Construction Materials · NYSE
Current Price
$52.49
Intrinsic Value
Use the calculator below to estimate
Run a full DCF analysis on Summit Materials, Inc. with auto-filled fundamentals, adjustable assumptions, and sensitivity heatmap.
Summit Materials, Inc., through its subsidiaries, produces and sells construction materials and related downstream products for the public infrastructure, and residential and nonresidential end markets. It operates through three segments: West, East, and Cement. The company's products include aggregates, cement, ready-mix concrete, asphalt paving mixes, and concrete products, as well as plastics components. It also provides asphalt paving and related services to the private and public infrastructure sectors. In addition, the company operates municipal waste, construction, and demolition debris landfills; and liquid asphalt terminals. It has operations in the United States; and in British Columbia, Canada. The company was founded in 2009 and is headquartered in Denver, Colorado.
ROIC (TTM)
4.7%
ROE (TTM)
13.3%
FCF Yield
1.99%
Based on trailing twelve-month data, SUM shows a free cash flow per share of N/A and a ROIC of 4.7%, key inputs for stock valuation using the DCF method. The P/FCF ratio of N/A and FCF yield of 1.99% are important context metrics when evaluating SUM's stock valuation relative to peers.
The intrinsic value of SUM 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 SUM is undervalued depends on comparing the DCF-derived intrinsic value to the current market price of $52.49. 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 Summit 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 SUM'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 Summit 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. SUM's ROIC of 4.7% 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 SUM, the capital structure and equity risk premium determine WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%.
