Construction Materials · NYSE
Current Price
$296.08
Intrinsic Value
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Run a full DCF analysis on Vulcan Materials Company with auto-filled fundamentals, adjustable assumptions, and sensitivity heatmap.
Vulcan Materials Company, together with its subsidiaries, produces and supplies construction aggregates primarily in the United States. It operates through four segments: Aggregates, Asphalt, Concrete, and Calcium. The Aggregates segment provides crushed stones, sand and gravel, sand, and other aggregates; and related products and services that are applied in construction and maintenance of highways, streets, and other public works, as well as in the construction of housing and commercial, industrial, and other nonresidential facilities. The Asphalt Mix segment offers asphalt mix in Alabama, Arizona, California, New Mexico, Tennessee, and Texas, as well as engages in the asphalt construction paving activity in Alabama, Tennessee, and Texas. The Concrete segment provides ready-mixed concrete in California, Maryland, New Jersey, New York, Oklahoma, Pennsylvania, Texas and Virginia, and Washington D.C. The Calcium segment mines, produces, and sells calcium products for the animal feed, plastics, and water treatment industries. The company was formerly known as Virginia Holdco, Inc. and changed its name to Vulcan Materials Company. Vulcan Materials Company was founded in 1909 and is headquartered in Birmingham, Alabama.
ROIC (TTM)
8.8%
ROE (TTM)
13.1%
FCF Yield
2.89%
Based on trailing twelve-month data, VMC shows a free cash flow per share of N/A and a ROIC of 8.8%, key inputs for stock valuation using the DCF method. The P/FCF ratio of N/A and FCF yield of 2.89% are important context metrics when evaluating VMC's stock valuation relative to peers.
The intrinsic value of VMC 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 VMC is undervalued depends on comparing the DCF-derived intrinsic value to the current market price of $296.08. 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 Vulcan Materials Company: (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 VMC'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 Vulcan Materials Company, 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. VMC's ROIC of 8.8% shows moderate capital returns.
WACC (Weighted Average Cost of Capital) is the discount rate in a DCF model — it reflects the minimum return investors require. For VMC, the capital structure and equity risk premium determine WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%.
