Steel Dynamics Valuation
| SD5 Stock | EUR 135.12 3.80 2.89% |
At this time, the company appears to be undervalued. Steel Dynamics has a current Real Value of €150.54 per share. The regular price of the company is €135.12. Our model measures the value of Steel Dynamics from inspecting the company fundamentals such as Shares Outstanding of 175.57 M, operating margin of 0.23 %, and Return On Equity of 0.54 as well as reviewing its technical indicators and probability of bankruptcy.
Undervalued
Today
Please note that Steel Dynamics' price fluctuation is very steady at this time. Calculation of the real value of Steel Dynamics is based on 3 months time horizon. Increasing Steel Dynamics' time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
The fair value of the Steel stock is determined by what a typical buyer is willing to pay for full or partial control of Steel Dynamics. Since Steel Dynamics is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Steel Stock. However, Steel Dynamics' intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 135.12 | Real 150.54 | Hype 135.12 | Naive 129.93 |
The real value of Steel Stock, also known as its intrinsic value, is the underlying worth of Steel Dynamics Company, which is reflected in its stock price. It is based on Steel Dynamics' financial performance, growth prospects, management team, or industry conditions. The intrinsic value of Steel Dynamics' stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, or news.
Estimating the potential upside or downside of Steel Dynamics helps investors to forecast how Steel stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Steel Dynamics more accurately as focusing exclusively on Steel Dynamics' fundamentals will not take into account other important factors: Steel Dynamics Total Value Analysis
Steel Dynamics is at this time estimated to have takeover price of 19.08 B with market capitalization of 21.62 B, debt of 3.01 B, and cash on hands of 1.09 B. Please note that takeover price may be misleading and is a subject to mistakes in financial statements. We encourage investors to thoroughly investigate all of the Steel Dynamics fundamentals before making investing decisions based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
19.08 B | 21.62 B | 3.01 B | 1.09 B |
Steel Dynamics Investor Information
About 85.0% of the company shares are owned by institutional investors. The book value of Steel Dynamics was at this time reported as 46.54. The company recorded earning per share (EPS) of 19.71. Steel Dynamics last dividend was issued on the 30th of March 2023. Based on the key indicators related to Steel Dynamics' liquidity, profitability, solvency, and operating efficiency, Steel Dynamics is not in a good financial situation at the moment. It has a very high risk of going through financial straits in December.Steel Dynamics Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Steel Dynamics has an asset utilization ratio of 157.21 percent. This implies that the Company is making €1.57 for each dollar of assets. An increasing asset utilization means that Steel Dynamics is more efficient with each dollar of assets it utilizes for everyday operations.Steel Dynamics Ownership Allocation
Steel Dynamics shows a total of 175.57 Million outstanding shares. The majority of Steel Dynamics outstanding shares are owned by institutional holders. These institutional investors are usually referred to as non-private investors looking to take positions in Steel Dynamics to benefit from reduced commissions. Consequently, institutions are subject to a different set of regulations than regular investors in Steel Dynamics. Please pay attention to any change in the institutional holdings of Steel Dynamics as this could imply that something significant has changed or is about to change at the company. Please note that no matter how many assets the company owns, if the real value of the company is less than the current market value, you may not be able to make money on it.Steel Dynamics Profitability Analysis
The company reported the revenue of 22.26 B. Net Income was 3.86 B with profit before overhead, payroll, taxes, and interest of 6.12 B.Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Steel Dynamics' worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Steel Dynamics and how it compares across the competition.
About Steel Dynamics Valuation
The stock valuation mechanism determines Steel Dynamics' current worth on a weekly basis. Our valuation model uses a comparative analysis of Steel Dynamics. We calculate exposure to Steel Dynamics's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Steel Dynamics's related companies.Steel Dynamics, Inc., together with its subsidiaries, engages in the steel products manufacturing and metals recycling businesses in the United States and internationally. Steel Dynamics, Inc. was founded in 1993 and is headquartered in Fort Wayne, Indiana. STEEL DYNAMIC operates under Steel classification in Germany and is traded on Frankfurt Stock Exchange. It employs 8200 people.
8 Steps to conduct Steel Dynamics' Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Steel Dynamics' potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct Steel Dynamics' valuation analysis, follow these 8 steps:- Gather financial information: Obtain Steel Dynamics' financial statements, including balance sheets, income statements, and cash flow statements.
- Determine Steel Dynamics' revenue streams: Identify Steel Dynamics' primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research Steel Dynamics' industry and market trends, including the size of the market, growth rate, and competition.
- Establish Steel Dynamics' growth potential: Evaluate Steel Dynamics' management, business model, and growth potential.
- Determine Steel Dynamics' financial performance: Analyze its financial statements to assess its historical performance and future potential.
- Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
- Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate Steel Dynamics' estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
Complementary Tools for Steel Stock analysis
When running Steel Dynamics' price analysis, check to measure Steel Dynamics' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Steel Dynamics is operating at the current time. Most of Steel Dynamics' value examination focuses on studying past and present price action to predict the probability of Steel Dynamics' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Steel Dynamics' price. Additionally, you may evaluate how the addition of Steel Dynamics to your portfolios can decrease your overall portfolio volatility.
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