Worthington Steel, Inc. (WS) 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

-89.5%

$4.48

vs $42.51 price

Levered DCF

$9.69

After debt service

Piotroski score

3 / 9

Weak

Altman Z-score

1.61

Distress zone

Rating

Overall 2 / 5

Ratios by fiscal year

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

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021
P/E	121.91×	11.12×	10.51×	14.12×	6.83×	7.31×
P/B	1.98×	1.15×	1.65×	1.22×	1.1×	1.89×
P/S	0.62×	0.4×	0.47×	0.35×	0.31×	0.59×
EV / EBITDA	12.61×	6.43×	6.3×	6.45×	4.37×	4.63×
Gross margin	11.7%	12.6%	12.8%	9.3%	9.7%	17.4%
Operating margin	3.1%	4.8%	5.7%	3.3%	5.6%	10.4%
Net margin	0.5%	3.6%	4.5%	2.4%	4.4%	8.0%
Current ratio	1.46×	1.66×	1.62×	2.05×	1.93×	1.86×
Debt / equity	0.33×	0.21×	0.23×	0.08×	0.14×	0.01×
Interest coverage	3.91×	20.7×	32.42×	40.1×	75.53×	0×
Dividend yield	1.5%	2.6%	0.5%	0.0%	0.0%	0.0%
Payout ratio	188.4%	28.8%	5.1%	0.0%	0.0%	0.0%

Key metrics by fiscal year

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021
Return on equity	1.6%	10.3%	15.7%	8.5%	15.9%	25.9%
Return on invested capital	0.7%	8.0%	10.9%	7.2%	11.9%	20.4%
Return on assets	0.8%	5.6%	8.3%	4.9%	8.7%	12.5%
Free cash flow yield	3.8%	8.1%	5.9%	21.6%	0.2%	9.9%
Earnings yield	0.8%	9.0%	9.5%	7.0%	14.4%	13.7%
Enterprise value	$2.4B	$1.4B	$1.8B	$1.3B	$1.4B	$1.2B
Net debt / EBITDA	1.42×	0.86×	0.64×	0.24×	0.42×	-0.03×
Cash conversion cycle (days)	3	54	54	49	58	68