenue Growth (0.08) |
The market value of Commercial Metals is measured differently than its book value, which is the value of Commercial that is recorded on the company's balance sheet. Investors also form their own opinion of Commercial Metals' value that differs from its market value or its book value, called intrinsic value, which is Commercial Metals' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Commercial Metals' market value can be influenced by many factors that don't directly affect Commercial Metals' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Commercial Metals' value and its price as these two are different measures arrived at by different means. Investors typically determine if Commercial Metals is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Commercial Metals' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.