Intrinsic value of Nucor - NUE

Previous Close

$58.30

  Intrinsic Value

$52.65

stock screener

  Rating & Target

hold

-10%

Previous close

$58.30

 
Intrinsic value

$52.65

 
Up/down potential

-10%

 
Rating

hold

We calculate the intrinsic value of NUE 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 0001), $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 18.4

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
   2
   3
   4
   5
   6
   7
   8
   9
   10
   11
   12
   13
   14
   15
   16
   17
   18
   19
   20
   21
   22
   23
   24
   25
   26
   27
   28
   29
   30
   31

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  24.90
  22.91
  21.12
  19.51
  18.06
  16.75
  15.58
  14.52
  13.57
  12.71
  11.94
  11.24
  10.62
  10.06
  9.55
  9.10
  8.69
  8.32
  7.99
  7.69
  7.42
  7.18
  6.96
  6.76
  6.59
  6.43
  6.29
  6.16
  6.04
  5.94
Revenue, $m
  25,295
  31,090
  37,656
  45,002
  53,128
  62,027
  71,688
  82,096
  93,233
  105,083
  117,629
  130,856
  144,753
  159,313
  174,531
  190,409
  206,950
  224,166
  242,070
  260,681
  280,022
  300,120
  321,007
  342,719
  365,295
  388,779
  413,217
  438,659
  465,161
  492,779
Variable operating expenses, $m
  22,385
  27,442
  33,172
  39,582
  46,672
  54,438
  62,869
  71,951
  81,670
  92,011
  102,647
  114,190
  126,317
  139,023
  152,303
  166,158
  180,593
  195,616
  211,240
  227,480
  244,358
  261,897
  280,124
  299,071
  318,772
  339,264
  360,589
  382,792
  405,918
  430,018
Fixed operating expenses, $m
  401
  409
  418
  428
  437
  447
  457
  467
  477
  487
  498
  509
  520
  532
  543
  555
  567
  580
  593
  606
  619
  633
  647
  661
  675
  690
  705
  721
  737
  753
Total operating expenses, $m
  22,786
  27,851
  33,590
  40,010
  47,109
  54,885
  63,326
  72,418
  82,147
  92,498
  103,145
  114,699
  126,837
  139,555
  152,846
  166,713
  181,160
  196,196
  211,833
  228,086
  244,977
  262,530
  280,771
  299,732
  319,447
  339,954
  361,294
  383,513
  406,655
  430,771
Operating income, $m
  2,510
  3,239
  4,066
  4,993
  6,018
  7,142
  8,363
  9,678
  11,086
  12,585
  14,483
  16,157
  17,916
  19,758
  21,685
  23,695
  25,790
  27,970
  30,237
  32,594
  35,044
  37,590
  40,237
  42,988
  45,849
  48,825
  51,922
  55,147
  58,506
  62,007
EBITDA, $m
  3,564
  4,463
  5,483
  6,625
  7,890
  9,275
  10,779
  12,400
  14,136
  15,982
  17,938
  20,000
  22,167
  24,437
  26,811
  29,287
  31,868
  34,553
  37,347
  40,250
  43,268
  46,405
  49,665
  53,053
  56,577
  60,243
  64,058
  68,030
  72,167
  76,480
Interest expense (income), $m
  183
  205
  300
  410
  534
  673
  827
  996
  1,178
  1,375
  1,586
  1,811
  2,048
  2,298
  2,562
  2,837
  3,125
  3,426
  3,739
  4,065
  4,404
  4,756
  5,122
  5,503
  5,898
  6,309
  6,736
  7,181
  7,643
  8,125
  8,627
Earnings before tax, $m
  2,305
  2,939
  3,656
  4,458
  5,345
  6,315
  7,367
  8,500
  9,711
  10,999
  12,673
  14,109
  15,617
  17,197
  18,848
  20,570
  22,364
  24,231
  26,172
  28,191
  30,288
  32,468
  34,734
  37,090
  39,540
  42,088
  44,741
  47,503
  50,381
  53,380
Tax expense, $m
  622
  794
  987
  1,204
  1,443
  1,705
  1,989
  2,295
  2,622
  2,970
  3,422
  3,809
  4,217
  4,643
  5,089
  5,554
  6,038
  6,542
  7,067
  7,612
  8,178
  8,766
  9,378
  10,014
  10,676
  11,364
  12,080
  12,826
  13,603
  14,413
Net income, $m
  1,683
  2,145
  2,669
  3,255
  3,902
  4,610
  5,378
  6,205
  7,089
  8,029
  9,251
  10,299
  11,400
  12,554
  13,759
  15,016
  16,326
  17,689
  19,106
  20,579
  22,111
  23,702
  25,356
  27,076
  28,864
  30,724
  32,661
  34,677
  36,778
  38,968

