CMC's vertical integration from scrap processing to finished steel products creates cost efficiencies and supply chain control. This allows for better margin management and responsiveness to market demands.

↑Strategic Geographic Footprint

Operating facilities in key North American and European markets provides proximity to customers and reduces transportation costs. This localized presence enhances competitive advantage in regional markets.

↑Recycling Expertise and Infrastructure

CMC's extensive scrap metal processing capabilities provide a cost-advantaged raw material source. This expertise in recycling is crucial for sustainable and economical steel production.

INVESTMENT RISKS

↓Commodity Price Volatility

Steel prices are subject to significant fluctuations based on global supply and demand. This volatility can impact CMC's revenue and profitability unpredictably.

↓Economic Downturn Impact

Demand for steel is closely tied to construction and industrial activity. A broad economic slowdown could significantly reduce CMC's sales volumes and financial performance.

↓Regulatory and Environmental Pressures

The steel industry faces increasing environmental regulations and scrutiny. Compliance costs and potential carbon taxes could negatively affect CMC's operating expenses.

Base case

CMC base case PE valuation

A base case PE valuation for CMC estimates a fair value of about $100.92 per share, against a current price of $77.76. The model assumes 10.2% annual earnings growth, a 17x target PE multiple, and a 10% discount rate.

Intrinsic Value

$100.92

Margin of safety

+22.9%

Expected annual return

+5.4%

Base case assumptions: 10.2% annual earnings growth, 17x target PE, 10% discount rate, 5 year projection. Data as of 2026-06-12.

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 CMC

Or try DCF Valuation for CMC →

Company 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)

17.1x

PEG Ratio

0.03

Earnings Yield

5.86%

ROE (TTM)

11.9%

Revenue/Share (TTM)

$75.58

Dividend Yield

0.95%

Debt/Equity

0.76x

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 17.1x combined with a PEG ratio of 0.03 provides a growth-adjusted perspective. A PEG below 1.0 suggests CMC may be undervalued relative to its 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 (17.1x) against the Steel median to assess relative pricing, (2) check the PEG ratio (0.03) 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 0.03, calculated by dividing the PE ratio (17.1x) by the expected earnings growth rate. A PEG below 1.0 is traditionally considered a sign of undervaluation — the market may not be fully pricing in the growth potential. 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

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P/E and DCF value CMC with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.

Price as of 2026-06-12. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.

This is an estimate, not investment advice.