Intrinsic value of Nucor - NUE

Previous Close

$64.01

  Intrinsic Value

$33.17

stock screener

  Rating & Target

sell

-48%

Previous close

$64.01

 
Intrinsic value

$33.17

 
Up/down potential

-48%

 
Rating

sell

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 2017), $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 20.4

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
   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
   2047

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  25.00
  23.00
  21.20
  19.58
  18.12
  16.81
  15.63
  14.57
  13.61
  12.75
  11.97
  11.28
  10.65
  10.08
  9.58
  9.12
  8.71
  8.34
  8.00
  7.70
  7.43
  7.19
  6.97
  6.77
  6.60
  6.44
  6.29
  6.16
  6.05
  5.94
Revenue, $m
  25,315
  31,137
  37,739
  45,128
  53,306
  62,266
  71,998
  82,485
  93,711
  105,658
  118,308
  131,649
  145,668
  160,357
  175,711
  191,733
  208,425
  225,798
  243,866
  262,648
  282,167
  302,450
  323,529
  345,441
  368,224
  391,922
  416,582
  442,256
  468,998
  496,866
Variable operating expenses, $m
  22,402
  27,483
  33,243
  39,691
  46,828
  54,647
  63,139
  72,291
  82,087
  92,512
  103,241
  114,882
  127,115
  139,933
  153,333
  167,313
  181,880
  197,040
  212,807
  229,197
  246,230
  263,929
  282,324
  301,445
  321,326
  342,006
  363,526
  385,930
  409,266
  433,584
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
  22,803
  27,892
  33,661
  40,119
  47,265
  55,094
  63,596
  72,758
  82,564
  92,999
  103,739
  115,391
  127,635
  140,465
  153,876
  167,868
  182,447
  197,620
  213,400
  229,803
  246,849
  264,562
  282,971
  302,106
  322,001
  342,696
  364,231
  386,651
  410,003
  434,337
Operating income, $m
  2,512
  3,245
  4,077
  5,009
  6,041
  7,173
  8,402
  9,728
  11,147
  12,658
  14,570
  16,258
  18,032
  19,892
  21,836
  23,864
  25,978
  28,178
  30,466
  32,845
  35,318
  37,888
  40,559
  43,335
  46,222
  49,225
  52,351
  55,605
  58,995
  62,529
EBITDA, $m
  3,836
  4,802
  5,898
  7,125
  8,484
  9,974
  11,593
  13,338
  15,207
  17,196
  19,302
  21,524
  23,859
  26,306
  28,864
  31,533
  34,315
  37,210
  40,221
  43,351
  46,605
  49,986
  53,500
  57,153
  60,951
  64,902
  69,014
  73,296
  77,755
  82,403
Interest expense (income), $m
  183
  205
  301
  411
  536
  676
  830
  1,000
  1,184
  1,383
  1,595
  1,821
  2,061
  2,313
  2,579
  2,857
  3,148
  3,451
  3,767
  4,096
  4,438
  4,793
  5,163
  5,547
  5,946
  6,360
  6,792
  7,240
  7,707
  8,193
  8,699
Earnings before tax, $m
  2,307
  2,945
  3,666
  4,473
  5,365
  6,342
  7,402
  8,543
  9,764
  11,063
  12,748
  14,197
  15,719
  17,313
  18,979
  20,717
  22,527
  24,411
  26,371
  28,408
  30,525
  32,725
  35,012
  37,389
  39,862
  42,434
  45,111
  47,898
  50,802
  53,829
Tax expense, $m
  623
  795
  990
  1,208
  1,449
  1,712
  1,999
  2,307
  2,636
  2,987
  3,442
  3,833
  4,244
  4,674
  5,124
  5,593
  6,082
  6,591
  7,120
  7,670
  8,242
  8,836
  9,453
  10,095
  10,763
  11,457
  12,180
  12,933
  13,717
  14,534
Net income, $m
  1,684
  2,150
  2,676
  3,265
  3,917
  4,630
  5,404
  6,237
  7,128
  8,076
  9,306
  10,364
  11,475
  12,638
  13,854
  15,123
  16,445
  17,820
  19,251
  20,738
  22,283
  23,889
  25,559
  27,294
  29,099
  30,977
  32,931
  34,966
  37,086
  39,295