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $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 assets, $m
  19,793
  24,327
  29,465
  35,213
  41,571
  48,534
  56,094
  64,238
  72,953
  82,225
  92,041
  102,391
  113,265
  124,658
  136,566
  148,989
  161,933
  175,404
  189,413
  203,975
  219,109
  234,836
  251,179
  268,169
  285,834
  304,209
  323,331
  343,239
  363,975
  385,586
Adjusted assets (=assets-cash), $m
  19,793
  24,327
  29,465
  35,213
  41,571
  48,534
  56,094
  64,238
  72,953
  82,225
  92,041
  102,391
  113,265
  124,658
  136,566
  148,989
  161,933
  175,404
  189,413
  203,975
  219,109
  234,836
  251,179
  268,169
  285,834
  304,209
  323,331
  343,239
  363,975
  385,586
Revenue / Adjusted assets
  1.278
  1.278
  1.278
  1.278
  1.278
  1.278
  1.278
  1.278
  1.278
  1.278
  1.278
  1.278
  1.278
  1.278
  1.278
  1.278
  1.278
  1.278
  1.278
  1.278
  1.278
  1.278
  1.278
  1.278
  1.278
  1.278
  1.278
  1.278
  1.278
  1.278
Average production assets, $m
  8,246
  10,135
  12,276
  14,671
  17,320
  20,221
  23,370
  26,763
  30,394
  34,257
  38,347
  42,659
  47,189
  51,936
  56,897
  62,073
  67,466
  73,078
  78,915
  84,982
  91,287
  97,839
  104,648
  111,727
  119,086
  126,742
  134,709
  143,003
  151,642
  160,646
Working capital, $m
  4,427
  5,441
  6,590
  7,875
  9,297
  10,855
  12,545
  14,367
  16,316
  18,390
  20,585
  22,900
  25,332
  27,880
  30,543
  33,321
  36,216
  39,229
  42,362
  45,619
  49,004
  52,521
  56,176
  59,976
  63,927
  68,036
  72,313
  76,765
  81,403
  86,236
Total debt, $m
  5,560
  7,592
  9,893
  12,468
  15,317
  18,436
  21,823
  25,471
  29,376
  33,529
  37,927
  42,564
  47,436
  52,540
  57,874
  63,440
  69,239
  75,274
  81,550
  88,074
  94,854
  101,899
  109,221
  116,832
  124,746
  132,978
  141,545
  150,464
  159,754
  169,435
Total liabilities, $m
  8,867
  10,899
  13,200
  15,775
  18,624
  21,743
  25,130
  28,779
  32,683
  36,837
  41,234
  45,871
  50,743
  55,847
  61,181
  66,747
  72,546
  78,581
  84,857
  91,381
  98,161
  105,206
  112,528
  120,139
  128,054
  136,286
  144,852
  153,771
  163,061
  172,742
Total equity, $m
  10,926
  13,429
  16,265
  19,437
  22,947
  26,791
  30,964
  35,459
  40,270
  45,388
  50,807
  56,520
  62,522
  68,811
  75,384
  82,242
  89,387
  96,823
  104,556
  112,594
  120,948
  129,629
  138,651
  148,029
  157,780
  167,923
  178,479
  189,468
  200,914
  212,843
Total liabilities and equity, $m
  19,793
  24,328
  29,465
  35,212
  41,571
  48,534
  56,094
  64,238
  72,953
  82,225
  92,041
  102,391
  113,265
  124,658
  136,565
  148,989
  161,933
  175,404
  189,413
  203,975
  219,109
  234,835
  251,179
  268,168
  285,834
  304,209
  323,331
  343,239
  363,975
  385,585
Debt-to-equity ratio
  0.510
  0.570
  0.610
  0.640
  0.670
  0.690
  0.700
  0.720
  0.730
  0.740
  0.750
  0.750
  0.760
  0.760
  0.770
  0.770
  0.770
  0.780
  0.780
  0.780
  0.780
  0.790
  0.790
  0.790
  0.790
  0.790
  0.790
  0.790
  0.800
  0.800
Adjusted equity ratio
  0.552
  0.552
  0.552
  0.552
  0.552
  0.552
  0.552
  0.552
  0.552
  0.552
  0.552
  0.552
  0.552
  0.552
  0.552
  0.552
  0.552
  0.552
  0.552
  0.552
  0.552
  0.552
  0.552
  0.552
  0.552
  0.552
  0.552
  0.552
  0.552
  0.552

