Intrinsic value of Steel Dynamics - STLD

Previous Close

$38.90

  Intrinsic Value

$2.64

stock screener

  Rating & Target

str. sell

-93%

Previous close

$38.90

 
Intrinsic value

$2.64

 
Up/down potential

-93%

 
Rating

str. sell

We calculate the intrinsic value of STLD stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Revenue (in 2016), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 9.3

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
2016(a)
   2017
   2018
   2019
   2020
   2021
   2022
   2023
   2024
   2025
   2026
   2027
   2028
   2029
   2030
   2031
   2032
   2033
   2034
   2035
   2036
   2037
   2038
   2039
   2040
   2041
   2042
   2043
   2044
   2045
   2046

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  2.41
  16.30
  15.17
  14.15
  13.24
  12.41
  11.67
  11.01
  10.40
  9.86
  9.38
  8.94
  8.55
  8.19
  7.87
  7.59
  7.33
  7.09
  6.88
  6.70
  6.53
  6.37
  6.24
  6.11
  6.00
  5.90
  5.81
  5.73
  5.66
  5.59
  5.53
Revenue, $m
  7,777
  9,045
  10,417
  11,891
  13,465
  15,137
  16,903
  18,764
  20,716
  22,760
  24,894
  27,119
  29,437
  31,848
  34,356
  36,962
  39,670
  42,484
  45,408
  48,449
  51,611
  54,901
  58,325
  61,890
  65,604
  69,476
  73,513
  77,725
  82,122
  86,714
  91,511
Variable operating expenses, $m
 
  9,129
  10,508
  11,989
  13,571
  15,251
  17,026
  18,896
  20,858
  22,911
  25,056
  27,254
  29,583
  32,006
  34,526
  37,144
  39,866
  42,694
  45,633
  48,689
  51,866
  55,172
  58,613
  62,196
  65,929
  69,819
  73,877
  78,110
  82,529
  87,143
  91,964
Fixed operating expenses, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total operating expenses, $m
  7,049
  9,129
  10,508
  11,989
  13,571
  15,251
  17,026
  18,896
  20,858
  22,911
  25,056
  27,254
  29,583
  32,006
  34,526
  37,144
  39,866
  42,694
  45,633
  48,689
  51,866
  55,172
  58,613
  62,196
  65,929
  69,819
  73,877
  78,110
  82,529
  87,143
  91,964
Operating income, $m
  728
  -84
  -91
  -98
  -106
  -114
  -123
  -132
  -142
  -152
  -162
  -134
  -146
  -158
  -170
  -183
  -196
  -210
  -225
  -240
  -255
  -272
  -289
  -306
  -325
  -344
  -364
  -384
  -406
  -429
  -453
EBITDA, $m
  1,024
  261
  300
  343
  388
  436
  487
  540
  597
  656
  717
  781
  848
  917
  990
  1,065
  1,143
  1,224
  1,308
  1,395
  1,487
  1,581
  1,680
  1,783
  1,890
  2,001
  2,117
  2,239
  2,365
  2,498
  2,636
Interest expense (income), $m
  151
  144
  178
  216
  256
  300
  345
  394
  445
  498
  554
  613
  674
  737
  804
  872
  944
  1,018
  1,095
  1,175
  1,259
  1,345
  1,435
  1,529
  1,627
  1,729
  1,835
  1,946
  2,061
  2,182
  2,308
Earnings before tax, $m
  564
  -228
  -269
  -314
  -362
  -414
  -468
  -526
  -587
  -650
  -717
  -747
  -819
  -895
  -973
  -1,055
  -1,140
  -1,228
  -1,320
  -1,415
  -1,514
  -1,617
  -1,724
  -1,835
  -1,952
  -2,073
  -2,199
  -2,330
  -2,467
  -2,611
  -2,760
Tax expense, $m
  204
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Net income, $m
  382
  -228
  -269
  -314
  -362
  -414
  -468
  -526
  -587
  -650
  -717
  -747
  -819
  -895
  -973
  -1,055
  -1,140
  -1,228
  -1,320
  -1,415
  -1,514
  -1,617
  -1,724
  -1,835
  -1,952
  -2,073
  -2,199
  -2,330
  -2,467
  -2,611
  -2,760

