United States Steel Corporation (X) Stock Valuation — PE Analysis
Steel · NYSE
Current Price
$54.84
PE Ratio (TTM)
32.1x
Intrinsic Value
$38.16
-43.7% margin of safety
COMPETITIVE MOAT
↑Economies of Scale in Production
Large-scale integrated steel mills offer significant cost advantages. This scale allows for lower per-unit production costs, making it difficult for smaller competitors to match pricing.
↑Brand Reputation and Customer Relationships
Decades of operation have built a strong reputation for quality and reliability. Long-standing relationships with key industrial customers create switching costs.
↑Access to Raw Materials and Logistics
Control over or preferential access to iron ore and coal reserves, coupled with established transportation networks, provides a cost and supply chain advantage.
INVESTMENT RISKS
↓Cyclicality of the Steel Industry
Demand for steel is highly tied to economic cycles and capital expenditures in construction and automotive. Downturns can severely impact sales and profitability.
↓Intense Competition and Trade Policies
The industry faces fierce competition from domestic and international players. Shifting trade policies and tariffs can create uncertainty and impact cost structures.
↓Environmental Regulations and Decarbonization Costs
Increasingly stringent environmental regulations and the push for decarbonization require significant capital investment. Failure to adapt could lead to higher operating costs and reputational damage.
Base case
X base case PE valuation
A base case PE valuation for X estimates a fair value of about $38.16 per share, against a current price of $54.84. The model assumes -1.3% annual earnings growth, a 32.07x target PE multiple, and a 10% discount rate.
Intrinsic Value
$38.16
Margin of safety
-43.7%
Expected annual return
-7.0%
Base case assumptions: -1.3% annual earnings growth, 32.07x target PE, 10% discount rate, 5 year projection. Data as of 2025-06-20.
This base case uses default assumptions and is not financial advice. The fair value changes significantly when the target PE or earnings growth rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the X PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for United States Steel Corporation respond.
Open PE Calculator for XCompany Overview
United States Steel Corporation, established in 1901 and based in Pittsburgh, Pennsylvania, is a prominent producer and supplier of flat-rolled and tubular steel goods. The company primarily operates across North America and Europe, organized into four distinct business divisions. The North American Flat-Rolled segment provides various products, including slabs, strip mill plates, sheets, and tin mill items, in addition to raw materials such as iron ore and coke. This division caters to a broad clientele across industries like service centers, conversion operations, transportation, automotive, construction, container manufacturing, appliance production, and electrical applications. The Mini Mill segment specializes in hot-rolled, cold-rolled, and coated sheets, as well as electrical products. Its customer base encompasses the automotive, appliance, construction, container, transportation, and service center markets. Through U. S. Steel Europe (USSE), the company delivers slabs, strip mill plates, sheets, tin mill products, and spiral welded pipes. This European division serves construction, container, appliance and electrical, service centers, conversion, and the crucial oil, gas, and petrochemical sectors. Finally, the Tubular Products division manufactures specialized steel piping, including seamless and electric resistance welded steel casing and tubing products, along with standard, line, and mechanical pipes. These products are predominantly distributed to the oil, gas, and petrochemical industries. Beyond its core steel manufacturing, the corporation also maintains an involvement in the real estate business.
Financial Metrics — X PE Stock Valuation Data
PE Ratio (TTM)
32.1x
PEG Ratio
n/m
Earnings Yield
3.11%
ROE (TTM)
3.4%
Revenue/Share (TTM)
$69.57
Debt/Equity
0.37x
Frequently Asked Questions
What is the PE ratio of X?
The trailing twelve-month PE ratio of X reflects how much investors pay per dollar of United States Steel Corporation's earnings. This metric is most useful when compared to Steel peers and the company's own historical range.
Is X overvalued based on PE ratio?
X's PE of 32.1x combined with a PEG ratio of -0.36 provides a growth-adjusted perspective. X has negative earnings, so its PE and PEG ratios are not meaningful here and cannot tell you whether the stock is over or undervalued. Keep in mind that PE-based valuation works best for profitable, mature companies — for high-growth or cyclical Steel, a DCF analysis may be more appropriate.
How do I value X stock using PE ratio?
To value United States Steel Corporation using PE: (1) Compare the current PE (32.1x) against the Steel median to assess relative pricing, (2) check the PEG ratio (-0.36) to adjust for growth expectations, (3) review the 5-year PE range to identify where the stock sits historically, and (4) estimate fair value by multiplying a target PE by forward EPS estimates. This relative approach complements DCF's absolute valuation.
What is the PEG ratio of X?
X's PEG ratio is -0.36, calculated by dividing the PE ratio (32.1x) by the expected earnings growth rate. Because X has negative earnings, its PEG ratio is not meaningful and should not be read as a sign of under or overvaluation. Note that PEG accuracy depends on the reliability of growth estimates.
Should I use PE ratio or DCF for X stock valuation?
PE ratio gives a quick relative read — how X is priced versus Steel peers. DCF provides an absolute value based on projected free cash flows. For the most reliable valuation, use PE as a quick comparability screen and DCF for a deeper fundamental analysis. Each method has blind spots: PE ignores capital structure and cash flow quality, while DCF is sensitive to growth and discount rate assumptions.
Learn More
- See X DCF Valuation → — Intrinsic value via Discounted Cash Flow analysis
- PE Methodology — Step-by-step guide to PE ratio stock valuation
- DCF Methodology — Guide to discounted cash flow analysis
- PE Ratio — Understanding the price-to-earnings ratio
- Intrinsic Value — How to evaluate stock fair value
Related PE Valuations
All Basic Materials valuationsP/E and DCF value X with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2025-06-20. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.