Common Stock Valuation Ratios (Price Multiples)
Quarterly Data
Valuation ratios measure the quantity of an asset or flaw (e.g., earnings) associated with ownership of a specified claim (e.g., a share of ownership of the enterprise).
Historical Valuation Ratios (Summary)
Steel Dynamics Inc., historical price multiples (quarterly data)
Based on: 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
- Price to Earnings (P/E) Ratio
-
The Price to Earnings ratio demonstrates a general downward trend from early 2018 through late 2019, declining from 13.19 to 8.56. This suggests a decreasing market valuation relative to earnings during that period.
In 2020, the ratio increased significantly, peaking at 16.86 by the fourth quarter, indicating a higher valuation relative to earnings, possibly reflecting market optimism or temporary earnings volatility.
Following this peak, a pronounced decrease occurred through 2021 and into 2022, reaching a low of 3.18 in mid-2022 before slightly recovering to 3.99 by the third quarter of 2022. This substantial decline suggests market reassessment leading to lower earnings multiples, which could be due to improved earnings, market sentiment shifts, or both.
- Price to Operating Profit (P/OP) Ratio
-
The Price to Operating Profit ratio shows a pattern similar to the P/E ratio but with generally lower values. From 2018 to late 2019, the ratio decreased steadily from 10.49 to 5.82, indicating increasing operating profitability or decreasing market prices relative to operating income.
In 2020, the ratio again rose markedly, reaching 10.96 in the last quarter, mirroring the spike in the P/E ratio and suggesting a rise in market valuation relative to operating profit during this period.
Subsequent quarters show a significant decline back down to 2.38 by mid-2022, followed by a slight rebound to 2.99. This pattern aligns with the movements in the P/E ratio, indicating a significant market repricing relative to operating profit in recent periods.
- Price to Sales (P/S) Ratio
-
The Price to Sales ratio declined steadily from 1.13 in early 2018 to a low of 0.5 by the first quarter of 2020, reflecting either rising sales relative to market price or decreasing market price relative to sales.
It increased thereafter throughout 2020 and into early 2021, peaking at 1.1, before generally declining again through 2022, reaching 0.63 by mid-year and recovering modestly to 0.76 by the third quarter.
This ratio exhibits smaller fluctuations compared to P/E and P/OP, suggesting more stability in revenue levels relative to market price, although the upward and downward movements indicate changing investor expectations or sales performance over time.
- Price to Book Value (P/BV) Ratio
-
The Price to Book Value ratio shows a consistent downward trajectory from 3.19 in early 2018 to 1.41 by the end of 2019, suggesting a declining market valuation in relation to the book value of the company.
It then rose notably during 2020 and early 2021, reaching 2.48, indicating improved market perceptions or increased book value growth.
Subsequently, the ratio declined again through 2022, falling to 1.84 mid-year before rising slightly to 2.16 by the third quarter. These fluctuations highlight efforts by the market to revalue the company against its net asset base, reflecting changing investor sentiment or internal financial adjustments.
Price to Earnings (P/E)
Steel Dynamics Inc., historical P/E calculation (quarterly data)
| Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 175,571,409 | 182,610,729 | 188,690,008 | 191,299,162 | 198,451,226 | 204,113,883 | 211,218,956 | 211,005,100 | 210,366,497 | 210,364,813 | 210,332,119 | 213,554,449 | 215,452,169 | 219,613,147 | 222,245,142 | 224,105,246 | 229,552,226 | 234,785,650 | 235,933,638 | ||||||
| Selected Financial Data (US$) | |||||||||||||||||||||||||
| Net income attributable to Steel Dynamics, Inc. (in thousands) | 914,325) | 1,209,554) | 1,103,931) | 1,090,505) | 990,763) | 702,291) | 430,507) | 187,843) | 100,143) | 75,496) | 187,340) | 121,425) | 151,048) | 194,302) | 204,328) | 270,004) | 398,375) | 362,449) | 227,551) | ||||||
| Earnings per share (EPS)2 | 24.60 | 24.07 | 20.60 | 16.80 | 11.65 | 6.96 | 3.76 | 2.61 | 2.30 | 2.54 | 3.11 | 3.14 | 3.80 | 4.86 | 5.56 | 5.62 | 5.63 | 4.46 | 3.56 | ||||||
| Share price1, 3 | 98.04 | 76.55 | 85.75 | 70.58 | 62.74 | 61.06 | 55.28 | 44.01 | 33.35 | 30.19 | 24.30 | 26.89 | 30.36 | 28.19 | 32.41 | 37.95 | 41.69 | 44.30 | 46.92 | ||||||
| Valuation Ratio | |||||||||||||||||||||||||
| P/E ratio4 | 3.99 | 3.18 | 4.16 | 4.20 | 5.39 | 8.77 | 14.71 | 16.86 | 14.48 | 11.86 | 7.81 | 8.56 | 7.98 | 5.80 | 5.83 | 6.76 | 7.40 | 9.92 | 13.19 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| P/E Ratio, Competitors5 | |||||||||||||||||||||||||
| Freeport-McMoRan Inc. | 12.97 | 8.88 | 11.23 | 14.75 | 13.92 | 18.54 | 33.67 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Based on: 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Data adjusted for splits and stock dividends.
