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:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Steel Dynamics Inc. To summarize, we found that Steel Dynamics Inc ranked in the 85th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 1058.67%. The most interesting components of our discounted cash flow analysis for Steel Dynamics Inc ended up being:
In the past 5.56 years, Steel Dynamics Inc has a compound free cash flow growth rate of 0.4%; that's better than 73.45% of cash flow producing equities in the Basic Materials sector, where it is classified.
Steel Dynamics Inc's weighted average cost of capital (WACC) is 6%; for context, that number is higher than merely 14.71% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
TG, SID, HCC, OC, and AXTA can be thought of as valuation peers to STLD, in the sense that they are in the Basic Materials sector and have a similar price forecast based on DCF valuation.