• Wondering if Compass Minerals International at US$28.24 is genuinely good value or just riding a trend? This article breaks down what the current price could mean for you.
• The stock has returned 5.7% over the last 7 days, 23.1% over the last 30 days, 42.2% year to date and 57.2% over the last year. The 3 year and 5 year returns sit at 10.9% and 56.2% declines respectively.
• Recent coverage has focused on Compass Minerals International's position within the broader materials sector and how investors are reacting to its longer term share price record. Together, these updates provide important context for why the stock has recently drawn more attention.
• The company currently holds a 2 out of 6 valuation score. The next sections will walk through the main valuation approaches investors often use, before finishing with a broader framework that can help you assess the stock beyond just the numbers.

Compass Minerals International scores just 2/6 on our valuation checks. See what other red flags we found in the full valuation breakdown.

Approach 1: Compass Minerals International Discounted Cash Flow (DCF) Analysis

A Discounted Cash Flow, or DCF, model takes estimates of the cash Compass Minerals International could generate in the future and discounts those cash flows back to today to arrive at an estimated intrinsic value per share.

For Compass Minerals International, the latest twelve month Free Cash Flow (FCF) is about $58.64 million. Analysts and model assumptions project FCF figures that start at $38.50 million in 2026 and move to $53.01 million by 2035, with Simply Wall St extrapolating the later years beyond the formal analyst window. These projected cash flows in $ are then discounted using a 2 Stage Free Cash Flow to Equity model to reflect the time value of money and risk.

On this basis, the DCF model arrives at an estimated intrinsic value of about $14.18 per share. Compared with the current share price of $28.24, the model output implies the stock is 99.1% overvalued according to this specific approach.

Result: OVERVALUED

Our Discounted Cash Flow (DCF) analysis suggests Compass Minerals International may be overvalued by 99.1%. Discover 51 high quality undervalued stocks or create your own screener to find better value opportunities.

Approach 2: Compass Minerals International Price vs Sales

For companies where earnings can be volatile, the P/S ratio is often a helpful cross check because it compares what you pay for each dollar of revenue rather than profit. Investors usually accept a higher or lower P/S ratio depending on factors like expected growth and risk, so there is no single “correct” number that fits every stock.

Compass Minerals International currently trades on a P/S ratio of 0.92x. That sits below both the Metals and Mining industry average of 2.29x and the broader peer group average of 5.24x, which indicates the stock is priced at a discount to many comparable companies on a pure sales basis.

Simply Wall St also calculates a proprietary Fair Ratio for the stock of 0.71x. This figure aims to capture what a reasonable P/S might look like once earnings growth, profit margins, risk profile, industry and market cap are all considered together, rather than just lining the company up against a blunt industry or peer average. Comparing the current 0.92x P/S with the 0.71x Fair Ratio suggests the shares trade somewhat above what this framework would point to.

Result: OVERVALUED

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Upgrade Your Decision Making: Choose your Compass Minerals International Narrative

Earlier it was mentioned that there is an even better way to think about valuation, and on Simply Wall St this comes through Narratives, where you and other investors connect a clear story about Compass Minerals International to specific forecasts for revenue, earnings, margins and a fair value, then compare that fair value with the current price to help decide whether to act or wait.

Each Narrative on the Community page sets out assumptions, such as the analysts scenario that ties a US$20.00 target to revenue of US$1.3b, earnings of US$76.7 million, a 5.9% profit margin and a 14.4x P/E by 2028. Other investors might build a more cautious view that points to a lower fair value, or a more optimistic case that is closer to the US$25.75 fair value used in a different set of assumptions. The platform then updates these Narratives automatically when new earnings, news or risk factors are added, so you always see how fresh information could shift the story and the valuation you rely on.

Do you think there's more to the story for Compass Minerals International? Head over to our Community to see what others are saying!

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.