As of June 27, 2025, SunCoke Energy Inc's estimated intrinsic value ranges from $7.99 to $39.33 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $15.09 | +88.9% |
| Discounted Cash Flow (5Y) | $13.65 | +70.8% |
| Dividend Discount Model (Multi-Stage) | $7.99 | -0.1% |
| Dividend Discount Model (Stable) | $10.60 | +32.7% |
| Earnings Power Value | $39.33 | +392.3% |
Is SunCoke Energy Inc (SXC) undervalued or overvalued?
With the current market price at $7.99, 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 SunCoke Energy 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 | 0.9 | 1.08 |
| Cost of equity | 8.0% | 10.9% |
| Cost of debt | 4.9% | 5.1% |
| Tax rate | 24.1% | 30.4% |
| Debt/Equity ratio | 0.73 | 0.73 |
| After-tax WACC | 6.2% | 7.8% |
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 | $14 | $1,455M | 71.4% |
| 10-Year Growth | $15 | $1,577M | 54.0% |
| 5-Year EBITDA | $10 | $1,130M | 63.2% |
| 10-Year EBITDA | $12 | $1,340M | 45.9% |
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 | $251M |
| Discount Rate (WACC) | 7.8% - 6.2% |
| Enterprise Value | $3,220M - $4,037M |
| Net Debt | $299M |
| Equity Value | $2,921M - $3,738M |
| Outstanding Shares | 85M |
| Fair Value | $35 - $44 |
| Selected Fair Value | $39.33 |
| Metric | Value |
|---|---|
| Market Capitalization | $676M |
| Enterprise Value | $976M |
| Trailing P/E | 7.26 |
| Forward P/E | 9.20 |
| Trailing EV/EBITDA | 4.85 |
| Current Dividend Yield | 584.01% |
| Dividend Growth Rate (5Y) | 17.24% |
| Debt-to-Equity Ratio | 0.73 |
To determine the most reliable intrinsic value estimate, we weigh each valuation method based on:
| Valuation Method | Weight | Weighted Value |
|---|---|---|
| Discounted Cash Flow (10Y) | 30% | $4.53 |
| Discounted Cash Flow (5Y) | 25% | $3.41 |
| Dividend Discount Model (Multi-Stage) | 20% | $1.60 |
| Dividend Discount Model (Stable) | 15% | $1.59 |
| Earnings Power Value | 10% | $3.93 |
| Weighted Average | 100% | $15.06 |
Based on our comprehensive valuation analysis, SunCoke Energy Inc's weighted average intrinsic value is $15.06, which is approximately 88.5% above the current market price of $7.99.
Key investment considerations:
Given these factors, we believe SunCoke Energy Inc is currently significantly undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.