Stelco Holdings Valuation

Is STLC undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of STLC when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: STLC (CA$44.02) is trading below our estimate of fair value (CA$57.46)

Significantly Below Fair Value: STLC is trading below fair value by more than 20%.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for STLC?

Other financial metrics that can be useful for relative valuation.

STLC key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.9x
Enterprise Value/EBITDA6.9x
PEG Ration/a

Price to Earnings Ratio vs Peers

How does STLC's PE Ratio compare to its peers?

The above table shows the PE ratio for STLC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average23.6x
LIF Labrador Iron Ore Royalty
10x-4.2%CA$1.9b
DRX ADF Group
9.6x17.6%CA$281.4m
TSL Tree Island Steel
12xn/aCA$90.5m
EQX Equinox Gold
63.1x56.7%CA$2.5b
STLC Stelco Holdings
16.3xn/aCA$2.4b

Price-To-Earnings vs Peers: STLC is good value based on its Price-To-Earnings Ratio (16.3x) compared to the peer average (23.6x).


Price to Earnings Ratio vs Industry

How does STLC's PE Ratio compare vs other companies in the CA Metals and Mining Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a21.6%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a21.6%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: STLC is expensive based on its Price-To-Earnings Ratio (16.3x) compared to the Canadian Metals and Mining industry average (13.6x).


Price to Earnings Ratio vs Fair Ratio

What is STLC's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

STLC PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio16.3x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate STLC's Price-To-Earnings Fair Ratio for valuation analysis.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst STLC forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentCA$44.02
CA$52.88
+20.1%
8.0%CA$60.00CA$46.00n/a8
Mar ’25CA$40.17
CA$52.63
+31.0%
8.3%CA$60.00CA$46.00n/a8
Feb ’25CA$42.42
CA$51.31
+21.0%
9.4%CA$58.00CA$46.00n/a8
Jan ’25CA$50.19
CA$51.36
+2.3%
10.5%CA$60.00CA$46.00n/a7
Dec ’24CA$45.15
CA$46.93
+3.9%
10.9%CA$55.00CA$41.00n/a7
Nov ’24CA$38.90
CA$44.07
+13.3%
13.1%CA$55.00CA$37.00n/a7
Oct ’24CA$37.53
CA$44.36
+18.2%
13.0%CA$55.00CA$37.00n/a7
Sep ’24CA$39.36
CA$45.38
+15.3%
12.4%CA$55.00CA$37.00n/a8
Aug ’24CA$46.48
CA$51.94
+11.8%
10.8%CA$62.00CA$46.00n/a8
Jul ’24CA$43.22
CA$51.28
+18.7%
11.0%CA$62.00CA$45.00n/a9
Jun ’24CA$41.27
CA$51.28
+24.3%
11.0%CA$62.00CA$45.00n/a9
May ’24CA$47.59
CA$53.82
+13.1%
11.6%CA$65.00CA$47.00n/a8
Apr ’24CA$52.34
CA$55.07
+5.2%
10.4%CA$65.00CA$48.00n/a8
Mar ’24CA$57.79
CA$54.65
-5.4%
9.3%CA$63.00CA$48.00CA$40.177
Feb ’24CA$52.16
CA$49.35
-5.4%
9.0%CA$59.50CA$43.25CA$42.428
Jan ’24CA$44.29
CA$48.23
+8.9%
15.9%CA$60.00CA$36.00CA$50.198
Dec ’23CA$45.09
CA$47.73
+5.8%
14.7%CA$59.50CA$36.00CA$45.158
Nov ’23CA$35.32
CA$47.03
+33.1%
17.3%CA$59.50CA$32.50CA$38.908
Oct ’23CA$34.41
CA$51.47
+49.6%
19.0%CA$73.00CA$37.00CA$37.539
Sep ’23CA$35.00
CA$51.69
+47.7%
18.2%CA$73.00CA$40.00CA$39.369
Aug ’23CA$36.14
CA$52.24
+44.6%
18.9%CA$75.00CA$39.00CA$46.489
Jul ’23CA$32.18
CA$58.19
+80.8%
15.5%CA$75.00CA$39.00CA$43.2210
Jun ’23CA$42.38
CA$61.21
+44.4%
10.0%CA$75.00CA$54.00CA$41.279
May ’23CA$46.89
CA$61.11
+30.3%
8.7%CA$71.00CA$54.00CA$47.599
Apr ’23CA$51.88
CA$60.00
+15.7%
8.1%CA$71.00CA$54.00CA$52.3410
Mar ’23CA$41.39
CA$48.94
+18.3%
15.8%CA$60.00CA$31.00CA$57.799

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


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