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  843
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  6,424
  6,493
  7,478
  8,536
  9,666
  10,866
  12,135
  13,470
  14,872
  16,339
  17,871
  19,468
  21,132
  22,863
  24,663
  26,534
  28,478
  30,498
  32,598
  34,780
  37,050
  39,412
  41,870
  44,429
  47,096
  49,875
  52,773
  55,797
  58,954
  62,250
  65,694
Adjusted assets (=assets-cash), $m
  5,581
  6,493
  7,478
  8,536
  9,666
  10,866
  12,135
  13,470
  14,872
  16,339
  17,871
  19,468
  21,132
  22,863
  24,663
  26,534
  28,478
  30,498
  32,598
  34,780
  37,050
  39,412
  41,870
  44,429
  47,096
  49,875
  52,773
  55,797
  58,954
  62,250
  65,694
Revenue / Adjusted assets
  1.393
  1.393
  1.393
  1.393
  1.393
  1.393
  1.393
  1.393
  1.393
  1.393
  1.393
  1.393
  1.393
  1.393
  1.393
  1.393
  1.393
  1.393
  1.393
  1.393
  1.393
  1.393
  1.393
  1.393
  1.393
  1.393
  1.393
  1.393
  1.393
  1.393
  1.393
Average production assets, $m
  3,151
  3,663
  4,219
  4,816
  5,453
  6,130
  6,846
  7,599
  8,390
  9,218
  10,082
  10,983
  11,922
  12,899
  13,914
  14,969
  16,066
  17,206
  18,390
  19,622
  20,902
  22,235
  23,621
  25,065
  26,570
  28,138
  29,773
  31,479
  33,260
  35,119
  37,062
Working capital, $m
  2,217
  1,601
  1,844
  2,105
  2,383
  2,679
  2,992
  3,321
  3,667
  4,028
  4,406
  4,800
  5,210
  5,637
  6,081
  6,542
  7,022
  7,520
  8,037
  8,575
  9,135
  9,717
  10,323
  10,954
  11,612
  12,297
  13,012
  13,757
  14,536
  15,348
  16,198
Total debt, $m
  2,357
  2,925
  3,541
  4,204
  4,911
  5,662
  6,456
  7,292
  8,170
  9,088
  10,047
  11,047
  12,089
  13,172
  14,299
  15,470
  16,687
  17,952
  19,266
  20,633
  22,053
  23,532
  25,070
  26,673
  28,342
  30,082
  31,896
  33,789
  35,765
  37,828
  39,984
Total liabilities, $m
  3,497
  4,065
  4,681
  5,344
  6,051
  6,802
  7,596
  8,432
  9,310
  10,228
  11,187
  12,187
  13,229
  14,312
  15,439
  16,610
  17,827
  19,092
  20,406
  21,773
  23,193
  24,672
  26,210
  27,813
  29,482
  31,222
  33,036
  34,929
  36,905
  38,968
  41,124
Total equity, $m
  2,927
  2,428
  2,797
  3,193
  3,615
  4,064
  4,538
  5,038
  5,562
  6,111
  6,684
  7,281
  7,903
  8,551
  9,224
  9,924
  10,651
  11,406
  12,192
  13,008
  13,857
  14,740
  15,659
  16,616
  17,614
  18,653
  19,737
  20,868
  22,049
  23,281
  24,569
Total liabilities and equity, $m
  6,424
  6,493
  7,478
  8,537
  9,666
  10,866
  12,134
  13,470
  14,872
  16,339
  17,871
  19,468
  21,132
  22,863
  24,663
  26,534
  28,478
  30,498
  32,598
  34,781
  37,050
  39,412
  41,869
  44,429
  47,096
  49,875
  52,773
  55,797
  58,954
  62,249
  65,693
Debt-to-equity ratio
  0.805
  1.200
  1.270
  1.320
  1.360
  1.390
  1.420
  1.450
  1.470
  1.490
  1.500
  1.520
  1.530
  1.540
  1.550
  1.560
  1.570
  1.570
  1.580
  1.590
  1.590
  1.600
  1.600
  1.610
  1.610
  1.610
  1.620
  1.620
  1.620
  1.620
  1.630
Adjusted equity ratio
  0.373
  0.374
  0.374
  0.374
  0.374
  0.374
  0.374
  0.374
  0.374
  0.374
  0.374
  0.374
  0.374
  0.374
  0.374
  0.374
  0.374
  0.374
  0.374
  0.374
  0.374
  0.374
  0.374
  0.374
  0.374
  0.374
  0.374
  0.374
  0.374
  0.374
  0.374

