As of December 15, 2025, MRC Global Inc's estimated intrinsic value ranges from $20.08 to $38.15 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $38.15 | +176.8% |
| Discounted Cash Flow (5Y) | $33.96 | +146.5% |
| Dividend Discount Model (Multi-Stage) | $22.22 | +61.2% |
| Earnings Power Value | $20.08 | +45.7% |
Is MRC Global Inc (MRC) undervalued or overvalued?
With the current market price at $13.78, the stock appears to be significantly undervalued.
Intrinsic value represents the "true" worth of a company based on its fundamentals rather than market sentiment. We've employed multiple methodologies to triangulate MRC Global Inc's intrinsic value, including:
The cost of capital is a critical factor in valuation models, representing the required return for investors.
| WACC Component | Low | High |
|---|---|---|
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 1.21 | 1.31 |
| Cost of equity | 9.4% | 12.2% |
| Cost of debt | 6.1% | 7.1% |
| Tax rate | 16.5% | 25.5% |
| Debt/Equity ratio | 0.34 | 0.34 |
| After-tax WACC | 8.3% | 10.5% |
Our DCF model projects cash flows over 5-year and 10-year horizons, with the following key assumptions:
| DCF Model | Fair Value | Enterprise Value | % from Terminal Value |
|---|---|---|---|
| 5-Year Growth | $34 | $3,266M | 77.3% |
| 10-Year Growth | $38 | $3,621M | 57.6% |
| 5-Year EBITDA | $29 | $2,846M | 74.0% |
| 10-Year EBITDA | $34 | $3,274M | 53.1% |
The DDM values a company based on its expected future dividend payments. We used two approaches:
EPV assesses a company's value based on its current normalized earnings power, assuming no growth.
| EPV Component | Value |
|---|---|
| Normalized Earnings | $194M |
| Discount Rate (WACC) | 10.5% - 8.3% |
| Enterprise Value | $1,850M - $2,319M |
| Net Debt | $376M |
| Equity Value | $1,474M - $1,943M |
| Outstanding Shares | 85M |
| Fair Value | $17 - $23 |
| Selected Fair Value | $20.08 |
| Metric | Value |
|---|---|
| Market Capitalization | $1172M |
| Enterprise Value | $1548M |
| Trailing P/E | 0.00 |
| Forward P/E | 11.15 |
| Trailing EV/EBITDA | 9.30 |
| Current Dividend Yield | 93.82% |
| Dividend Growth Rate (5Y) | -1.06% |
| Debt-to-Equity Ratio | 0.34 |
To determine the most reliable intrinsic value estimate, we weigh each valuation method based on:
| Valuation Method | Weight | Weighted Value |
|---|---|---|
| Discounted Cash Flow (10Y) | 35% | $11.44 |
| Discounted Cash Flow (5Y) | 29% | $8.49 |
| Dividend Discount Model (Multi-Stage) | 24% | $4.44 |
| Earnings Power Value | 12% | $2.01 |
| Weighted Average | 100% | $31.04 |
Based on our comprehensive valuation analysis, MRC Global Inc's intrinsic value is $31.04, which is approximately 125.3% above the current market price of $13.78.
Key investment considerations:
Given these factors, we believe MRC Global Inc is currently significantly undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.