Steel Dynamics (FRA:SD5) GF Value Rank : 3 (As of May. 08, 2024)

View and export this data going back to 2005. Start your Free Trial

What is Steel Dynamics GF Value Rank?

Steel Dynamics has the GF Value Rank of 3.

The GF Value Rank is determined by the price-to-GF-Value (P/GF Value) ratio, a proprietary metric calculated based on historical multiples along with an adjustment factor based on a company's past returns and growth and future estimates of the business' performance.

GuruFocus found that for valuation, we cannot simply give stocks a better GF Value rank simply because they have a lower P/GF Value ratio. Backtesting shows that over the long term, the two worst-performing groups are the most expensive group (with the highest P/GF Value ratio) and the least expensive group (with the lowest P/GF Value ratio).

We can understand why the most expensive group underperforms. We were initially puzzled by the underperformance of the least expensive group, but we realized there is a reason why some stocks are super cheap. If they look too undervalued, it is often because the businesses behind them are poor quality. The market realized this and gave them low valuations. In a way, the market is efficient.

After multiple backtesting analyses, we granted the stocks in third-cheapest percentile the highest GF Value rank, as they have performed the best over a full market cycle. Stock performance is actually not as sensitive to valuation as it is to growth and profitability. On average, the companies in the 20%-50% valuation groups have similar performances. Therefore, we should avoid the most expensive and the least expensive stocks. We can be more tolerant of valuation.

Please click GF Score to see more details on the GF Score's 5 Key Aspects of Analysis.

Competitive Comparison of Steel Dynamics's GF Value Rank

For the Steel subindustry, Steel Dynamics's GF Value Rank, along with its competitors' market caps and GF Value Rank 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's GF Value Rank Distribution in the Steel Industry

For the Steel industry and Basic Materials sector, Steel Dynamics's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Steel Dynamics's GF Value Rank falls into.

Steel Dynamics GF Value Rank Related Terms

Thank you for viewing the detailed overview of Steel Dynamics's GF Value Rank provided by GuruFocus.com. Please click on the following links to see related term pages.

Steel Dynamics (FRA:SD5) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Steel » Steel Dynamics Inc (FRA:SD5) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

STLD:USA STLD:Mexico 1STLD:Italy

Address

7575 West Jefferson Boulevard, Fort Wayne, IN, USA, 46804

Website

https://www.steeldynamics.com

Steel Dynamics Inc operates scrap-based steel minimills with roughly 16 million tons of annual steel production capacity. The company's segment includes steel operations, metals recycling operations, and steel fabrication operations. It generates maximum revenue from the steel operations segment.

Steel Dynamics (FRA:SD5) Headlines

No Headlines