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  1,683
  2,145
  2,669
  3,255
  3,902
  4,610
  5,378
  6,205
  7,089
  8,029
  9,251
  10,299
  11,400
  12,554
  13,759
  15,016
  16,326
  17,689
  19,106
  20,579
  22,111
  23,702
  25,356
  27,076
  28,864
  30,724
  32,661
  34,677
  36,778
  38,968
Depreciation, amort., depletion, $m
  1,054
  1,224
  1,417
  1,633
  1,871
  2,133
  2,417
  2,722
  3,049
  3,397
  3,455
  3,843
  4,251
  4,679
  5,126
  5,592
  6,078
  6,584
  7,109
  7,656
  8,224
  8,814
  9,428
  10,065
  10,728
  11,418
  12,136
  12,883
  13,661
  14,473
Funds from operations, $m
  2,737
  3,370
  4,086
  4,887
  5,773
  6,743
  7,794
  8,927
  10,138
  11,426
  12,706
  14,142
  15,652
  17,233
  18,885
  20,608
  22,404
  24,272
  26,215
  28,235
  30,335
  32,516
  34,784
  37,141
  39,592
  42,143
  44,797
  47,560
  50,439
  53,440
Change in working capital, $m
  882
  1,014
  1,149
  1,285
  1,422
  1,557
  1,691
  1,821
  1,949
  2,074
  2,195
  2,315
  2,432
  2,548
  2,663
  2,779
  2,895
  3,013
  3,133
  3,257
  3,385
  3,517
  3,655
  3,800
  3,951
  4,110
  4,277
  4,452
  4,638
  4,833
Cash from operations, $m
  1,854
  2,355
  2,937
  3,602
  4,351
  5,185
  6,104
  7,106
  8,189
  9,353
  10,510
  11,828
  13,220
  14,685
  16,222
  17,830
  19,509
  21,259
  23,082
  24,978
  26,950
  28,999
  31,128
  33,341
  35,642
  38,033
  40,520
  43,108
  45,802
  48,607
Maintenance CAPEX, $m
  -594
  -743
  -913
  -1,106
  -1,322
  -1,560
  -1,822
  -2,105
  -2,411
  -2,738
  -3,086
  -3,455
  -3,843
  -4,251
  -4,679
  -5,126
  -5,592
  -6,078
  -6,584
  -7,109
  -7,656
  -8,224
  -8,814
  -9,428
  -10,065
  -10,728
  -11,418
  -12,136
  -12,883
  -13,661
New CAPEX, $m
  -1,653
  -1,889
  -2,141
  -2,395
  -2,649
  -2,901
  -3,150
  -3,393
  -3,631
  -3,863
  -4,090
  -4,312
  -4,531
  -4,746
  -4,961
  -5,176
  -5,393
  -5,612
  -5,837
  -6,067
  -6,305
  -6,552
  -6,809
  -7,078
  -7,360
  -7,656
  -7,967
  -8,294
  -8,639
  -9,003
Cash from investing activities, $m
  -2,247
  -2,632
  -3,054
  -3,501
  -3,971
  -4,461
  -4,972
  -5,498
  -6,042
  -6,601
  -7,176
  -7,767
  -8,374
  -8,997
  -9,640
  -10,302
  -10,985
  -11,690
  -12,421
  -13,176
  -13,961
  -14,776
  -15,623
  -16,506
  -17,425
  -18,384
  -19,385
  -20,430
  -21,522
  -22,664
Free cash flow, $m
  -393
  -277
  -116
  101
  381
  724
  1,133
  1,607
  2,147
  2,751
  3,334
  4,061
  4,846
  5,687
  6,581
  7,528
  8,524