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  382
  -228
  -269
  -314
  -362
  -414
  -468
  -526
  -587
  -650
  -717
  -747
  -819
  -895
  -973
  -1,055
  -1,140
  -1,228
  -1,320
  -1,415
  -1,514
  -1,617
  -1,724
  -1,835
  -1,952
  -2,073
  -2,199
  -2,330
  -2,467
  -2,611
  -2,760
Depreciation, amort., depletion, $m
  296
  345
  391
  441
  494
  550
  610
  673
  738
  807
  879
  915
  994
  1,075
  1,160
  1,247
  1,339
  1,434
  1,533
  1,635
  1,742
  1,853
  1,968
  2,089
  2,214
  2,345
  2,481
  2,623
  2,772
  2,927
  3,089
Funds from operations, $m
  811
  117
  122
  126
  131
  136
  141
  147
  152
  157
  163
  168
  174
  180
  186
  192
  199
  206
  213
  220
  228
  236
  245
  253
  263
  272
  282
  293
  304
  316
  328
Change in working capital, $m
  -42
  224
  243
  261
  279
  296
  313
  329
  346
  362
  378
  394
  410
  427
  444
  461
  479
  498
  518
  538
  560
  582
  606
  631
  657
  685
  715
  746
  778
  813
  849
Cash from operations, $m
  853
  -107
  -121
  -134
  -147
  -159
  -171
  -183
  -194
  -204
  -215
  -226
  -236
  -247
  -258
  -269
  -280
  -292
  -305
  -318
  -332
  -346
  -362
  -378
  -395
  -413
  -432
  -452
  -474
  -497
  -521
Maintenance CAPEX, $m
  0
  -263
  -305
  -352
  -401
  -454
  -511
  -570
  -633
  -699
  -768
  -840
  -915
  -994
  -1,075
  -1,160
  -1,247
  -1,339
  -1,434
  -1,533
  -1,635
  -1,742
  -1,853
  -1,968
  -2,089
  -2,214
  -2,345
  -2,481
  -2,623
  -2,772
  -2,927
New CAPEX, $m
  -198
  -512
  -556
  -597
  -638
  -677
  -716
  -753
  -791
  -828
  -864
  -901
  -939
  -977
  -1,015
  -1,055
  -1,097
  -1,140
  -1,185
  -1,231
  -1,281
  -1,332
  -1,387
  -1,444
  -1,504
  -1,568
  -1,635
  -1,706
  -1,781
  -1,860
  -1,943
Cash from investing activities, $m
  -313
  -775
  -861
  -949
  -1,039
  -1,131
  -1,227
  -1,323
  -1,424
  -1,527
  -1,632
  -1,741
  -1,854
  -1,971
  -2,090
  -2,215
  -2,344
  -2,479
  -2,619
  -2,764
  -2,916
  -3,074
  -3,240
  -3,412
  -3,593
  -3,782
  -3,980
  -4,187
  -4,404
  -4,632
  -4,870
Free cash flow, $m
  540
  -882
  -982
  -1,083
  -1,186
  -1,291
  -1,398
  -1,507
  -1,618
  -1,731
  -1,848
  -1,967
  -2,090
  -2,217
  -2,348
  -2,484
  -2,625
  -2,771
  -2,923
  -3,082
  -3,247
  -3,420
  -3,601
  -3,790
  -3,988
  -4,195
  -4,412
  -4,640
  -4,878
  -5,128
  -5,390
Issuance/(repayment) of debt, $m
  -255
  572
  617
  663
  707
  751
  794
  836
  877
  918
  959
  1,000
  1,042
  1,084
  1,127
  1,171
  1,217
  1,265
  1,314
  1,366
  1,421
  1,478
  1,539
  1,602
  1,669
  1,740
  1,814
  1,893
  1,976
  2,063
  2,156
Issuance/(repurchase) of shares, $m
  -15
  568
  638
  710
  785
  863
  943
  1,025
  1,111
  1,199
  1,290
  1,345
  1,442
  1,542
  1,647
  1,755
  1,867
  1,984
  2,105
  2,231
  2,363
  2,500
  2,643
  2,793
  2,949
  3,112
  3,283
  3,461
  3,648
  3,843
  4,048
Cash from financing (excl. dividends), $m  
  -289
  1,140
  1,255
  1,373
  1,492
  1,614
  1,737
  1,861
  1,988
  2,117
  2,249
  2,345
  2,484
  2,626
  2,774
  2,926
  3,084
  3,249
  3,419
  3,597
  3,784
  3,978
  4,182
  4,395
  4,618
  4,852
  5,097
  5,354
  5,624
  5,906
  6,204
Total cash flow (excl. dividends), $m
  250
  257
  272
  289
  306
  323
  339
  355
  370
  386
  401
  378
  393
  409
  425
  442
  459
  477
  496
  516
  536
  558
  581
  605
  630
  657
  685
  715
  746
  779
  814
Retained Cash Flow (-), $m
  -247
  -568
  -638
  -710
  -785
  -863
  -943
  -1,025
  -1,111
  -1,199
  -1,290
  -1,345
  -1,442
  -1,542
  -1,647
  -1,755
  -1,867
  -1,984
  -2,105
  -2,231
  -2,363
  -2,500
  -2,643
  -2,793
  -2,949
  -3,112
  -3,283
  -3,461
  -3,648
  -3,843
  -4,048
Prev. year cash balance distribution, $m
 
