Is Steel Dynamics, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Steel Dynamics, Inc. moved from very expensive to fair. The company is currently fairly valued based on its financial metrics. Key valuation 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, Nucor Corp. has a P/E of 27.41 and an EV to EBITDA of 14.03, while Reliance, Inc. shows a P/E of 20.82 and an EV to EBITDA of 13.07, indicating that Steel Dynamics is positioned competitively within its peer group.
In terms of recent performance, Steel Dynamics has outperformed the S&P 500 on a year-to-date basis with a return of 25.14% compared to the S&P 500's 13.30%. However, over the past year, it lagged behind the index, returning 5.70% versus 14.08%. Overall, the company's valuation appears justified given its competitive ratios and performance metrics.