As of June 21, 2025, US Concrete Inc's estimated intrinsic value ranges from $9.46 to $62.82 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $17.44 | -76.4% |
| Discounted Cash Flow (5Y) | $14.78 | -80.0% |
| Dividend Discount Model (Multi-Stage) | $9.46 | -87.2% |
| Earnings Power Value | $62.82 | -15.1% |
Is US Concrete Inc (USCR) undervalued or overvalued?
With the current market price at $73.99, the stock appears to be significantly overvalued.
Intrinsic value represents the "true" worth of a company based on its fundamentals rather than market sentiment. We've employed multiple methodologies to triangulate US Concrete 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 | 3.2% | 3.7% |
| Equity market risk premium | 4.2% | 5.2% |
| Adjusted beta | 1.22 | 1.3 |
| Cost of equity | 8.3% | 11.0% |
| Cost of debt | 7.0% | 13.1% |
| Tax rate | 33.8% | 38.2% |
| Debt/Equity ratio | 0.55 | 0.55 |
| After-tax WACC | 7.0% | 10.0% |
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 | $15 | $1,022M | 79.7% |
| 10-Year Growth | $17 | $1,067M | 62.8% |
| 5-Year EBITDA | $11 | $955M | 78.2% |
| 10-Year EBITDA | $17 | $1,068M | 62.8% |
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 | $152M |
| Discount Rate (WACC) | 10.0% - 7.0% |
| Enterprise Value | $1,526M - $2,164M |
| Net Debt | $768M |
| Equity Value | $758M - $1,396M |
| Outstanding Shares | 17M |
| Fair Value | $44 - $81 |
| Selected Fair Value | $62.82 |
| Metric | Value |
|---|---|
| Market Capitalization | $1268M |
| Enterprise Value | $2036M |
| Trailing P/E | 0.00 |
| Forward P/E | 97.50 |
| Trailing EV/EBITDA | 9.35 |
| Current Dividend Yield | 0.00% |
| Dividend Growth Rate (5Y) | 0.00% |
| Debt-to-Equity Ratio | 0.55 |
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% | $5.23 |
| Discounted Cash Flow (5Y) | 29% | $3.69 |
| Dividend Discount Model (Multi-Stage) | 24% | $1.89 |
| Earnings Power Value | 12% | $6.28 |
| Weighted Average | 100% | $20.12 |
Based on our comprehensive valuation analysis, US Concrete Inc's weighted average intrinsic value is $20.12, which is approximately 72.8% below the current market price of $73.99.
Key investment considerations:
Given these factors, we believe US Concrete Inc is currently significantly overvalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.