Commercial Metals Company (CMC) Stock Valuation — PE Analysis
Steel · NYSE
Current Price
$64.16
PE Ratio (TTM)
10.9x
Intrinsic Value
$70.82
+9.4% margin of safety
COMPETITIVE MOAT
↑Integrated Steel Production
CMC's vertically integrated model, from scrap processing to finished steel products, creates operational efficiencies and cost advantages. This integration allows for better control over the supply chain.
↑Strategic Geographic Footprint
A network of strategically located mills and service centers across North America and Europe provides proximity to key customers. This reduces logistics costs and improves delivery times.
↑Scale and Market Position
As a significant player in the steel industry, CMC benefits from economies of scale in purchasing and production. Its established market position provides a degree of pricing power.
INVESTMENT RISKS
↓Intense Industry Competition
The steel sector is highly competitive, with numerous domestic and international players. This can lead to price wars and limit profit margins.
↓Raw Material Cost Fluctuations
The cost of key raw materials, particularly scrap metal, can be volatile. Significant increases can negatively impact CMC's profitability if not passed on to customers.
↓Regulatory and Environmental Factors
The steel industry faces increasing regulatory scrutiny regarding environmental impact and emissions. Compliance costs and potential new regulations pose a risk.
Base case
CMC base case PE valuation
At a current price of $64.16, the base case PE valuation puts CMC fair value near $70.82 per share. That figure assumes 3.1% yearly earnings growth, a target PE multiple of 10.82x, and a 10% discount rate.
Intrinsic Value
$70.82
Margin of safety
+9.4%
Expected annual return
+2.0%
Base case assumptions: 3.1% annual earnings growth, 10.82x target PE, 10% discount rate, 5 year projection. Data as of 2026-10-28.
This base case uses default assumptions and is not financial advice. The fair value changes significantly when the target PE or earnings growth rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the CMC PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for Commercial Metals Company respond.
Open PE Calculator for CMCCompany Overview
Commercial Metals Company (CMC) is an international enterprise specializing in the production, recycling, and fabrication of steel and metal products, along with providing related services. The company serves markets across the United States, Poland, China, and other international regions. A significant facet of its business involves processing and marketing a wide array of ferrous and non-ferrous scrap metals. These raw materials are supplied to a diverse clientele, including steel mills, foundries, aluminum sheet and ingot producers, brass and bronze ingot makers, copper refineries, secondary lead smelters, specialty steel manufacturers, and high-temperature alloy fabricators. Commercial Metals Company manufactures and distributes a comprehensive range of finished long steel products. These encompass reinforcing bars (rebar), merchant bars, light structural sections, and various other specialized profiles. It also provides semi-finished billets intended for re-rolling and forging applications. Specializing in custom-fabricated steel products, the company's offerings are primarily utilized for concrete reinforcement. Such products are integral to the construction of a wide array of structures, from commercial and residential buildings, healthcare facilities, and convention centers to industrial and power plants, highways, bridges, and expansive public venues like arenas, stadiums, and dams. Beyond its fabrication activities, CMC supplies construction-related equipment and products, both for sale and rent, catering to concrete installers and other commercial enterprises. Additionally, the firm produces niche items such as robust strength bars for the truck trailer industry, specialized bar steels engineered for the energy market, and armor plates designated for military vehicles. These diverse metal solutions, including various rebar forms, merchant bars, wire rods, fabricated meshes, and pre-assembled rebar cages, reach a broad customer base encompassing fabricators, manufacturers, distributors, and construction firms. Founded in 1915, Commercial Metals Company maintains its corporate headquarters in Irving, Texas.
Financial Metrics — CMC PE Stock Valuation Data
PE Ratio (TTM)
10.9x
PEG Ratio
0.02
Earnings Yield
9.24%
ROE (TTM)
14.6%
Revenue/Share (TTM)
$84.96
Dividend Yield
1.22%
Debt/Equity
0.72x
Frequently Asked Questions
What is the PE ratio of CMC?
The trailing twelve-month PE ratio of CMC reflects how much investors pay per dollar of Commercial Metals Company's earnings. This metric is most useful when compared to Steel peers and the company's own historical range.
Is CMC overvalued based on PE ratio?
CMC's PE of 10.9x combined with a PEG ratio of 0.02 provides a growth-adjusted perspective. A PEG below 1.0 means the P/E is low relative to the earnings growth rate. Keep in mind that PE-based valuation works best for profitable, mature companies — for high-growth or cyclical Steel, a DCF analysis may be more appropriate.
How do I value CMC stock using PE ratio?
To value Commercial Metals Company using PE: (1) Compare the current PE (10.9x) against the Steel median to assess relative pricing, (2) check the PEG ratio (0.02) to adjust for growth expectations, (3) review the 5-year PE range to identify where the stock sits historically, and (4) estimate fair value by multiplying a target PE by forward EPS estimates. This relative approach complements DCF's absolute valuation.
What is the PEG ratio of CMC?
CMC's PEG ratio is 0.02, calculated by dividing the PE ratio (10.9x) by the expected earnings growth rate. A PEG below 1.0 means the P/E is low relative to the expected earnings growth rate. Note that PEG accuracy depends on the reliability of growth estimates.
Should I use PE ratio or DCF for CMC stock valuation?
PE ratio gives a quick relative read — how CMC is priced versus Steel peers. DCF provides an absolute value based on projected free cash flows. For the most reliable valuation, use PE as a quick comparability screen and DCF for a deeper fundamental analysis. Each method has blind spots: PE ignores capital structure and cash flow quality, while DCF is sensitive to growth and discount rate assumptions.
Learn More
- See CMC DCF Valuation → — Intrinsic value via Discounted Cash Flow analysis
- PE Methodology — Step-by-step guide to PE ratio stock valuation
- DCF Methodology — Guide to discounted cash flow analysis
- PE Ratio — Understanding the price-to-earnings ratio
- Intrinsic Value — How to evaluate stock fair value
Related PE Valuations
All Basic Materials valuationsP/E and DCF value CMC with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2026-10-28. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.