Current Price
$243.63
PE Ratio (TTM)
19.4x
Intrinsic Value
$206.11
-18.2% margin of safety
COMPETITIVE MOAT
↑Economies of Scale in Production
Nucor's extensive network of mini-mills allows for significant production volume, driving down per-unit costs. This scale provides a cost advantage over smaller competitors.
↑Vertical Integration and Raw Material Control
Nucor's control over its raw material supply chain, particularly through its scrap metal processing, insulates it from price volatility. This integration enhances cost predictability and operational efficiency.
↑Strong Customer Relationships and Diversification
Nucor serves a broad range of industries, fostering long-term relationships built on reliability and product quality. This diversification reduces dependence on any single market segment.
INVESTMENT RISKS
↓Cyclicality of Steel Demand
The steel industry is inherently cyclical, tied to construction and manufacturing activity. Downturns in these sectors can significantly impact Nucor's sales volumes and profitability.
↓Raw Material Price Volatility
While Nucor has some control, significant fluctuations in scrap metal and other input costs can still impact margins. Unexpected spikes can squeeze profitability.
↓Regulatory and Environmental Compliance
Increasingly stringent environmental regulations and trade policies can lead to higher operating costs and potential market access challenges. Compliance requires ongoing investment.
Base case
NUE base case PE valuation
A base case PE valuation for NUE estimates a fair value of about $206.11 per share, against a current price of $243.63. The model assumes 0.8% annual earnings growth, a 19.27x target PE multiple, and a 10% discount rate.
Intrinsic Value
$206.11
Margin of safety
-18.2%
Expected annual return
-3.3%
Base case assumptions: 0.8% annual earnings growth, 19.27x target PE, 10% discount rate, 5 year projection. Data as of 2026-08-21.
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 NUE PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for Nucor Corporation respond.
Open PE 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 PE Stock Valuation Data
PE Ratio (TTM)
19.4x
PEG Ratio
0.15
Earnings Yield
5.19%
ROE (TTM)
13.5%
Revenue/Share (TTM)
$158.20
Dividend Yield
0.92%
Debt/Equity
0.32x
Frequently Asked Questions
What is the PE ratio of NUE?
The trailing twelve-month PE ratio of NUE reflects how much investors pay per dollar of Nucor Corporation's earnings. This metric is most useful when compared to Steel peers and the company's own historical range.
Is NUE overvalued based on PE ratio?
NUE's PE of 19.4x combined with a PEG ratio of 0.15 provides a growth-adjusted perspective. A PEG below 1.0 means the P/E is low relative to the earnings growth rate. 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 NUE stock using PE ratio?
To value Nucor Corporation using PE: (1) Compare the current PE (19.4x) against the Steel median to assess relative pricing, (2) check the PEG ratio (0.15) 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 NUE?
NUE's PEG ratio is 0.15, calculated by dividing the PE ratio (19.4x) by the expected earnings growth rate. A PEG below 1.0 means the P/E is low relative to the expected earnings growth rate. Note that PEG accuracy depends on the reliability of growth estimates.
Should I use PE ratio or DCF for NUE stock valuation?
PE ratio gives a quick relative read — how NUE 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 NUE 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 NUE with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2026-08-21. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.