Nucor Corporation (NUE) Stock Valuation — DCF Analysis
Steel · NYSE
Current Price
$266.35
Intrinsic Value
Outside reliable range
COMPETITIVE MOAT
↑Cost Leadership in Steel Production
Nucor's extensive network of efficient mini-mills and scrap recycling capabilities allows for lower production costs compared to integrated steel mills. This cost advantage is a significant barrier to entry for competitors.
↑Diversified Product Portfolio
The company produces a wide range of steel products for various industries, reducing reliance on any single market segment. This diversification provides resilience against cyclical downturns in specific sectors.
↑Strategic Geographic Footprint
Nucor's numerous production facilities across North America enable efficient logistics and reduced transportation costs for its customers. This localized presence strengthens customer relationships and market penetration.
INVESTMENT RISKS
↓Commodity Price Volatility
Steel prices are inherently cyclical and subject to global supply and demand dynamics. Significant price drops can negatively impact Nucor's profitability and revenue.
↓Intense Industry Competition
The steel industry is highly competitive, with both domestic and international players. Nucor faces constant pressure on pricing and market share from rivals.
↓Regulatory and Environmental Pressures
Increasing environmental regulations and potential carbon taxes could lead to higher operating costs and capital expenditures for Nucor. Compliance with evolving standards presents an ongoing challenge.
Base case
NUE base case valuation
Base case assumptions: 16.1% annual growth, 10.0% discount rate, 30x exit multiple, 5 year projection. Data as of 2026-06-12.
This base case uses default assumptions and is not financial advice. The intrinsic value changes significantly when the growth rate or discount rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the NUE valuation
Adjust the growth rate, discount rate, and exit multiple to see how the intrinsic value and margin of safety for Nucor Corporation respond.
Open DCF Calculator for NUECompany Overview
Nucor Corporation is a prominent producer and distributor of steel and diverse steel-related products. Within its Steel Mills division, the company manufactures a comprehensive range of steel goods. These include various sheet steel types like hot-rolled, cold-rolled, and galvanized, alongside plate steel. It also produces structural components such as wide-flange beams, beam blanks, H-piling, and sheet piling. Furthermore, this segment supplies bar steel products, encompassing blooms, billets, concrete reinforcing bars, merchant bars, and specialized bar quality items. Beyond manufacturing, Nucor's steel mills are involved in steel trading and the distribution of rebar. Its clientele primarily consists of steel service centers, fabricators, and manufacturers across the United States, Canada, and Mexico. The Steel Products segment provides an array of manufactured steel goods, such as hollow structural section tubing, electrical conduits, steel racking, joists and girders, steel decks, and fabricated concrete reinforcing steel. It also supplies cold finished steel, fasteners, complete metal building systems, insulated metal panels, steel grating, expanded metal, and various wire and wire mesh products. These offerings are largely directed towards nonresidential construction projects. Additionally, this segment manages a piling distribution operation. Nucor's Raw Materials division is responsible for producing direct reduced iron (DRI). It also acts as a broker for ferrous and nonferrous metals, pig iron, hot briquetted iron (HBI), and direct reduced iron (DRI). This segment supplies ferro-alloys, processes both ferrous and nonferrous scrap metals, and undertakes natural gas drilling activities. Its ferrous scrap is supplied to electric arc furnace steel mills and foundries for their manufacturing processes. Meanwhile, nonferrous scrap metal is sold to aluminum can manufacturers, secondary aluminum smelters, steel mills, various other processors, and direct consumers of diverse nonferrous metals. The corporation caters to a wide range of industries including agriculture, automotive, construction, energy and transmission, oil and gas, heavy equipment, infrastructure, and transportation. Sales are conducted via an in-house sales team and through the company's internal distribution and trading enterprises. Established in 1958, Nucor Corporation has its headquarters situated in Charlotte, North Carolina.
Financial Metrics — NUE Stock Valuation Data
Revenue/Share (TTM)
$149.24
FCF/Share (TTM)
$2.32
ROIC (TTM)
8.6%
ROE (TTM)
11.2%
P/FCF
114.0x
EV/EBITDA
13.3x
FCF Yield
0.88%
Debt/Equity
0.33x
Based on trailing twelve-month data, NUE shows a free cash flow per share of $2.32 and a ROIC of 8.6%, key inputs for stock valuation using the DCF method. The P/FCF ratio of 114.0x and FCF yield of 0.88% are important context metrics when evaluating NUE's stock valuation relative to peers.
Frequently Asked Questions
What is the intrinsic value of NUE?
Nucor Corporation currently generates $2.32 in free cash flow per share. At the current price of $266.35, a DCF model would discount these cash flows at an appropriate WACC and apply a terminal growth rate to arrive at an intrinsic value. The result depends heavily on your growth and discount rate assumptions — a 1% change in WACC typically shifts the fair value estimate by 10-15%. In MiniValuator the model uses a single discount rate that you can edit directly, 10% by default, rather than a computed WACC.
Is NUE undervalued?
NUE trades at a P/FCF ratio of 114.0x with a free cash flow yield of 0.88%. This elevated P/FCF suggests the market is pricing in significant future growth. However, whether NUE is truly undervalued requires comparing the DCF intrinsic value to the current market price and evaluating whether the margin of safety is sufficient for your risk tolerance.
How do I value NUE stock using DCF?
To perform a DCF valuation on Nucor Corporation: (1) Start with the trailing free cash flow per share ($2.32) as the base, (2) project future FCF growth over 5-10 years based on Steel industry trends and company fundamentals, (3) apply a discount rate (WACC) reflecting NUE's risk profile — with a debt-to-equity of 0.33x, capital structure is an important factor, and (4) add a terminal value for cash flows beyond the projection period.
What is DCF valuation and how does it apply to NUE?
DCF (Discounted Cash Flow) estimates what a company is worth today based on its future cash generation. For Nucor Corporation, this means projecting how much free cash flow the company will produce over the next 5-10 years, shaped by Steel trends, then discounting those amounts to today's dollars. NUE's ROIC of 8.6% shows moderate capital returns.
How does WACC affect NUE stock valuation?
WACC (Weighted Average Cost of Capital) is the discount rate in a DCF model — it reflects the minimum return investors require. For NUE, with a debt-to-equity ratio of 0.33x, the capital structure directly influences WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%. At an EV/EBITDA of 13.3x, the market's implied discount rate can be reverse-engineered for comparison. In MiniValuator you set this discount rate yourself as a single editable number, 10% by default, instead of computing a formal WACC.
Learn More
- See NUE PE Valuation → — Earnings-based stock valuation using PE ratio analysis
- DCF Methodology — Step-by-step guide to discounted cash flow analysis
- PE Methodology — Guide to PE ratio stock valuation
- WACC — Understanding the discount rate used in DCF
- Margin of Safety — How to evaluate downside protection
- Intrinsic Value — How to evaluate stock fair value
- How to Calculate Intrinsic Value — Complete guide for investors
Related Valuations
All Basic Materials valuationsDCF and P/E value NUE with different methods and assumptions, so the two conclusions can differ. Compare the P/E fair value.
Price as of 2026-06-12. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.