Is Steel Dynamics, Inc. overvalued or undervalued?

As of 30 June 2025, the valuation grade for Steel Dynamics, Inc. has moved from expensive to fair. Based on the current metrics, the company appears fairly valued. Key ratios include a P/E ratio of 24, an EV to EBITDA of 16.16, and a Price to Book Value of 3.26. In comparison with peers, Steel Dynamics has a P/E of 27.44 for Nucor Corp. and 20.82 for Reliance, Inc., indicating that while Steel Dynamics is fairly valued, it is relatively higher than some peers.
In terms of performance, Steel Dynamics has outperformed the S&P 500 across multiple periods, with a year-to-date return of 22.59% compared to the S&P's 12.22%. This strong performance reinforces the narrative that the company is well-positioned within its industry.