2 Q3 2022 Calculation
EPS
= (Net income attributable to Steel Dynamics, Inc.Q3 2022
+ Net income attributable to Steel Dynamics, Inc.Q2 2022
+ Net income attributable to Steel Dynamics, Inc.Q1 2022
+ Net income attributable to Steel Dynamics, Inc.Q4 2021)
÷ No. shares of common stock outstanding
= (914,325,000 + 1,209,554,000 + 1,103,931,000 + 1,090,505,000)
÷ 175,571,409 = 24.60
3 Closing price as at the filing date of Steel Dynamics Inc. Quarterly or Annual Report.
4 Q3 2022 Calculation
P/E ratio = Share price ÷ EPS
= 98.04 ÷ 24.60 = 3.99
5 Click competitor name to see calculations.
The quarterly financial data reveals distinct trends in the share price, earnings per share (EPS), and price-to-earnings (P/E) ratio over the observation period.
- Share Price
- The share price demonstrated a downward trend from March 2018 to March 2020, declining from approximately $47 to around $24. Subsequently, the share price showed a significant recovery and sustained upward momentum, rising sharply to reach over $98 by September 2022. Despite some fluctuations, such as a dip from $85.75 in March 2022 to $76.55 in June 2022, the overall trend in the latter period was strongly positive.
- Earnings Per Share (EPS)
- EPS exhibited a similar pattern to the share price during the initial years, with values decreasing from about $3.56 in March 2018 to approximately $2.3 in September 2020. From that point onward, EPS increased robustly, accelerating particularly from December 2020. The EPS rose from $2.61 at the end of 2020 to $24.6 by September 2022, indicating a substantial improvement in the company’s profitability over the latter period.
- Price-to-Earnings (P/E) Ratio
- The P/E ratio initially decreased from 13.19 in March 2018 to a low of around 5.8 by mid-2019, reflecting either diminishing share prices relative to earnings or increasing earnings relative to price. However, from late 2019 to December 2020, the P/E ratio increased markedly, peaking near 16.86, which could indicate that the market was valuing the company more highly relative to its earnings during this period of lower EPS. Following this peak, the P/E ratio declined sharply from early 2021 through September 2022, dropping to below 4.0. This decline is consistent with the rapid growth in earnings outpacing the share price appreciation in recent quarters.
Overall, the data reflects a period of initial decline or stagnation in market valuation and earnings followed by a pronounced recovery and growth in both metrics. The sharp increase in EPS alongside a moderated growth in share price in recent quarters has led to a substantial contraction in the P/E ratio, suggesting improved earnings performance that may not yet be fully priced into the shares or reflecting a market adjustment to higher profitability levels.
