Current Price
$259.43
PE Ratio (TTM)
20.7x
Intrinsic Value
$210.81
-23.1% margin of safety
COMPETITIVE MOAT
↑Cost Leadership in Scrap Recycling
Nucor's extensive network of scrap processing facilities provides a consistent, low-cost raw material source. This vertical integration offers a significant cost advantage over competitors relying on more expensive virgin materials.
↑Decentralized Production Footprint
Nucor's numerous mini-mills across North America reduce transportation costs and allow for localized production. This agility enables them to serve diverse regional markets efficiently and adapt to demand shifts.
↑Technological Innovation in Steelmaking
The company's continuous investment in advanced steelmaking technologies, particularly in electric arc furnaces (EAFs), enhances efficiency and product quality. This focus on innovation drives operational excellence and cost competitiveness.
INVESTMENT RISKS
↓Cyclicality of Steel Demand
The steel industry is inherently cyclical, tied to broader economic activity and construction/manufacturing cycles. Downturns can lead to reduced demand and pricing pressure, impacting Nucor's profitability.
↓Intense Industry Competition
Nucor faces competition from both domestic and international steel producers. Significant capacity additions or aggressive pricing by rivals can challenge its market share and margins.
↓Environmental Regulations and Compliance
Increasingly stringent environmental regulations regarding emissions and sustainability can lead to higher operating costs. Nucor must invest in compliance, which could impact its cost competitiveness if not managed efficiently.
Base case
NUE base case PE valuation
A base case PE valuation for NUE estimates a fair value of about $210.81 per share, against a current price of $259.43. The model assumes 0.2% annual earnings growth, a 20.52x target PE multiple, and a 10% discount rate.
Intrinsic Value
$210.81
Margin of safety
-23.1%
Expected annual return
-4.1%
Base case assumptions: 0.2% annual earnings growth, 20.52x target PE, 10% discount rate, 5 year projection. Data as of 2026-09-11.
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)
20.7x
PEG Ratio
0.16
Earnings Yield
4.87%
ROE (TTM)
13.5%
Revenue/Share (TTM)
$158.20
Dividend Yield
0.86%
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 20.7x combined with a PEG ratio of 0.16 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 (20.7x) against the Steel median to assess relative pricing, (2) check the PEG ratio (0.16) 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 0.16, calculated by dividing the PE ratio (20.7x) 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 2026-09-11. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.