Commercial Metals Co (CMC) is slightly undervalued and Carpenter Technology Corp (CRS) is overvalued.
Against our estimates of intrinsic value, CMC trades at the wider discount: a margin of safety of +16%, against -112% for CRS.
Values as of the 22 Sept 2026 close.
Discounting its cash flows at 9.7% (average of 3 methods) values the shares at $77.55; the price of $65.00 is 16% below that value, and 74% of that value comes from beyond year five.
Leak Score 49/100 on 3 of 12 signals
Discounting its cash flows at 10.7% (average of 3 methods) values the shares at $188.36; the price of $400.02 is 112% above that value, and 71% of that value comes from beyond year five.
Leak Score 65/100 on 10 of 12 signals
| Metric | CMC | CRS |
|---|---|---|
| Verdict | Slightly undervalued | Overvalued |
| Price | $65.00 | $400.02 |
| Intrinsic value | $77.55 | $188.36 |
| Margin of safety | +16% | -112% |
| Leak Score | 49/100 (3/12) | 65/100 (10/12) |
| Market cap | $7.2B | $19.8B |
| Revenue growth, 5 years | 7.3% | 16.2% |
| Operating margin | 9.1% | 22.5% |
| Net margin | 6.7% | 16.9% |
| Return on equity | 13.8% | 25.7% |
| Debt to equity | 0.80 | 0.33 |
| P/E | 12.3x | 38.0x |
| Forward P/E | 9.0x | 25.1x |
| P/B | 1.6x | 8.9x |
| Dividend yield | 1.2% | 0.2% |