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
  19,808
  24,364
  29,529
  35,311
  41,710
  48,722
  56,336
  64,542
  73,326
  82,674
  92,573
  103,012
  113,981
  125,475
  137,489
  150,025
  163,087
  176,681
  190,819
  205,515
  220,788
  236,659
  253,153
  270,298
  288,125
  306,668
  325,964
  346,053
  366,978
  388,784
Adjusted assets (=assets-cash), $m
  19,808
  24,364
  29,529
  35,311
  41,710
  48,722
  56,336
  64,542
  73,326
  82,674
  92,573
  103,012
  113,981
  125,475
  137,489
  150,025
  163,087
  176,681
  190,819
  205,515
  220,788
  236,659
  253,153
  270,298
  288,125
  306,668
  325,964
  346,053
  366,978
  388,784
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
  10,126
  12,455
  15,095
  18,051
  21,322
  24,907
  28,799
  32,994
  37,484
  42,263
  47,323
  52,660
  58,267
  64,143
  70,285
  76,693
  83,370
  90,319
  97,546
  105,059
  112,867
  120,980
  129,412
  138,176
  147,289
  156,769
  166,633
  176,902
  187,599
  198,746
Working capital, $m
  2,861
  3,519
  4,264
  5,099
  6,024
  7,036
  8,136
  9,321
  10,589
  11,939
  13,369
  14,876
  16,460
  18,120
  19,855
  21,666
  23,552
  25,515
  27,557
  29,679
  31,885
  34,177
  36,559
  39,035
  41,609
  44,287
  47,074
  49,975
  52,997
  56,146
Total debt, $m
  5,567
  7,608
  9,922
  12,512
  15,379
  18,520
  21,932
  25,608
  29,543
  33,731
  38,166
  42,842
  47,756
  52,906
  58,288
  63,904
  69,756
  75,846
  82,180
  88,763
  95,606
  102,716
  110,105
  117,786
  125,773
  134,080
  142,725
  151,725
  161,099
  170,868
Total liabilities, $m
  8,874
  10,915
  13,229
  15,819
  18,686
  21,827
  25,239
  28,915
  32,850
  37,038
  41,473
  46,149
  51,064
  56,213
  61,595
  67,211
  73,063
  79,153
  85,487
  92,071
  98,913
  106,023
  113,412
  121,093
  129,080
  137,387
  146,032
  155,032
  164,406
  174,175
Total equity, $m
  10,934
  13,449
  16,300
  19,492
  23,024
  26,894
  31,098
  35,627
  40,476
  45,636
  51,100
  56,863
  62,918
  69,262
  75,894
  82,814
  90,024
  97,528
  105,332
  113,444
  121,875
  130,636
  139,740
  149,204
  159,045
  169,281
  179,932
  191,021
  202,572
  214,609
Total liabilities and equity, $m
  19,808
  24,364
  29,529
  35,311
  41,710
  48,721
  56,337
  64,542
  73,326
  82,674
  92,573
  103,012
  113,982
  125,475
  137,489
  150,025
  163,087
  176,681
  190,819
  205,515
  220,788
  236,659
  253,152
  270,297
  288,125
  306,668
  325,964
  346,053
  366,978
  388,784
Debt-to-equity ratio
  0.510
  0.570
  0.610
  0.640
  0.670
  0.690
  0.710
  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
  1,684
  2,150
  2,676
  3,265
  3,917
  4,630
  5,404
  6,237
  7,128
  8,076
  9,306
  10,364
  11,475
  12,638
  13,854
  15,123
  16,445
  17,820
  19,251
  20,738
  22,283
  23,889
  25,559
  27,294
  29,099
  30,977
  32,931
  34,966
  37,086
  39,295
Depreciation, amort., depletion, $m
  1,324
  1,557
  1,821
  2,116
  2,443
  2,802
  3,191
  3,611
  4,060
  4,537
  4,732
  5,266
  5,827
  6,414
  7,028
  7,669
  8,337
  9,032
  9,755
  10,506
  11,287
  12,098
  12,941
  13,818
  14,729
  15,677
  16,663
  17,690
  18,760
  19,875
Funds from operations, $m
  3,008
  3,706
  4,497
  5,382
  6,360
  7,431
  8,595
  9,847
  11,188
  12,613
  14,039
  15,630
  17,301
  19,053
  20,883
  22,792
  24,782
  26,852
  29,005
  31,244
  33,570
  35,987
  38,500
  41,112
  43,828
  46,653
  49,594
  52,656
  55,846
  59,170
Change in working capital, $m
  572
  658
  746
  835
  924
  1,013
  1,100
  1,185
  1,269
  1,350
  1,430
  1,508
  1,584
  1,660
  1,735
  1,810
  1,886
  1,963
  2,042
  2,122
  2,206
  2,292
  2,382
  2,476
  2,574
  2,678
  2,787
  2,901
  3,022
  3,149
Cash from operations, $m
  2,436
  3,048
  3,751
  4,547
  5,436
  6,419
  7,495
  8,662
  9,919
