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Steel DynamicsSTLD +1.36%88 Debt-to-EBITDA is 1.49 as of Mar. 2026, which is 1% below its 10-year median of 1.51. GuruFocus rates STLD with a GF Score™ of 88/100 and a GF Value™ of $158.87 (Significantly Overvalued). The stock has 4 warning signs investors should review. Among 494 Steel companies, Steel Dynamics ranks better than 65.79% on this metric.
Debt-to-EBITDA measures a company's ability to pay off its debt.
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
The historical rank and industry rank for Steel Dynamics's Debt-to-EBITDA or its related term are showing as below:
STLD'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: 0.56 Med: 1.51 Max: 2.76
Current: 1.76
During the past 13 years, the highest Debt-to-EBITDA Ratio of Steel Dynamics was 2.76. The lowest was 0.56. And the median was 1.51.
STLD's Debt-to-EBITDA is ranked better than 65.79% of 494
companies
in the Steel industry
Industry Median: 2.865
vs STLD: 1.76
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.
According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
Steel Dynamics Debt-to-EBITDA Related Terms
Steel Dynamics Debt-to-EBITDA Historical Data
* Premium members only.
The historical data trend for Steel Dynamics's Debt-to-EBITDA can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Steel subindustry, Steel Dynamics's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Steel Dynamics Debt-to-EBITDA vs Steel Industry
For the Steel industry and Basic Materials sector, Steel Dynamics's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where Steel Dynamics's Debt-to-EBITDA falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data,
the EBITDA data used here is four times the quarterly (Mar. 2026) EBITDA data.
Steel Dynamics (STLD) has a Debt-to-EBITDA of 1.49 as of Mar. 2026. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Steel Dynamics. This is near median its historical median of 1.51. Over the past decade, Steel Dynamics' Debt-to-EBITDA has ranged from 0.56 to 2.76. According to the industry distribution chart, Steel Dynamics ranks #169 out of 494 companies in the Steel industry, placing it in the top 34.2%.
Is Steel Dynamics' Debt-to-EBITDA too high?
Steel Dynamics' current Debt-to-EBITDA of 1.49 is near median its 10-year median of 1.51. Over the past 10 years, this metric has ranged from a low of 0.56 to a high of 2.76. The Steel industry median Debt-to-EBITDA is 2.87. Steel Dynamics' value of 1.49 is 48% below this industry median. Based on the distribution chart, Steel Dynamics ranks #169 out of 494 companies in the Steel industry, which is above the industry midpoint. Overall, Steel Dynamics has a GF Score™ of 88/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Steel Dynamics' Debt-to-EBITDA compare to RS and NUE?
According to the Steel industry distribution chart, Steel Dynamics ranks #169 out of 494 companies for Debt-to-EBITDA. This puts Steel Dynamics in the upper half of its industry. The industry median Debt-to-EBITDA is 2.87. Steel Dynamics' value of 1.49 is 48% below this benchmark. Historically, Steel Dynamics' own Debt-to-EBITDA has ranged from 0.56 to 2.76 over the past decade. While the company's 10-year median is 1.51 vs. the industry median of 2.87, Steel Dynamics has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Debt-to-EBITDA for a Steel company?
The median Debt-to-EBITDA among Steel companies is 2.87, based on 494 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-EBITDA should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Steel Dynamics's current Debt-to-EBITDA of 1.49 is 48% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Debt-to-EBITDA mean?
A high Debt-to-EBITDA can signal that a stock is expensive relative to its fundamentals. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Steel Dynamics. For the Steel industry, the median Debt-to-EBITDA is 2.87 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Steel Dynamics's current Debt-to-EBITDA is 1.49, which is near median its own 10-year median of 1.51. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Steel Dynamics stock overvalued right now?
Based on GuruFocus' analysis, Steel Dynamics (STLD) is currently considered Significantly Overvalued. The stock's GF Value™ is $158.87, compared to a current price of $233.37 — trading 46.9% above its estimated fair value. The current Debt-to-EBITDA is 1.49, which is near median its 10-year median of 1.51 and 48% below the Steel industry median of 2.87. Steel Dynamics' overall GF Score™ is 88/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-EBITDA calculated?
Debt-to-EBITDA is calculated from a company's financial statements. For Steel Dynamics (STLD), the current Debt-to-EBITDA is 1.49 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Steel Dynamics (STLD) Overvalued in 2026?
Based on GuruFocus' analysis, Steel Dynamics stock appears to be overvalued.
The current stock price of $233.37 is trading 46.9% above its estimated GF Value™ of $158.87.
GuruFocus considers Steel Dynamics to be Significantly Overvalued.
Key valuation signals for STLD:
Debt-to-EBITDA: 1.49 (near median its 10-year median of 1.51)
GF Value™: $158.87 vs. price of $233.37 (46.9% above fair value)
Industry Position: 48% below the Steel median (#169 of 494)
No single metric tells the full story. See the STLD stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Steel Dynamics Inc operates as a domestic steel producer and metal recycler in the United States. The company's product portfolio comprises hot rolled sheet, hot rolled plate, painted sheet products, cold rolled sheet, and others. Its reportable segments are steel operations, metals recycling operations, steel fabrication operations, and aluminum operations. Maximum revenue is generated from its steel operations segment, which consists of manufacturing various steel products and numerous coating operations. Its primary sources of revenue are currently from the manufacture and sale of steel products, the processing and sale of recycled ferrous and nonferrous metals, and the fabrication and sale of steel joists and deck products.
88GF Score
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