Commercial Metals Co (CMC) is slightly undervalued and ESAB Corp (ESAB) is slightly overvalued.
Against our estimates of intrinsic value, CMC trades at the wider discount: a margin of safety of +16%, against -13% for ESAB.
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 8.4% (average of 3 methods) values the shares at $60.32; the price of $68.44 is 13% above that value, and 78% of that value comes from beyond year five.
Leak Score 14/100 on 3 of 12 signals
| Metric | CMC | ESAB |
|---|---|---|
| Verdict | Slightly undervalued | Slightly overvalued |
| Price | $65.00 | $68.44 |
| Intrinsic value | $77.55 | $60.32 |
| Margin of safety | +16% | -13% |
| Leak Score | 49/100 (3/12) | 14/100 (3/12) |
| Market cap | $7.2B | $4.3B |
| Revenue growth, 5 years | 7.3% | 7.8% |
| Operating margin | 9.1% | 14.2% |
| Net margin | 6.7% | 5.7% |
| Return on equity | 13.8% | 8.6% |
| Debt to equity | 0.80 | 1.00 |
| P/E | 12.3x | 24.6x |
| Forward P/E | 9.0x | 10.7x |
| P/B | 1.6x | 1.8x |
| Dividend yield | 1.2% | 0.3% |