Construction Materials · NYSE
Current Price
$612.85
Intrinsic Value
Use the calculator below to estimate
Run a full DCF analysis on Martin Marietta Materials, Inc. with auto-filled fundamentals, adjustable assumptions, and sensitivity heatmap.
Martin Marietta Materials, Inc., a natural resource-based building materials company, supplies aggregates and heavy-side building materials to the construction industry in the United States and internationally. It offers crushed stone, sand, and gravel products; ready mixed concrete and asphalt; paving products and services; and Portland and specialty cement for use in the infrastructure projects, and nonresidential and residential construction markets, as well as in the railroad, agricultural, utility, and environmental industries. The company also produces magnesia-based chemicals products that are used in industrial, agricultural, and environmental applications; and dolomitic lime primarily to customers for steel production and soil stabilization. Its chemical products are used in flame retardants, wastewater treatment, pulp and paper production, and other environmental applications. The company was founded in 1939 and is headquartered in Raleigh, North Carolina.
ROIC (TTM)
6.9%
ROE (TTM)
11.9%
FCF Yield
2.65%
Based on trailing twelve-month data, MLM shows a free cash flow per share of N/A and a ROIC of 6.9%, key inputs for stock valuation using the DCF method. The P/FCF ratio of N/A and FCF yield of 2.65% are important context metrics when evaluating MLM's stock valuation relative to peers.
The intrinsic value of MLM depends on assumptions about future growth rate, discount rate (WACC), and terminal value. A DCF model discounts projected free cash flows back to present value — small changes in WACC can shift the estimate by 20% or more, which is why sensitivity analysis is essential.
Whether MLM is undervalued depends on comparing the DCF-derived intrinsic value to the current market price of $612.85. A positive margin of safety (intrinsic value above market price) suggests potential undervaluation, but the degree of confidence depends on the reliability of your growth and discount rate assumptions.
To perform a DCF valuation on Martin Marietta Materials, Inc.: (1) Start with the trailing free cash flow per share as the base, (2) project future FCF growth over 5-10 years based on Construction Materials industry trends and company fundamentals, (3) apply a discount rate (WACC) reflecting MLM's risk profile, and (4) add a terminal value for cash flows beyond the projection period.
DCF (Discounted Cash Flow) estimates what a company is worth today based on its future cash generation. For Martin Marietta Materials, Inc., this means projecting how much free cash flow the Construction Materials will produce over the next 5-10 years, then discounting those amounts to today's dollars. MLM's ROIC of 6.9% suggests the company may face challenges generating returns above its cost of capital.
WACC (Weighted Average Cost of Capital) is the discount rate in a DCF model — it reflects the minimum return investors require. For MLM, the capital structure and equity risk premium determine WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%.