Price to Operating Profit (P/OP)
Steel Dynamics Inc., historical P/OP calculation (quarterly data)
| Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 175,571,409 | 182,610,729 | 188,690,008 | 191,299,162 | 198,451,226 | 204,113,883 | 211,218,956 | 211,005,100 | 210,366,497 | 210,364,813 | 210,332,119 | 213,554,449 | 215,452,169 | 219,613,147 | 222,245,142 | 224,105,246 | 229,552,226 | 234,785,650 | 235,933,638 | ||||||
| Selected Financial Data (US$) | |||||||||||||||||||||||||
| Operating income (in thousands) | 1,219,844) | 1,618,063) | 1,494,867) | 1,429,126) | 1,322,045) | 955,735) | 594,199) | 258,750) | 155,856) | 158,850) | 273,686) | 181,961) | 228,045) | 285,032) | 291,842) | 365,553) | 531,572) | 501,887) | 323,397) | ||||||
| Operating profit per share2 | 32.82 | 32.11 | 27.57 | 22.48 | 15.78 | 9.62 | 5.53 | 4.01 | 3.66 | 4.01 | 4.61 | 4.62 | 5.43 | 6.71 | 7.61 | 7.69 | 6.76 | 5.50 | 4.47 | ||||||
| Share price1, 3 | 98.04 | 76.55 | 85.75 | 70.58 | 62.74 | 61.06 | 55.28 | 44.01 | 33.35 | 30.19 | 24.30 | 26.89 | 30.36 | 28.19 | 32.41 | 37.95 | 41.69 | 44.30 | 46.92 | ||||||
| Valuation Ratio | |||||||||||||||||||||||||
| P/OP ratio4 | 2.99 | 2.38 | 3.11 | 3.14 | 3.98 | 6.34 | 10.00 | 10.96 | 9.11 | 7.54 | 5.28 | 5.82 | 5.59 | 4.20 | 4.26 | 4.94 | 6.16 | 8.05 | 10.49 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| P/OP Ratio, Competitors5 | |||||||||||||||||||||||||
| Freeport-McMoRan Inc. | 6.44 | 4.65 | 5.96 | 7.59 | 7.00 | 8.51 | 13.71 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Based on: 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Data adjusted for splits and stock dividends.
2 Q3 2022 Calculation
Operating profit per share
= (Operating incomeQ3 2022
+ Operating incomeQ2 2022
+ Operating incomeQ1 2022
+ Operating incomeQ4 2021)
÷ No. shares of common stock outstanding
= (1,219,844,000 + 1,618,063,000 + 1,494,867,000 + 1,429,126,000)
÷ 175,571,409 = 32.82
3 Closing price as at the filing date of Steel Dynamics Inc. Quarterly or Annual Report.
4 Q3 2022 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 98.04 ÷ 32.82 = 2.99
5 Click competitor name to see calculations.
The financial data reveals several key trends over the period analyzed. The share price of the company exhibited notable volatility with a general upward trend after an initial decline. Meanwhile, operating profit per share demonstrated steady growth punctuated by periods of acceleration. The price-to-operating-profit (P/OP) ratio fluctuated but showed an overall declining trend, indicating changing market valuation relative to profitability.
- Share Price
- The share price started at approximately $46.92 and declined to a low around $24.30 during the first quarter of 2020. This decline lasted through late 2019 and early 2020, reflecting a period of reduced market confidence or external challenges. After this trough, there was a pronounced recovery and appreciation in price, climbing steadily to reach a peak of $98.04 by September 2022. This substantial increase suggests improving investor sentiment or underlying business strength during the latter period.
- Operating Profit Per Share
- Operating profit per share showed an increasing trend overall, commencing at $4.47 and rising to $32.82 by the latest quarter. The growth, while consistent, accelerated markedly from early 2021 onwards, indicating improved operational efficiency or higher profitability from business activities. The initial steady but modest increases between 2018 and early 2020 were followed by a robust upward trend in the subsequent periods.
- Price to Operating Profit (P/OP) Ratio
- The P/OP ratio experienced significant fluctuations throughout the timeframe. Initially, it declined from 10.49 to values near 4.26 in the first half of 2019, reflecting an improving earnings basis relative to share price. However, from late 2019 through 2020, the ratio increased again, reaching highs over 10, primarily due to a decline in operating profit per share and share price volatility. From 2021 onwards, the ratio exhibited a clear downward trajectory, falling below 3.0 by mid-2022. This decline signals that the share price growth was outpaced by profit growth, suggesting the stock became more attractively valued relative to its operating profits.
In summary, the data depicts a company whose profitability per share improved substantially over time, especially post-2020, coinciding with a recovery and strong rise in share price. The P/OP ratio's decline in the latter part of the period indicates enhanced market valuation efficiency, with profits growing faster than the share price, suggesting potential undervaluation or strengthened earnings power. The initial period of price decline and ratio volatility may reflect external pressures or operational challenges that were subsequently overcome.
