Steel Dynamics, Inc. (STLD) Stock Valuation — PE Analysis
Steel · NASDAQ
Current Price
$250.01
PE Ratio (TTM)
22.6x
Intrinsic Value
$204.6
-22.2% margin of safety
COMPETITIVE MOAT
↑Scale and Operational Efficiency
STLD's extensive network of highly efficient, strategically located mills allows for significant economies of scale. This operational advantage translates into lower production costs compared to smaller competitors.
↑Recycling and Scrap Sourcing Network
The company's robust scrap metal collection and processing infrastructure provides a cost-advantaged and reliable raw material supply. This vertical integration insulates them from volatile raw material markets.
↑Customer Relationships and Product Diversification
STLD has cultivated strong relationships with a diverse customer base across various industries. This diversification reduces reliance on any single market segment, providing stability.
INVESTMENT RISKS
↓Economic Downturns and Demand Fluctuations
Demand for steel is closely tied to macroeconomic conditions, particularly in construction and automotive sectors. A significant economic slowdown could lead to reduced order volumes and lower prices.
↓Regulatory and Trade Policy Changes
Government policies, including tariffs, trade agreements, and environmental regulations, can significantly impact the cost of production and market access for steel producers like STLD.
↓Technological Disruption and Material Substitution
While steel is a foundational material, advancements in alternative materials or manufacturing processes could eventually reduce demand for certain steel products.
Base case
STLD base case PE valuation
At a current price of $250.01, the base case PE valuation puts STLD fair value near $204.6 per share. That figure assumes 1.2% yearly earnings growth, a target PE multiple of 22x, and a 10% discount rate.
Intrinsic Value
$204.6
Margin of safety
-22.2%
Expected annual return
-3.9%
Base case assumptions: 1.2% annual earnings growth, 22x target PE, 10% discount rate, 5 year projection. Data as of 2026-07-30.
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 STLD PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for Steel Dynamics, Inc. respond.
Open PE Calculator for STLDCompany Overview
Steel Dynamics, Inc. is a prominent American steel manufacturer and metal recycling enterprise, conducting its operations through three distinct business divisions. The Steel Operations segment is responsible for producing a broad range of steel products, including hot, cold, and coated rolled steel, various structural shapes like beams, channels, and angles, flat and reinforcing bars, and a diverse selection of rail and engineered steel bar products. This segment also provides specialized processing services for both bar products (such as turning, polishing, and heat treating) and specialty items (including cutting, welding, and galvanizing). Its offerings cater to numerous industries, such as construction, automotive, manufacturing, transportation, heavy and agricultural equipment, and pipe and tube production. Sales are channeled directly to end-users, steel fabricators, and service centers. The Metals Recycling Operations division focuses on acquiring, processing, and reselling ferrous (e.g., heavy melting steel, shredded scrap, cast iron) and nonferrous (e.g., aluminum, copper, stainless steel) scrap metals, transforming them into reusable materials. This division further offers supplementary services including transportation logistics, marketing, brokerage, and scrap management. The Steel Fabrication Operations segment manufactures crucial components for commercial building construction, such as steel joists, girders, trusses, and steel deck products. Established in 1993 and headquartered in Fort Wayne, Indiana, the company also engages in exporting its products internationally.
Financial Metrics — STLD PE Stock Valuation Data
PE Ratio (TTM)
22.6x
PEG Ratio
0.37
Earnings Yield
4.45%
ROE (TTM)
17.6%
Revenue/Share (TTM)
$142.24
Dividend Yield
0.82%
Debt/Equity
0.44x
Frequently Asked Questions
What is the PE ratio of STLD?
The trailing twelve-month PE ratio of STLD reflects how much investors pay per dollar of Steel Dynamics, Inc.'s earnings. This metric is most useful when compared to Steel peers and the company's own historical range.
Is STLD overvalued based on PE ratio?
STLD's PE of 22.6x combined with a PEG ratio of 0.37 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 STLD stock using PE ratio?
To value Steel Dynamics, Inc. using PE: (1) Compare the current PE (22.6x) against the Steel median to assess relative pricing, (2) check the PEG ratio (0.37) 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 STLD?
STLD's PEG ratio is 0.37, calculated by dividing the PE ratio (22.6x) 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 STLD stock valuation?
PE ratio gives a quick relative read — how STLD is priced versus Steel peers. DCF provides an absolute value based on projected free cash flows. For STLD, with a strong ROE of 17.6%, both methods are worth using — PE for a market-relative check, DCF to stress-test whether fundamentals justify the price. 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 STLD 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 STLD with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2026-07-30. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.