Steel Dynamics, Inc.

DB:SD5 Stock Report

Market Cap: €16.9b

Steel Dynamics Valuation

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

Valuation Score

6/6

Valuation Score 6/6

  • 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 (€109.78) is trading below our estimate of fair value (€293.37)

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 Ratio9.9x
EarningsUS$1.75b
Market CapUS$17.63b

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 Average25.2x
EIS Eisen- und Hüttenwerke
18.8xn/a€204.2m
HEI Heidelberg Materials
11.5x8.7%€21.3b
SY1 Symrise
36.6x13.7%€14.3b
EVK Evonik Industries
34x32.9%€7.8b
SD5 Steel Dynamics
9.9x-0.07%€17.6b

Price-To-Earnings vs Peers: SD5 is good value based on its Price-To-Earnings Ratio (9.9x) compared to the peer average (25.2x).

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 9.9xIndustry Avg. 11.7xNo. 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 (9.9x) compared to the European Metals and Mining industry average (11.7x).

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 Ratio9.9x
Fair PE Ratio15.2x

Price-To-Earnings vs Fair Ratio: SD5 is good value based on its Price-To-Earnings Ratio (9.9x) compared to the estimated Fair Price-To-Earnings Ratio (15.2x).

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€109.78
€132.74
+20.9%
9.5%€158.33€102.68n/a13
Dec ’25€134.76
€133.01
-1.3%
10.6%€157.21€102.90n/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€66.70€134.7610
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

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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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/30 00:05
End of Day Share Price 2024/12/30 00:00
Earnings2024/09/30
Annual Earnings2023/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Steel Dynamics, Inc. is covered by 40 analysts. 13 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Ishan MajumdarBaptista Research
David GaglianoBarclays
Katja JancicBMO Capital Markets Equity Research