  11,263
  12,609
  14,122
  15,717
  17,393
  19,148
  20,982
  22,895
  24,889
  26,964
  29,121
  31,364
  33,695
  36,118
  38,636
  41,253
  43,976
  46,807
  49,755
  52,824
  56,021
Maintenance CAPEX, $m
  -810
  -1,013
  -1,245
  -1,510
  -1,805
  -2,132
  -2,491
  -2,880
  -3,299
  -3,748
  -4,226
  -4,732
  -5,266
  -5,827
  -6,414
  -7,028
  -7,669
  -8,337
  -9,032
  -9,755
  -10,506
  -11,287
  -12,098
  -12,941
  -13,818
  -14,729
  -15,677
  -16,663
  -17,690
  -18,760
New CAPEX, $m
  -2,025
  -2,329
  -2,640
  -2,956
  -3,271
  -3,584
  -3,893
  -4,195
  -4,490
  -4,779
  -5,060
  -5,336
  -5,608
  -5,876
  -6,142
  -6,408
  -6,677
  -6,949
  -7,227
  -7,513
  -7,808
  -8,113
  -8,432
  -8,765
  -9,113
  -9,479
  -9,864
  -10,270
  -10,697
  -11,147
Cash from investing activities, $m
  -2,835
  -3,342
  -3,885
  -4,466
  -5,076
  -5,716
  -6,384
  -7,075
  -7,789
  -8,527
  -9,286
  -10,068
  -10,874
  -11,703
  -12,556
  -13,436
  -14,346
  -15,286
  -16,259
  -17,268
  -18,314
  -19,400
  -20,530
  -21,706
  -22,931
  -24,208
  -25,541
  -26,933
  -28,387
  -29,907
Free cash flow, $m
  -399
  -293
  -135
  81
  360
  702
  1,112
  1,587
  2,129
  2,736
  3,322
  4,054
  4,844
  5,691
  6,592
  7,545
  8,549
  9,603
  10,704
  11,854
  13,051
  14,295
  15,588
  16,930
  18,323
  19,767
  21,266
  22,822
  24,437
  26,114
Issuance/(repayment) of debt, $m
  1,772
  2,041
  2,314
  2,590
  2,867
  3,141
  3,411
  3,676
  3,935
  4,188
  4,435
  4,677
  4,914
  5,149
  5,383
  5,616
  5,851
  6,090
  6,334
  6,584
  6,842
  7,110
  7,389
  7,681
  7,987
  8,307
  8,645
  9,000
  9,374
  9,769
Issuance/(repurchase) of shares, $m
  511
  365
  175
  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  
  2,283
  2,406
  2,489
  2,590
  2,867
  3,141
  3,411
  3,676
  3,935
  4,188
  4,435
  4,677
  4,914
  5,149
  5,383
  5,616
  5,851
  6,090
  6,334
  6,584
  6,842
  7,110
  7,389
  7,681
  7,987
  8,307
  8,645
  9,000
  9,374
  9,769
Total cash flow (excl. dividends), $m
  1,884
  2,113
  2,354
  2,672
  3,226
  3,844
  4,523
  5,264
  6,065
  6,924
  7,757
  8,730
  9,758
  10,840
  11,974
  13,161
  14,401
  15,693
  17,038
  18,438
  19,893
  21,406
  22,977
  24,611
  26,309
  28,075
  29,911
  31,822
  33,811
  35,883
Retained Cash Flow (-), $m
  -2,195
  -2,515
  -2,851
  -3,192
  -3,532
  -3,870
  -4,203
  -4,530
  -4,849
  -5,160
  -5,464
  -5,762
  -6,055
  -6,344
  -6,632
  -6,920
  -7,210
  -7,504
  -7,804
  -8,112
  -8,431
  -8,761
  -9,105
  -9,464
  -9,841
  -10,236
  -10,652
  -11,089
  -11,550
  -12,037
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
  61
  76
  93
  113
  135
  160
  187
  216
  247
  281
  317
  355
  395
  437
  481
  527
  575
  625
  677
  732
  788
  847
  907
  971
  1,036
  1,105
  1,176
  1,250
  1,327
  1,407
Cash available for distribution, $m
  -312
  -402
  -497
  -520
  -306
  -27
  320
  734
  1,216
  1,764
  2,293
  2,968
  3,703
  4,495
  5,342
  6,241
  7,191
  8,189
  9,234
  10,325
  11,462
  12,645
  13,873
  15,147
  16,469
  17,839
  19,260
  20,733
  22,261
  23,846
Discount rate, %
  6.00
  6.30
  6.62
  6.95
  7.29
  7.66
  8.04
  8.44
  8.86
  9.31
  9.77
  10.26
  10.78
  11.31
  11.88
  12.47
  13.10
  13.75
  14.44
  15.16
  15.92
  16.72
  17.55
  18.43
  19.35
  20.32
  21.33
  22.40
  23.52
  24.70
PV of cash for distribution, $m
  -294
  -356
  -410
  -398
  -215
  -17
  186
  384
  566
  724
  822
  919
  979
  1,002
  992
  952
  887
  805
  712
  613
  515
  422
  336
  261
  198
  145
  104
  72
  49
  32
Current shareholders' claim on cash, %
  97.6
  96.2
  95.6
  95.6
  95.6
  95.6
  95.6
  95.6
  95.6
  95.6
  95.6
  95.6
  95.6
  95.6
  95.6
  95.6
  95.6
  95.6
  95.6
  95.6
  95.6
  95.6
  95.6
  95.6
  95.6
  95.6
  95.6
  95.6
  95.6
  95.6

