Steel Dynamics Valuation
Is STLD * undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score
3/6Valuation Score 3/6
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 STLD * when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: STLD * (MX$3030.67) is trading below our estimate of fair value (MX$5149.98)
Significantly Below Fair Value: STLD * is trading below fair value by more than 20%.
Key Valuation Metric
Which metric is best to use when looking at relative valuation for STLD *?
Key metric: As STLD * is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.
| What is STLD *'s PE Ratio? | |
|---|---|
| PE Ratio | 12.2x |
| Earnings | US$1.75b |
| Market Cap | US$21.35b |
| Key Statistics | |
|---|---|
| Enterprise Value/Revenue | 1.3x |
| Enterprise Value/EBITDA | 8.7x |
| PEG Ratio | 42.4x |
Price to Earnings Ratio vs Peers
How does STLD *'s PE Ratio compare to its peers?
| Company | Forward PE | Estimated Growth | Market Cap |
|---|---|---|---|
| Peer Average | 29.8x | ||
ICH B Industrias CH S. A. B. de C. V | 8.7x | n/a | Mex$73.4b |
GMEXICO B Grupo México. de | 11.1x | 6.1% | Mex$807.1b |
PE&OLES * Industrias Peñoles. de | 72x | n/a | Mex$121.2b |
CEMEX CPO CEMEX. de | 27.3x | 31.1% | Mex$158.4b |
STLD * Steel Dynamics | 12.2x | 0.3% | Mex$21.4b |
Price-To-Earnings vs Peers: STLD * is good value based on its Price-To-Earnings Ratio (12.2x) compared to the peer average (29.6x).
Price to Earnings Ratio vs Industry
How does STLD *'s PE Ratio compare vs other companies in the South American Metals and Mining Industry?
| 1 Company | Price / Earnings | Estimated Growth | Market Cap |
|---|---|---|---|
| 1 Company | Estimated Growth | Market Cap | |
|---|---|---|---|
Price-To-Earnings vs Industry: STLD * is expensive based on its Price-To-Earnings Ratio (12.2x) compared to the South American Metals and Mining industry average (8.5x).
Price to Earnings Ratio vs Fair Ratio
What is STLD *'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.
| Fair Ratio | |
|---|---|
| Current PE Ratio | 12.2x |
| Fair PE Ratio | n/a |
Price-To-Earnings vs Fair Ratio: Insufficient data to calculate STLD *'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?
| Date | Share Price | Average 1Y Price Target | Dispersion | High | Low | 1Y Actual price | Analysts |
|---|---|---|---|---|---|---|---|
| Current | n/a | Mex$2,808.69 0% | 9.7% | Mex$3,238.37 | Mex$2,185.90 | n/a | 12 |
| Nov ’25 | n/a | Mex$2,762.95 0% | 10.2% | Mex$3,204.75 | Mex$2,103.12 | n/a | 12 |
| Oct ’25 | n/a | Mex$2,610.45 0% | 10.9% | Mex$3,138.11 | Mex$2,079.00 | n/a | 12 |
| Sep ’25 | Mex$2,320.00 | Mex$2,461.44 +6.1% | 9.4% | Mex$2,983.26 | Mex$2,088.28 | n/a | 12 |
| Aug ’25 | n/a | Mex$2,388.52 0% | 9.6% | Mex$2,893.06 | Mex$2,025.14 | n/a | 12 |
| Jul ’25 | Mex$2,359.31 | Mex$2,440.60 +3.4% | 9.0% | Mex$2,936.50 | Mex$2,055.55 | n/a | 12 |
| Jun ’25 | n/a | Mex$2,282.37 0% | 14.6% | Mex$2,760.93 | Mex$1,723.49 | n/a | 10 |
| May ’25 | n/a | Mex$2,258.87 0% | 14.8% | Mex$2,825.92 | Mex$1,764.06 | n/a | 11 |
| Apr ’25 | Mex$2,508.27 | Mex$2,080.75 -17.0% | 14.5% | Mex$2,650.26 | Mex$1,656.41 | n/a | 11 |
| Mar ’25 | n/a | Mex$1,939.89 0% | 13.6% | Mex$2,216.05 | Mex$1,278.49 | n/a | 11 |
| Feb ’25 | n/a | Mex$1,944.23 0% | 13.7% | Mex$2,240.69 | Mex$1,292.71 | n/a | 11 |
| Jan ’25 | n/a | Mex$1,915.36 0% | 13.8% | Mex$2,243.62 | Mex$1,294.40 | n/a | 10 |
| Dec ’24 | Mex$2,060.00 | Mex$1,885.95 -8.4% | 14.6% | Mex$2,225.21 | Mex$1,249.54 | n/a | 10 |
| Nov ’24 | n/a | Mex$1,964.89 0% | 14.1% | Mex$2,343.87 | Mex$1,316.18 | n/a | 10 |
| Oct ’24 | n/a | Mex$1,840.03 0% | 14.5% | Mex$2,226.39 | Mex$1,215.95 | n/a | 10 |
| Sep ’24 | Mex$1,703.50 | Mex$1,822.08 +7.0% | 14.1% | Mex$2,211.33 | Mex$1,173.70 | Mex$2,320.00 | 12 |
| Aug ’24 | n/a | Mex$1,781.30 0% | 14.2% | Mex$2,168.58 | Mex$1,151.02 | n/a | 12 |
| Jul ’24 | Mex$1,828.98 | Mex$1,866.88 +2.1% | 16.4% | Mex$2,217.32 | Mex$1,176.88 | Mex$2,359.31 | 13 |
| Jun ’24 | n/a | Mex$1,971.90 0% | 16.8% | Mex$2,337.13 | Mex$1,204.52 | n/a | 13 |
| May ’24 | n/a | Mex$2,087.65 0% | 16.3% | Mex$2,499.62 | Mex$1,204.85 | n/a | 11 |
| Apr ’24 | n/a | Mex$2,137.12 0% | 19.4% | Mex$2,568.22 | Mex$1,155.70 | Mex$2,508.27 | 10 |
| Mar ’24 | n/a | Mex$1,860.98 0% | 22.0% | Mex$2,534.41 | Mex$1,049.97 | n/a | 10 |
| Feb ’24 | Mex$2,307.00 | Mex$1,893.81 -17.9% | 19.9% | Mex$2,271.07 | Mex$1,088.61 | n/a | 10 |
| Jan ’24 | Mex$2,026.00 | Mex$1,877.78 -7.3% | 17.9% | Mex$2,256.90 | Mex$1,108.65 | n/a | 10 |
| Dec ’23 | n/a | Mex$1,791.28 0% | 15.4% | Mex$2,135.95 | Mex$1,145.64 | Mex$2,060.00 | 10 |
| Nov ’23 | Mex$1,911.00 | Mex$1,809.89 -5.3% | 14.5% | Mex$2,191.39 | Mex$1,215.22 | n/a | 10 |
Analyst Forecast: Target price is lower than the current share price.
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