Price to Sales (P/S)
Steel Dynamics Inc., historical P/S calculation (quarterly data)
| Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 175,571,409 | 182,610,729 | 188,690,008 | 191,299,162 | 198,451,226 | 204,113,883 | 211,218,956 | 211,005,100 | 210,366,497 | 210,364,813 | 210,332,119 | 213,554,449 | 215,452,169 | 219,613,147 | 222,245,142 | 224,105,246 | 229,552,226 | 234,785,650 | 235,933,638 | ||||||
| Selected Financial Data (US$) | |||||||||||||||||||||||||
| Net sales (in thousands) | 5,651,707) | 6,212,878) | 5,569,902) | 5,310,657) | 5,088,288) | 4,465,308) | 3,544,597) | 2,601,245) | 2,330,832) | 2,094,305) | 2,575,100) | 2,350,196) | 2,526,845) | 2,770,515) | 2,817,435) | 2,903,892) | 3,223,547) | 3,090,525) | 2,603,875) | ||||||
| Sales per share2 | 129.55 | 121.47 | 108.29 | 96.23 | 79.11 | 63.41 | 50.05 | 45.50 | 44.45 | 45.38 | 48.60 | 49.00 | 51.14 | 53.35 | 54.15 | 52.75 | 49.03 | 44.61 | 41.43 | ||||||
| Share price1, 3 | 98.04 | 76.55 | 85.75 | 70.58 | 62.74 | 61.06 | 55.28 | 44.01 | 33.35 | 30.19 | 24.30 | 26.89 | 30.36 | 28.19 | 32.41 | 37.95 | 41.69 | 44.30 | 46.92 | ||||||
| Valuation Ratio | |||||||||||||||||||||||||
| P/S ratio4 | 0.76 | 0.63 | 0.79 | 0.73 | 0.79 | 0.96 | 1.10 | 0.97 | 0.75 | 0.67 | 0.50 | 0.55 | 0.59 | 0.53 | 0.60 | 0.72 | 0.85 | 0.99 | 1.13 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| P/S Ratio, Competitors5 | |||||||||||||||||||||||||
| Freeport-McMoRan Inc. | 2.17 | 1.78 | 2.34 | 2.78 | 2.57 | 2.78 | 3.75 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Based on: 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Data adjusted for splits and stock dividends.
2 Q3 2022 Calculation
Sales per share
= (Net salesQ3 2022
+ Net salesQ2 2022
+ Net salesQ1 2022
+ Net salesQ4 2021)
÷ No. shares of common stock outstanding
= (5,651,707,000 + 6,212,878,000 + 5,569,902,000 + 5,310,657,000)
÷ 175,571,409 = 129.55
3 Closing price as at the filing date of Steel Dynamics Inc. Quarterly or Annual Report.
4 Q3 2022 Calculation
P/S ratio = Share price ÷ Sales per share
= 98.04 ÷ 129.55 = 0.76
5 Click competitor name to see calculations.
- Share Price Trends
- The share price shows a general decline from March 2018 to March 2020, dropping from $46.92 to $24.30. Following this period, a pronounced upward trend emerges, with the share price rising steadily to $98.04 by September 2022, indicating a strong recovery and significant appreciation over the later periods.
- Sales per Share Trends
- Sales per share exhibit a consistent upward trajectory throughout the entire timeframe. Starting at $41.43 in March 2018, sales per share increased steadily, reaching $129.55 by September 2022. This persistent growth suggests improving operational performance or higher revenue generation per share over time.
- Price-to-Sales (P/S) Ratio Trends
- The P/S ratio declined from 1.13 in March 2018 to a low of 0.50 in March 2020, indicating that the share price fell faster than sales per share during this time. Post-March 2020, the P/S ratio rebounded to a peak of 1.10 in March 2021 before gradually declining again to 0.76 by September 2022. This fluctuation signifies changing market valuations relative to sales, with the initial undervaluation partially reversing and stabilizing at moderate levels.
- Overall Insights
- The data reveals a challenging period up to early 2020, marked by declining share prices and decreasing P/S ratios despite steadily increasing sales per share. The subsequent recovery phase features a strong increase in share price and a moderate recovery in P/S ratio. The continuous increase in sales per share throughout the entire period reflects sustained growth in business fundamentals, while market valuation ratios indicate periods of both undervaluation and moderate revaluation relative to sales.
