Steel Dynamics, Inc. (STLD) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-62.4%

$95.38

vs $253.82 price

Levered DCF

$60.96

After debt service

Piotroski score

7 / 9

Strong

Altman Z-score

6.14

Safe zone

Rating

B+

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	21.13×	11.53×	8.02×	4.64×	3.96×	14.13×	11.12×	5.58×
P/B	2.8×	1.98×	2.22×	2.2×	2.02×	1.79×	1.83×	1.79×
P/S	1.38×	1.01×	1.05×	0.8×	0.69×	0.81×	0.71×	0.59×
EV / EBITDA	13.47×	8.13×	5.72×	3.52×	3.16×	8.45×	6.67×	4.16×
Gross margin	13.0%	16.0%	21.5%	27.5%	29.1%	14.9%	14.6%	19.6%
Operating margin	8.1%	11.1%	16.8%	22.9%	23.4%	8.8%	9.4%	14.6%
Net margin	6.5%	8.8%	13.0%	17.4%	17.5%	5.7%	6.4%	10.6%
Current ratio	3.06×	2.53×	2.91×	3.76×	3.1×	3.38×	4.22×	3.96×
Debt / equity	0.47×	0.37×	0.35×	0.38×	0.49×	0.71×	0.67×	0.6×
Interest coverage	21.07×	34.48×	41.2×	55.63×	75.18×	8.93×	7.76×	13.6×
Dividend yield	1.2%	1.6%	1.4%	1.3%	1.7%	2.7%	2.7%	2.4%
Payout ratio	24.6%	18.4%	11.1%	6.1%	6.6%	38.0%	29.8%	13.4%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	13.2%	17.2%	27.6%	47.5%	51.0%	12.7%	16.5%	32.0%
Return on invested capital	8.2%	11.5%	18.5%	32.3%	31.9%	8.5%	10.4%	19.9%
Return on assets	7.2%	10.3%	16.4%	27.3%	25.6%	5.9%	8.1%	16.3%
Free cash flow yield	2.0%	-0.1%	9.5%	19.8%	9.4%	-2.7%	12.6%	16.7%
Earnings yield	4.7%	8.7%	12.5%	21.6%	25.2%	7.1%	9.0%	17.9%
Enterprise value	$28.5B	$20.5B	$21.3B	$19.4B	$14.6B	$9.5B	$8.8B	$8.6B
Net debt / EBITDA	1.63×	1.09×	0.45×	0.26×	0.4×	1.54×	1.02×	0.75×
Cash conversion cycle (days)	92	82	76	81	101	85	77	83