  9,569
  10,662
  11,802
  12,989
  14,223
  15,505
  16,836
  18,216
  19,649
  21,135
  22,678
  24,279
  25,942
Issuance/(repayment) of debt, $m
  1,765
  2,031
  2,302
  2,575
  2,848
  3,120
  3,387
  3,648
  3,904
  4,154
  4,398
  4,637
  4,872
  5,104
  5,335
  5,566
  5,799
  6,035
  6,276
  6,524
  6,780
  7,045
  7,322
  7,611
  7,914
  8,232
  8,567
  8,919
  9,290
  9,681
Issuance/(repurchase) of shares, $m
  504
  358
  167
  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 from financing (excl. dividends), $m  
  2,269
  2,389
  2,469
  2,575
  2,848
  3,120
  3,387
  3,648
  3,904
  4,154
  4,398
  4,637
  4,872
  5,104
  5,335
  5,566
  5,799
  6,035
  6,276
  6,524
  6,780
  7,045
  7,322
  7,611
  7,914
  8,232
  8,567
  8,919
  9,290
  9,681
Total cash flow (excl. dividends), $m
  1,876
  2,112
  2,352
  2,676
  3,229
  3,843
  4,519
  5,256
  6,051
  6,905
  7,732
  8,698
  9,718
  10,791
  11,916
  13,094
  14,323
  15,604
  16,938
  18,326
  19,769
  21,268
  22,827
  24,447
  26,130
  27,881
  29,702
  31,597
  33,569
  35,624
Retained Cash Flow (-), $m
  -2,187
  -2,503
  -2,836
  -3,173
  -3,510
  -3,844
  -4,173
  -4,495
  -4,811
  -5,118
  -5,419
  -5,713
  -6,003
  -6,289
  -6,573
  -6,858
  -7,145
  -7,436
  -7,733
  -8,038
  -8,354
  -8,681
  -9,022
  -9,378
  -9,751
  -10,143
  -10,555
  -10,989
  -11,447
  -11,929
Prev. year cash balance distribution, $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 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
  -310
  -391
  -484
  -496
  -281
  0
  346
  760
  1,241
  1,787
  2,313
  2,985
  3,715
  4,502
  5,343
  6,236
  7,178
  8,168
  9,205
  10,287
  11,415
  12,587
  13,805
  15,069
  16,379
  17,738
  19,147
  20,607
  22,123
  23,695
Discount rate, %
  4.80
  5.04
  5.29
  5.56
  5.83
  6.13
  6.43
  6.75
  7.09
  7.45
  7.82
  8.21
  8.62
  9.05
  9.50
  9.98
  10.48
  11.00
  11.55
  12.13
  12.74
  13.37
  14.04
  14.74
  15.48
  16.25
  17.07
  17.92
  18.82
  19.76
PV of cash for distribution, $m
  -296
  -354
  -415
  -400
  -211
  0
  224
  451
  670
  871
  1,011
  1,158
  1,268
  1,338
  1,369
  1,361
  1,319
  1,248
  1,153
  1,042
  921
  796
  672
  555
  448
  353
  272
  204
  149
  106
Current shareholders' claim on cash, %
  97.3
  95.9
  95.3
  95.3
  95.3
  95.3
  95.3
  95.3
  95.3
  95.3
  95.3
  95.3
  95.3
  95.3
  95.3
  95.3
  95.3
  95.3
  95.3
  95.3
  95.3
  95.3
  95.3
  95.3
  95.3
  95.3
  95.3
  95.3
  95.3
  95.3