  839
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
 
  529
  -366
  -421
  -479
  -540
  -604
  -671
  -740
  -813
  -889
  -967
  -1,049
  -1,133
  -1,221
  -1,313
  -1,408
  -1,506
  -1,609
  -1,715
  -1,826
  -1,942
  -2,062
  -2,188
  -2,319
  -2,455
  -2,598
  -2,747
  -2,902
  -3,065
  -3,234
Discount rate, %
 
  4.50
  4.73
  4.96
  5.21
  5.47
  5.74
  6.03
  6.33
  6.65
  6.98
  7.33
  7.70
  8.08
  8.49
  8.91
  9.36
  9.82
  10.31
  10.83
  11.37
  11.94
  12.54
  13.16
  13.82
  14.51
  15.24
  16.00
  16.80
  17.64
  18.52
PV of cash for distribution, $m
 
  506
  -333
  -364
  -391
  -414
  -432
  -445
  -453
  -455
  -452
  -444
  -431
  -413
  -391
  -365
  -337
  -306
  -275
  -243
  -212
  -182
  -153
  -127
  -104
  -83
  -65
  -50
  -38
  -28
  -20
Current shareholders' claim on cash, %
  100
  92.1
  85.1
  78.8
  73.2
  68.1
  63.5
  59.3
  55.4
  51.9
  48.7
  45.8
  43.1
  40.6
  38.3
  36.2
  34.2
  32.3
  30.5
  28.8
  27.3
  25.8
  24.5
  23.2
  21.9
  20.8
  19.7
  18.7
  17.7
  16.8
  15.9

Steel Dynamics, Inc. is a steel producing and a metal recycling company. The Company is engaged in the manufacture and sale of steel products, processing and sale of recycled ferrous and nonferrous metals, and fabrication and sale of steel joists and deck products. Its segments include steel operations, metals recycling operations, steel fabrication operations and Other Operations. It offers a range of steel products, such as sheet products, long products and steel finishing. The steel operations segment includes Butler Flat Roll Division, Columbus Flat Roll Division, The Techs galvanizing lines, Structural and Rail Division, Engineered Bar Products Division, Roanoke Bar Division, Steel of West Virginia and Iron Dynamics. The metals recycling operations segment consists of OmniSource Corporation. The fabrication operations produce steel building components. The Other Operations segment consists of subsidiary operations and smaller joint ventures.

FINANCIAL RATIOS  of  Steel Dynamics (STLD)

Valuation Ratios
P/E Ratio 24.8
Price to Sales 1.2
Price to Book 3.2
Price to Tangible Book
Price to Cash Flow 11.1
Price to Free Cash Flow 14.5
Growth Rates
Sales Growth Rate 2.4%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 72.2%
Cap. Spend. - 3 Yr. Gr. Rate 1.1%
Financial Strength
Quick Ratio 211
Current Ratio 0.1
LT Debt to Equity 80.4%
Total Debt to Equity 80.5%
Interest Coverage 5
Management Effectiveness
Return On Assets 7.6%
Ret/ On Assets - 3 Yr. Avg. 3.5%
Return On Total Capital 7.2%
Ret/ On T. Cap. - 3 Yr. Avg. 2.6%
Return On Equity 13.6%
Return On Equity - 3 Yr. Avg. 4.9%
Asset Turnover 1.2
Profitability Ratios
Gross Margin 17.2%
Gross Margin - 3 Yr. Avg. 12.6%
EBITDA Margin 13%
EBITDA Margin - 3 Yr. Avg. 7.3%
Operating Margin 9.4%
Oper. Margin - 3 Yr. Avg. 4%
Pre-Tax Margin 7.3%
Pre-Tax Margin - 3 Yr. Avg. 2%
Net Profit Margin 4.9%
Net Profit Margin - 3 Yr. Avg. 1.7%
Effective Tax Rate 36.2%
Eff/ Tax Rate - 3 Yr. Avg. 40.2%
Payout Ratio 35.6%

