Steel Dynamics (STU:SD5) Margin of Safety % (DCF Earnings Based): 12.28% (As of Jun. 26, 2026)


STU:SD5 Steel Dynamics Inc STU:SD5
86 GF Score
Price €220.30
GF Value €137.36
Valuation Significantly Overvalued
! 4 Warning Signs
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What is Steel Dynamics Margin of Safety % (DCF Earnings Based)?

Steel Dynamics STU:SD5 +3.72% 86 Margin of Safety % (DCF Earnings Based) is 12.28% as of Jun. 26, 2026. GuruFocus rates STU:SD5 with a GF Score™ of 86/100 and a GF Value™ of €137.36 (Significantly Overvalued). The stock has 4 warning signs investors should review.

Margin of Safety % (DCF Earnings Based) = (Intrinsic Value: DCF (Earnings Based) - Current Price) / Intrinsic Value: DCF (Earnings Based).

Note: Discounted Earnings model is only suitable for predictable companies (Business Predictability Rank higher than 1-Star). If the company's Predictability Rank is 1-Star or Not Rated, result may not be accurate due to the low predictability of business and the data will not be stored into our database.

As of today (2026-06-26), Steel Dynamics's Predictability Rank is 3-Stars. Steel Dynamics's intrinsic value calculated from the Discounted Earnings model is €251.13 and current share price is €220.30. Consequently,

Steel Dynamics's Margin of Safety % (DCF Earnings Based) using Discounted Earnings model is 12.28%.

STU:SD5 vs RS, NUE, TX: Margin of Safety % (DCF Earnings Based) Comparison

For the Steel subindustry, Steel Dynamics's Margin of Safety % (DCF Earnings Based), along with its competitors' market caps and Margin of Safety % (DCF Earnings Based) 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 Margin of Safety % (DCF Earnings Based) vs Steel Industry

For the Steel industry and Basic Materials sector, Steel Dynamics's Margin of Safety % (DCF Earnings Based) distribution charts can be found below:

* The bar in red indicates where Steel Dynamics's Margin of Safety % (DCF Earnings Based) falls into.


STU:SD5
86GF Score
Steel Dynamics Inc STU:SD5
Margin of Safety % (DCF Earnings Based) is just one metric. See GF Score™, valuation, warning signs, and more.
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Steel Dynamics Margin of Safety % (DCF Earnings Based) Calculation

Steel Dynamics's Margin of Safety % (DCF Earnings Based) for today is calculated as

Margin of Safety % (DCF Earnings Based)=(Intrinsic Value: DCF (Earnings Based)-Current Price)/Intrinsic Value: DCF (Earnings Based)
=(251.13-220.30)/251.13
=12.28 %

* 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.

The intrinsic value is calculated from the Discounted Earnings model with default parameters. The calculation method is the same as Discounted Cash Flow model except earnings are used in the calculation instead of free cash flow.

What does a Margin of Safety % (DCF Earnings Based) of 12.28% mean?
Steel Dynamics (STU:SD5) has a Margin of Safety % (DCF Earnings Based) of 12.28% as of Jun. 26, 2026. Margin of Safety % (DCF Earnings Based) is the percent difference between the current price and the intrinsic DCF Earnings price. View historical data on Steel Dynamics.
Is Steel Dynamics' Margin of Safety % (DCF Earnings Based) too high?
Steel Dynamics' current Margin of Safety % (DCF Earnings Based) is 12.28%. Overall, Steel Dynamics has a GF Score™ of 86/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Steel Dynamics' Margin of Safety % (DCF Earnings Based) compare to RS and NUE?
Steel Dynamics' Margin of Safety % (DCF Earnings Based) of 12.28% can be compared against companies in the Steel industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Margin of Safety % (DCF Earnings Based) for a Steel company?
A good Margin of Safety % (DCF Earnings Based) depends on the Steel industry context. However, Margin of Safety % (DCF Earnings Based) should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Margin of Safety % (DCF Earnings Based) mean?
A high Margin of Safety % (DCF Earnings Based) can signal that a stock is expensive relative to its fundamentals. Margin of Safety % (DCF Earnings Based) is the percent difference between the current price and the intrinsic DCF Earnings price. View historical data on Steel Dynamics. Steel Dynamics's current Margin of Safety % (DCF Earnings Based) is 12.28%. 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 (STU:SD5) is currently considered Significantly Overvalued. The stock's GF Value™ is €137.36, compared to a current price of €220.30 — trading 60.4% above its estimated fair value. The current Margin of Safety % (DCF Earnings Based) is 12.28%. Steel Dynamics' overall GF Score™ is 86/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Margin of Safety % (DCF Earnings Based) calculated?
Margin of Safety % (DCF Earnings Based) is calculated from a company's financial statements. For Steel Dynamics (STU:SD5), the current Margin of Safety % (DCF Earnings Based) is 12.28% as of Jun. 26, 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 (STU:SD5) Overvalued in 2026?

Based on GuruFocus' analysis, Steel Dynamics stock appears to be overvalued. The current stock price of €220.30 is trading 60.4% above its estimated GF Value™ of €137.36. GuruFocus considers Steel Dynamics to be Significantly Overvalued.

Key valuation signals for STU:SD5:

  • Margin of Safety % (DCF Earnings Based): 12.28%
  • GF Value™: €137.36 vs. price of €220.30 (60.4% above fair value)
  • GF Score™: 86/100 with 4 warning signs

No single metric tells the full story. See the STU:SD5 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Steel Dynamics Business Description

Address 7575 West Jefferson Boulevard, Fort Wayne, IN, USA, 46804
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.
86GF Score

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Margin of Safety % (DCF Earnings Based) is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€220.30
Price
€137.36
GF Value