Price to Book Value (P/BV)
Steel Dynamics Inc., historical P/BV calculation (quarterly data)
| Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 175,571,409 | 182,610,729 | 188,690,008 | 191,299,162 | 198,451,226 | 204,113,883 | 211,218,956 | 211,005,100 | 210,366,497 | 210,364,813 | 210,332,119 | 213,554,449 | 215,452,169 | 219,613,147 | 222,245,142 | 224,105,246 | 229,552,226 | 234,785,650 | 235,933,638 | ||||||
| Selected Financial Data (US$) | |||||||||||||||||||||||||
| Total Steel Dynamics, Inc. equity (in thousands) | 7,971,156) | 7,588,348) | 6,964,354) | 6,304,641) | 5,607,926) | 5,020,114) | 4,728,792) | 4,345,164) | 4,201,183) | 4,145,250) | 4,113,526) | 4,075,834) | 4,056,641) | 4,064,490) | 4,008,111) | 3,935,071) | 4,033,768) | 3,746,981) | 3,470,719) | ||||||
| Book value per share (BVPS)2 | 45.40 | 41.55 | 36.91 | 32.96 | 28.26 | 24.59 | 22.39 | 20.59 | 19.97 | 19.71 | 19.56 | 19.09 | 18.83 | 18.51 | 18.03 | 17.56 | 17.57 | 15.96 | 14.71 | ||||||
| Share price1, 3 | 98.04 | 76.55 | 85.75 | 70.58 | 62.74 | 61.06 | 55.28 | 44.01 | 33.35 | 30.19 | 24.30 | 26.89 | 30.36 | 28.19 | 32.41 | 37.95 | 41.69 | 44.30 | 46.92 | ||||||
| Valuation Ratio | |||||||||||||||||||||||||
| P/BV ratio4 | 2.16 | 1.84 | 2.32 | 2.14 | 2.22 | 2.48 | 2.47 | 2.14 | 1.67 | 1.53 | 1.24 | 1.41 | 1.61 | 1.52 | 1.80 | 2.16 | 2.37 | 2.78 | 3.19 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| P/BV Ratio, Competitors5 | |||||||||||||||||||||||||
| Freeport-McMoRan Inc. | 3.36 | 2.91 | 3.86 | 4.54 | 4.07 | 4.38 | 5.57 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Based on: 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Data adjusted for splits and stock dividends.
2 Q3 2022 Calculation
BVPS = Total Steel Dynamics, Inc. equity ÷ No. shares of common stock outstanding
= 7,971,156,000 ÷ 175,571,409 = 45.40
3 Closing price as at the filing date of Steel Dynamics Inc. Quarterly or Annual Report.
4 Q3 2022 Calculation
P/BV ratio = Share price ÷ BVPS
= 98.04 ÷ 45.40 = 2.16
5 Click competitor name to see calculations.
- Share Price Trend
- The share price exhibited a declining trend from March 2018 through March 2020, falling from approximately $46.92 to $24.30. Following this period, a recovery and significant upward movement occurred, with the share price rising sharply to $98.04 by September 2022. Notable rebounds happened from June 2020 onwards, including a particularly strong increase in 2021 and 2022, despite some fluctuations such as a decline between March 2022 and June 2022.
- Book Value Per Share (BVPS) Trend
- Book value per share showed a consistent upward trajectory throughout the period observed. Beginning at $14.71 in March 2018, BVPS increased steadily across all quarters, reaching $45.40 by September 2022. This reflects ongoing growth or accumulation in the company's net asset base per share over the nearly five-year span.
- Price-to-Book Value (P/BV) Ratio Trend
- The P/BV ratio declined significantly from 3.19 in March 2018 to a low of 1.24 in March 2020, indicating that the market price was approaching closer to the book value per share, possibly reflecting investor caution or market undervaluation during that time. After March 2020, the ratio rebounded substantially, rising to values above 2.0 by 2021 and fluctuating somewhat in 2022. This increase corresponds with the recovery and growth in share price outpacing that of book value per share during the latter part of the period.
- Insights and Interpretation
- The company's book value per share has steadily strengthened, indicating fundamental growth and asset accumulation. The initial decline in share price and P/BV ratio up to early 2020 suggests a period of market pessimism or external challenges impacting investor sentiment. However, the subsequent strong recovery in share prices, accompanied by a rising P/BV ratio, indicates renewed investor confidence and possibly improved market conditions or company performance. The widening gap between market price and book value from 2020 onwards may reflect heightened market expectations of future earnings potential or other favorable factors beyond the book value.