STLD stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the STLD stock intrinsic value calculation we used $7777 million for the last fiscal year's total revenue generated by Steel Dynamics. The default revenue input number comes from 2016 income statement of Steel Dynamics. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our STLD stock valuation model: a) initial revenue growth rate of 16.3% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 4.5%, whose default value for STLD is calculated based on our internal credit rating of Steel Dynamics, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of Steel Dynamics.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of STLD stock the variable cost ratio is equal to 101%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $0 million in the base year in the intrinsic value calculation for STLD stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 6.1% for Steel Dynamics.

Corporate tax rate of 27% is the nominal tax rate for Steel Dynamics. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the STLD stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for STLD are equal to 40.5%.

Life of production assets of 12 years is the average useful life of capital assets used in Steel Dynamics operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for STLD is equal to 17.7%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $2927 million for Steel Dynamics - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 239.846 million for Steel Dynamics is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of Steel Dynamics at the current share price and the inputted number of shares is $9.3 billion.

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COMPANY NEWS

▶ US Steel Producers Push for a Price Hike   [Oct-23-17 01:06PM  Market Realist]
▶ Nucors 3Q17 Earnings: Some Key Takeaways   [09:09AM  Market Realist]
▶ Dow Industrials Lead, This Sector Heats Up; The Right Time To Sell GE?   [Oct-20-17 03:35PM  Investor's Business Daily]
▶ Steel Dynamics meets 3Q profit forecasts   [07:02AM  Associated Press]
▶ United Airlines, AmEx, United Rentals Beat Views; Alcoa Misses   [Oct-18-17 06:27PM  Investor's Business Daily]
▶ [$$] Rising concern over weak prices knocks steelmakers   [Oct-16-17 04:26PM  Financial Times]
▶ The Hot Stock: Nucor Gains 3.6%   [Oct-11-17 04:39PM  Barrons.com]
▶ Steel: It's Not That Bad! 2 Stocks To Buy   [10:52AM  Barrons.com]
▶ Why U.S. Steel Corporation Might See Some Bearishness   [Oct-10-17 09:12AM  Market Realist]
▶ A Look at Trends in US Steel Production   [07:41AM  Market Realist]
▶ What US Steel Investors Can Expect in 4Q17   [07:38AM  Market Realist]
▶ 5 Steel Stocks that Thumped the Market in Q3   [Oct-06-17 02:55PM  Zacks]
▶ Lower Scrap Prices Might Please Nucor and Steel Dynamics   [Oct-05-17 01:07PM  Market Realist]
▶ Which Steel Stocks Pay the Highest Dividends?   [09:07AM  Market Realist]
▶ Is Nucor Losing Its Charm?   [Oct-03-17 12:36PM  Market Realist]
▶ A Look at Analysts Top 5 US Steel Producers   [09:08AM  Market Realist]
▶ [$$] 4 Steel Stocks to Play a Q4 Recovery   [10:52AM  Barrons.com]
▶ Analyzing the US Steel Industrys Health before 4Q17   [Sep-21-17 01:30PM  Market Realist]
▶ Steel Dynamics Is Best-In-Class Operator   [Sep-20-17 06:54PM  Morningstar]
▶ Should US Steelmakers Be Asking for More?   [07:39AM  Market Realist]
▶ How Wall Street Is Rating Steel Dynamics this Month   [Sep-18-17 07:37AM  Market Realist]
▶ Steel Maker Cites 'Slow' Trump Help For Earnings Warning   [Sep-15-17 04:00PM  Investor's Business Daily]
▶ Inside AK Steels Price-to-Sales Ratio: What You Need to Know   [Sep-11-17 04:05PM  Market Realist]
▶ [$$] Three Steel Stocks With Support   [11:55AM  Barrons.com]
▶ This Could Drive US Steel Prices Higher (And Benefit CLF)   [Sep-08-17 09:06AM  Market Realist]
▶ U.S. Steel Keeps Both Bulls and Bears Interested   [Sep-06-17 05:36PM  Market Realist]
▶ Could US Steel Bears Be In for a Rough Ride?   [07:37AM  Market Realist]
Financial statements of STLD
Valuation of Stocks

The paper VALUATION OF STOCKS: The Quest for Intrinsic Value provides a detailed description of our valuation model and discloses the calculation algorithm.

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