Steel Dynamics manufactures and sells steel products, processes and sells recycled ferrous and nonferrous metals, and fabricates and sells steel joist and decking products in the United States and internationally. The company was founded in 1993 and is based in Fort Wayne, Indiana.
STLD Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for STLD, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Steel Dynamics Inc ranked in the 12th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. The most interesting components of our discounted cash flow analysis for Steel Dynamics Inc ended up being:
Its compound free cash flow growth rate, as measured over the past 5.5 years, is -0.19% -- higher than only 8.49% of stocks in our DCF forecasting set.
Steel Dynamics Inc's weighted average cost of capital (WACC) is 8%; for context, that number is higher than merely 11.06% of tickers in our DCF set.
The company's cost of debt, derived from its interest coverage, tax rate, and market capitalization, is greater than just 22.7% of stocks in its sector (Basic Materials).
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Steel Dynamics Inc? See CMCL, DD, MOS, TSE, and IPI.
Steel Dynamics (NASDAQ:STLD) is scheduled to be posting its quarterly earnings results after the market closes on Monday, January 25th. Analysts expect Steel Dynamics to post earnings of $0.86 per share for the quarter. Individual interested in listening to the company’s earnings conference call can do so using this link. Steel Dynamics (NASDAQ:STLD) last released […]