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 25.6
Price to Sales 1.3
Price to Book 2.6
Price to Tangible Book
Price to Cash Flow 11.7
Price to Free Cash Flow 18
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 million for the last fiscal year's total revenue generated by Nucor. The default revenue input number comes from 2017 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 25% 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 6%, 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 0.3%.

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 40%.

Life of production assets of 10 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 11.3%. 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 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 318 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 $20.4 billion.

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COMPANY NEWS

▶ Nucor: 2Q Earnings Snapshot   [09:27AM  Associated Press]
▶ Nucor's Charts Are Leaning Bullish Right Now   [08:23AM  TheStreet.com]
▶ A Preview Of Nucor's Q2 Earnings   [Jul-18-18 04:14PM  Benzinga]
▶ A Pair of Steals in Steel Stocks for Bears and Bulls   [Jul-05-18 11:46AM  InvestorPlace]
▶ Is Nucor Corporation a Buy?   [08:45AM  Motley Fool]
▶ Nucor CEO Doesn't See Tariffs Spurring a 'Great Recession'   [Jun-26-18 11:45AM  Bloomberg Video]
▶ Does Nucor Corporations (NYSE:NUE) PE Ratio Warrant A Sell?   [Jun-22-18 12:24PM  Simply Wall St.]
▶ Nucor forecasts strong second-quarter, full-year earnings   [Jun-14-18 10:40AM  American City Business Journals]
▶ U.S. Steel Corporation Is Primed for a Massive Breakout   [Jun-13-18 11:26AM  InvestorPlace]
▶ 5 Top Stock Trades for Wednesday Morning   [Jun-12-18 04:15PM  InvestorPlace]
▶ Winners and losers: What metal tariffs may mean for Memphis   [08:30AM  American City Business Journals]
▶ US stocks pare losses as G7 summit gets underway   [Jun-08-18 01:00PM  Yahoo Finance Video]
▶ Buy Nucor Here and on Strength   [Jun-07-18 01:42PM  TheStreet.com]
▶ Greenbrier Companies And Other Great Defensive Stocks   [Jun-04-18 04:05PM  Simply Wall St.]
▶ 3 Top Dividend Stocks With Yields Over 2%   [Jun-03-18 08:16AM  Motley Fool]
▶ The week in Trumponomics - redo edition   [Jun-01-18 05:17PM  Yahoo Finance Video]
▶ A Tariff Windfall For Steel? Probably Not.   [07:10AM  Investopedia]
▶ Nucor the biggest winner on Trump tariffs   [May-31-18 08:36PM  CNBC Videos]
▶ Trumponomics/Tariffs   [05:10PM  Yahoo Finance Video]
▶ Yahoo Finance Live: The Final Round - May 31st, 2018   [01:50PM  Yahoo Finance Video]
▶ Ex-Trump Adviser Says U.S. Can No Longer Afford One-Way Trade   [May-29-18 08:12AM  Bloomberg Video]
▶ New Strong Buy Stocks for May 18th   [May-18-18 10:36AM  Zacks]
▶ Nucor plans $240M steel expansion in Arkansas   [May-14-18 02:08PM  Associated Press]
▶ Charlottes Nucor plans $240 million expansion at Arkansas plant   [May-11-18 02:25PM  American City Business Journals]
▶ Here's How the Steel Industry's Getting Hot   [May-08-18 02:51PM  Zacks]
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