Industrial Materials · NYSE
Current Price
$61.30
Intrinsic Value
Use the calculator below to estimate
Run a full DCF analysis on MP Materials Corp. with auto-filled fundamentals, adjustable assumptions, and sensitivity heatmap.
MP Materials Corp. owns and operates rare earth mining and processing facilities. It owns and operates the Mountain Pass Rare Earth mine located in the Western Hemisphere. The company holds the mineral rights to the Mountain Pass mine and surrounding areas, as well as intellectual property rights related to the processing and development of rare earth minerals. It offers cerium, lanthanum, neodymium, praseodymium, and samarium. The company was founded in 2017 and is headquartered in Las Vegas, Nevada.
ROIC (TTM)
-2.8%
ROE (TTM)
-5.0%
FCF Yield
-3.01%
Based on trailing twelve-month data, MP shows a free cash flow per share of N/A and a ROIC of -2.8%, key inputs for stock valuation using the DCF method. The P/FCF ratio of N/A and FCF yield of -3.01% are important context metrics when evaluating MP's stock valuation relative to peers.
The intrinsic value of MP 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 MP is undervalued depends on comparing the DCF-derived intrinsic value to the current market price of $61.30. 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 MP Materials Corp.: (1) Start with the trailing free cash flow per share as the base, (2) project future FCF growth over 5-10 years based on Industrial Materials industry trends and company fundamentals, (3) apply a discount rate (WACC) reflecting MP'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 MP Materials Corp., this means projecting how much free cash flow the Industrial Materials will produce over the next 5-10 years, then discounting those amounts to today's dollars. MP's ROIC of -2.8% 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 MP, the capital structure and equity risk premium determine WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%.
