Steel Dynamics, Inc.

DB:SD5 Stock Report

Market Cap: €20.2b

Steel Dynamics Valuation

Is SD5 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • 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 SD5 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: SD5 (€131.56) is trading below our estimate of fair value (€274.62)

Significantly Below Fair Value: SD5 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for SD5?

Key metric: As SD5 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for SD5. This is calculated by dividing SD5's market cap by their current earnings.
What is SD5's PE Ratio?
PE Ratio12.2x
EarningsUS$1.75b
Market CapUS$21.42b

Price to Earnings Ratio vs Peers

How does SD5's PE Ratio compare to its peers?

The above table shows the PE ratio for SD5 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average36x
EIS Eisen- und Hüttenwerke
18.3xn/a€200.6m
HEI Heidelberg Materials
11.4x7.3%€21.1b
SY1 Symrise
37.2x12.6%€14.6b
BAS BASF
76.9x34.2%€38.2b
SD5 Steel Dynamics
12.2x0.3%€21.4b

Price-To-Earnings vs Peers: SD5 is good value based on its Price-To-Earnings Ratio (12.2x) compared to the peer average (36x).

Price to Earnings Ratio vs Industry

How does SD5's PE Ratio compare vs other companies in the European Metals and Mining Industry?

15 CompaniesPrice / EarningsEstimated GrowthMarket Cap
SD5 12.2xIndustry Avg. 12.5xNo. of Companies15PE0816243240+
15 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: SD5 is good value based on its Price-To-Earnings Ratio (12.2x) compared to the European Metals and Mining industry average (12.9x).

Price to Earnings Ratio vs Fair Ratio

What is SD5'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.

SD5 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio12.2x
Fair PE Ratio15.6x

Price-To-Earnings vs Fair Ratio: SD5 is good value based on its Price-To-Earnings Ratio (12.2x) compared to the estimated Fair Price-To-Earnings Ratio (15.6x).

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 SD5 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€131.56
€131.03
-0.4%
9.7%€151.07€101.97n/a12
Nov ’25€118.90
€127.53
+7.3%
10.2%€147.92€97.07n/a12
Oct ’25€112.04
€120.24
+7.3%
10.9%€144.54€95.76n/a12
Sep ’25€106.28
€120.29
+13.2%
9.4%€145.79€102.05n/a12
Aug ’25€122.24
€121.44
-0.7%
9.6%€147.09€102.96n/a12
Jul ’25€119.38
€124.51
+4.3%
9.0%€149.81€104.87n/a12
Jun ’25€122.00
€126.17
+3.4%
14.6%€152.63€95.28n/a10
May ’25€124.90
€123.56
-1.1%
14.8%€154.57€96.49n/a11
Apr ’25€137.72
€116.03
-15.7%
14.5%€147.79€92.37n/a11
Mar ’25€122.68
€105.66
-13.9%
13.6%€120.71€69.64n/a11
Feb ’25€110.72
€103.65
-6.4%
13.7%€119.46€68.92n/a11
Jan ’25€106.50
€102.01
-4.2%
13.8%€119.50€68.94n/a10
Dec ’24€108.06
€100.67
-6.8%
14.6%€118.78€66.70n/a10
Nov ’24€99.70
€102.98
+3.3%
14.1%€122.84€68.98€118.9010
Oct ’24€99.19
€100.55
+1.4%
14.5%€121.67€66.45€112.0410
Sep ’24€98.22
€97.85
-0.4%
14.1%€118.76€63.03€106.2812
Aug ’24€95.96
€96.86
+0.9%
14.2%€117.92€62.59€122.2412
Jul ’24€99.57
€100.05
+0.5%
16.4%€118.83€63.07€119.3813
Jun ’24€86.00
€101.85
+18.4%
16.8%€120.72€62.22€122.0013
May ’24€93.84
€105.68
+12.6%
16.3%€126.53€60.99€124.9011
Apr ’24€101.24
€107.94
+6.6%
19.4%€129.71€58.37€137.7210
Mar ’24€117.56
€96.42
-18.0%
22.0%€131.31€54.40€122.6810
Feb ’24€109.74
€93.02
-15.2%
19.9%€111.55€53.47€110.7210
Jan ’24€91.36
€89.48
-2.1%
17.9%€107.55€52.83€106.5010
Dec ’23€98.52
€89.53
-9.1%
15.4%€106.76€57.26€108.0610
Nov ’23€94.06
€92.11
-2.1%
14.5%€111.53€61.85€99.7010

Analyst Forecast: Target price is lower than the current share price.

Discover undervalued companies

Trinseo

US$120.4m

Operates as a specialty material solutions provider in the United States, Europe, the Asia-Pacific, and internationally.

3XD

US$3.10

7D

-2.5%

1Y

-48.8%

Transcontinental

CA$1.4b

Engages in the flexible packaging business in Canada, the United States, Latin America, the United Kingdom, Australia, and New Zealand.

53L

CA$11.20

7D

-0.9%

1Y

56.6%

Arkema

€5.8b

Manufactures and sells specialty chemicals and advanced materials worldwide.

V1S

€76.05

7D

-0.4%

1Y

-16.4%