Nucor Corporation (Nucor) manufactures steel and steel products. The Company produces direct reduced iron (DRI) for use in its steel mills. It operates in three segments: steel mills, steel products and raw materials. The steel mills segment produces and distributes sheet steel (hot-rolled, cold-rolled and galvanized), plate steel, structural steel (wide-flange beams, beam blanks, H-piling and sheet piling) and bar steel (blooms, billets, concrete reinforcing bar, merchant bar, wire rod and special bar quality). The steel products segment produces steel joists and joist girders, steel deck, fabricated concrete reinforcing steel and cold finished steel. The raw materials produces DRI; brokers ferrous and nonferrous metals, pig iron, HBI and DRI; supplies ferro-alloys, and processes ferrous and nonferrous scrap metal. It also processes ferrous and nonferrous metals and brokers ferrous and nonferrous metals, pig iron, hot briquetted iron (HBI) and DRI.

FINANCIAL RATIOS  of  Nucor (NUE)

Valuation Ratios
P/E Ratio 23.3
Price to Sales 1.1
Price to Book 2.4
Price to Tangible Book
Price to Cash Flow 10.7
Price to Free Cash Flow 16.4
Growth Rates
Sales Growth Rate -1.4%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 61.8%
Cap. Spend. - 3 Yr. Gr. Rate -12.8%
Financial Strength
Quick Ratio 4
Current Ratio 0.1
LT Debt to Equity 47.4%
Total Debt to Equity 55.3%
Interest Coverage 8
Management Effectiveness
Return On Assets 6.2%
Ret/ On Assets - 3 Yr. Avg. 4.3%
Return On Total Capital 6.6%
Ret/ On T. Cap. - 3 Yr. Avg. 4.3%
Return On Equity 10.4%
Return On Equity - 3 Yr. Avg. 6.7%
Asset Turnover 1.1
Profitability Ratios
Gross Margin 12.6%
Gross Margin - 3 Yr. Avg. 9.4%
EBITDA Margin 13.4%
EBITDA Margin - 3 Yr. Avg. 10%
Operating Margin 8.9%
Oper. Margin - 3 Yr. Avg. 5.9%
Pre-Tax Margin 8%
Pre-Tax Margin - 3 Yr. Avg. 5%
Net Profit Margin 4.9%
Net Profit Margin - 3 Yr. Avg. 2.9%
Effective Tax Rate 30.7%
Eff/ Tax Rate - 3 Yr. Avg. 27.7%
Payout Ratio 60.4%

NUE stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the NUE stock intrinsic value calculation we used $20252.393 million for the last fiscal year's total revenue generated by Nucor. The default revenue input number comes from 0001 income statement of Nucor. 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 NUE stock valuation model: a) initial revenue growth rate of 24.9% 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 4.8%, whose default value for NUE is calculated based on our internal credit rating of Nucor, 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 Nucor.
    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 NUE stock the variable cost ratio is equal to 88.8%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $392 million in the base year in the intrinsic value calculation for NUE 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 5.4% for Nucor.

Corporate tax rate of 27% is the nominal tax rate for Nucor. 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 NUE 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 NUE are equal to 32.6%.

Life of production assets of 11.1 years is the average useful life of capital assets used in Nucor 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 NUE is equal to 17.5%. 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 - $8739.036 million for Nucor - 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 316.343 million for Nucor 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 Nucor at the current share price and the inputted number of shares is $18.4 billion.

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COMPANY NEWS

▶ Nucor posts strong quarter despite impairment charge   [10:36AM  American City Business Journals]
▶ Nucor: 3Q Earnings Snapshot   [09:14AM  Associated Press]
▶ Q3 Earnings Outlook For Nucor Corporation   [Oct-17-18 02:20PM  Benzinga]
▶ Steel ETF Steady Amid Sector Downgrade   [Oct-16-18 11:06AM  ETF Trends]
▶ Could Nucor lead the steel industry on clean energy?   [01:19PM  American City Business Journals]
▶ Former Nucor CEO Dan DiMicco to talk steel tariffs at upcoming conference in Charlotte   [Oct-05-18 12:42PM  American City Business Journals]
▶ Nucor guidance sees strong Q3 with a caveat   [Oct-02-18 03:16PM  American City Business Journals]
▶ New Strong Buy Stocks for September 18th   [Sep-18-18 10:15AM  Zacks]
▶ Nucor Announces Guidance For Its Third Quarter Earnings   [Sep-14-18 09:00AM  PR Newswire]
▶ Charlotte's Nucor plans $650M expansion at Kentucky steel plant   [Sep-07-18 02:50PM  American City Business Journals]
▶ 3 Things Nucor Corp. Management Wants You To Know   [Aug-31-18 06:22AM  Motley Fool]
▶ 7 Stocks to Buy Amid Trade War Fears   [Aug-24-18 12:55PM  InvestorPlace]
▶ United States Steel Corporation: Buy the Dip?   [Aug-16-18 09:45AM  Motley Fool]
▶ Top Ranked Value Stocks to Buy for August 10th   [Aug-10-18 10:22AM  Zacks]
▶ 3 Top Large-Cap Stocks to Buy Right Now   [10:03AM  Motley Fool]
▶ PRESS DIGEST-New York Times business news - Aug 6   [Aug-06-18 01:34AM  Reuters]
▶ Accusations fly as firms seek to avoid Trump's steel tariff   [Jul-30-18 04:22PM  Associated Press]
▶ Rising backlash as US firms seek Trump's steel tariff waiver   [Jul-29-18 02:47PM  Associated Press]
▶ Nucor invests in technology for certain steel production, to build pilot facility   [Jul-27-18 12:59PM  American City Business Journals]
▶ 7 Stocks That Can Win The Trade Wars: Goldman   [Jul-24-18 01:00PM  Investopedia]

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