Price to Earnings (P/E)
since 2005
Calculation
Steel Dynamics Inc., P/E, long-term trends, calculation
| P/E | = | Share price1, 2, 3 | ÷ | Earnings per share1 (EPS) | EPS1 | = | Net income (loss) attributable to Steel Dynamics, Inc.1 (in thousands) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Feb 28, 2022 | 4.20 | = | 70.58 | ÷ | 16.80 | 16.80 | = | 3,214,066 | ÷ | 191,299,162 | |
| Mar 1, 2021 | 16.86 | = | 44.01 | ÷ | 2.61 | 2.61 | = | 550,822 | ÷ | 211,005,100 | |
| Feb 27, 2020 | 8.56 | = | 26.89 | ÷ | 3.14 | 3.14 | = | 671,103 | ÷ | 213,554,449 | |
| Feb 27, 2019 | 6.76 | = | 37.95 | ÷ | 5.62 | 5.62 | = | 1,258,379 | ÷ | 224,105,246 | |
| Feb 27, 2018 | 13.80 | = | 47.51 | ÷ | 3.44 | 3.44 | = | 812,741 | ÷ | 236,071,369 | |
| Feb 28, 2017 | 23.21 | = | 36.60 | ÷ | 1.58 | 1.58 | = | 382,115 | ÷ | 242,349,757 | |
| Feb 26, 2016 | — | = | 18.11 | ÷ | -0.54 | -0.54 | = | -130,311 | ÷ | 243,186,659 | |
| Mar 2, 2015 | 27.78 | = | 18.06 | ÷ | 0.65 | 0.65 | = | 157,024 | ÷ | 241,529,877 | |
| Mar 3, 2014 | 20.27 | = | 17.21 | ÷ | 0.85 | 0.85 | = | 189,314 | ÷ | 223,004,874 | |
| Feb 27, 2013 | 20.34 | = | 15.11 | ÷ | 0.74 | 0.74 | = | 163,551 | ÷ | 220,114,512 | |
| Feb 27, 2012 | 11.70 | = | 14.86 | ÷ | 1.27 | 1.27 | = | 278,120 | ÷ | 219,035,240 | |
| Feb 23, 2011 | 28.70 | = | 18.53 | ÷ | 0.65 | 0.65 | = | 140,709 | ÷ | 217,929,783 | |
| Feb 22, 2010 | — | = | 16.80 | ÷ | -0.04 | -0.04 | = | -8,184 | ÷ | 216,333,971 | |
| Feb 27, 2009 | 3.28 | = | 8.35 | ÷ | 2.55 | 2.55 | = | 463,386 | ÷ | 181,993,610 | |
| Feb 27, 2008 | 14.45 | = | 30.23 | ÷ | 2.09 | 2.09 | = | 394,566 | ÷ | 188,563,492 | |
| Feb 26, 2007 | 9.81 | = | 20.07 | ÷ | 2.05 | 2.05 | = | 396,707 | ÷ | 193,879,742 | |
| Mar 9, 2006 | 9.10 | = | 11.56 | ÷ | 1.27 | 1.27 | = | 221,785 | ÷ | 174,576,248 |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
1 US$
2 Data adjusted for splits and stock dividends.
3 Closing price as at the filing date of Steel Dynamics Inc. Annual Report.
The price-to-earnings (P/E) ratio from 2006 to 2022 exhibits substantial volatility, reflecting a cyclical relationship between earnings performance and market valuation.
- Earnings Volatility and Valuation Gaps
- Significant disruptions in the P/E trend occurred in 2010 and 2016. During these years, negative earnings per share (EPS) rendered the P/E ratio non-calculable. These periods of loss coincide with broader fluctuations in share price, illustrating the high sensitivity of the valuation multiple to operational profitability.
- Period of Multiple Expansion
- Between 2011 and 2015, a trend of valuation expansion is observed. P/E ratios remained elevated, frequently exceeding 20x and reaching a peak of 28.70 in 2011. This indicates a period where the market priced the equity at a significant premium relative to its immediate earnings output.
- Recent Valuation Compression
- A pronounced compression of the P/E ratio is evident from 2018 through 2022. Despite the share price ascending to a period high of 70.58 US$ in 2022, the P/E ratio declined to 4.20. This contraction is driven by an aggressive surge in EPS, which grew from 3.44 US$ in 2018 to 16.80 US$ in 2022, showing that earnings growth significantly outpaced share price appreciation.
The overall trajectory indicates a shift from high-multiple volatility in the first decade of the data to a state of high earnings efficiency in the most recent years, where the lowest P/E ratio in the series was recorded simultaneously with the highest recorded share price and EPS.
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Comparison to Competitors
Steel Dynamics Inc., P/E, long-term trends, comparison to competitors
| Steel Dynamics Inc. | Freeport-McMoRan Inc. | |
|---|---|---|
| Feb 28, 2022 | 4.20 | 14.75 |
| Mar 1, 2021 | 16.86 | 80.11 |
| Feb 27, 2020 | 8.56 | — |
| Feb 27, 2019 | 6.76 | 6.84 |
| Feb 27, 2018 | 13.80 | 14.69 |
| Feb 28, 2017 | 23.21 | — |
| Feb 26, 2016 | — | — |
| Mar 2, 2015 | 27.78 | — |
| Mar 3, 2014 | 20.27 | 13.08 |
| Feb 27, 2013 | 20.34 | 10.13 |
| Feb 27, 2012 | 11.70 | 9.01 |
| Feb 23, 2011 | 28.70 | 11.62 |
| Feb 22, 2010 | — | 12.81 |
| Feb 27, 2009 | 3.28 | — |
| Feb 27, 2008 | 14.45 | 13.94 |
| Feb 26, 2007 | 9.81 | 8.11 |
| Mar 9, 2006 | 9.10 | 10.75 |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Industry (Materials)
Steel Dynamics Inc., P/E, long-term trends, comparison to industry (materials)
| Steel Dynamics Inc. | Materials | |
|---|---|---|
| Feb 28, 2022 | 4.20 | 28.21 |
| Mar 1, 2021 | 16.86 | 47.50 |
| Feb 27, 2020 | 8.56 | 49.13 |
| Feb 27, 2019 | 6.76 | 17.75 |
| Feb 27, 2018 | 13.80 | 22.15 |
| Feb 28, 2017 | 23.21 | — |
| Feb 26, 2016 | — | — |
| Mar 2, 2015 | 27.78 | 69.44 |
| Mar 3, 2014 | 20.27 | 17.83 |
| Feb 27, 2013 | 20.34 | 15.06 |
| Feb 27, 2012 | 11.70 | 12.60 |
| Feb 23, 2011 | 28.70 | 14.83 |
| Feb 22, 2010 | — | 14.87 |
| Feb 27, 2009 | 3.28 | — |
| Feb 27, 2008 | 14.45 | 15.68 |
| Feb 26, 2007 | 9.81 | 13.52 |
| Mar 9, 2006 | 9.10 | 15.84 |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).