Steel Dynamics Inc., FCFF calculation

US$ in thousands

12 months ended:	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Net income attributable to Steel Dynamics, Inc.	3,214,066)	550,822)	671,103)	1,258,379)	812,741)
Net (income) loss attributable to noncontrolling interests	32,748)	20,006)	6,797)	(2,574)	(6,945)
Net noncash charges	724,135)	479,578)	421,847)	421,097)	213,365)
Changes in certain assets and liabilities	(1,766,813)	(63,374)	296,543)	(261,433)	(279,555)
Net cash provided by operating activities	2,204,136)	987,032)	1,396,290)	1,415,469)	739,606)
Cash paid for interest, net of tax¹	79,701)	90,277)	104,142)	96,126)	90,570)
Capitalized interest on construction in progress assets, net of tax²	38,936)	19,335)	4,257)	2,248)	1,137)
Purchases of property, plant and equipment	(1,006,239)	(1,198,055)	(451,945)	(239,390)	(164,935)
Free cash flow to the firm (FCFF)	1,316,534)	(101,411)	1,052,744)	1,274,453)	666,378)

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).

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Item	Description	The company
FCFF	Free cash flow to the firm is the cash flow available to the Steel Dynamics Inc. suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made.	Steel Dynamics Inc. FCFF decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level.

Steel Dynamics Inc., interest paid, net of tax calculation

US$ in thousands

12 months ended:	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Effective Income Tax Rate (EITR)
EITR¹	22.90%	19.10%	22.60%	22.50%	33.10%
Interest Paid, Net of Tax
Cash paid for interest, before tax	103,374)	111,591)	134,550)	124,034)	135,381)
Less: Cash paid for interest, tax²	23,673)	21,314)	30,408)	27,908)	44,811)
Cash paid for interest, net of tax	79,701)	90,277)	104,142)	96,126)	90,570)
Interest Costs Capitalized, Net of Tax
Capitalized interest on construction in progress assets, before tax	50,500)	23,900)	5,500)	2,900)	1,700)
Less: Capitalized interest on construction in progress assets, tax³	11,565)	4,565)	1,243)	653)	563)
Capitalized interest on construction in progress assets, net of tax	38,936)	19,335)	4,257)	2,248)	1,137)

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).

¹ See details »

² 2021 Calculation
Cash paid for interest, tax = Cash paid for interest × EITR
= 103,374 × 22.90% = 23,673

³ 2021 Calculation
Capitalized interest on construction in progress assets, tax = Capitalized interest on construction in progress assets × EITR
= 50,500 × 22.90% = 11,565

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Steel Dynamics Inc., current EV/FCFF calculation, comparison to benchmarks

Selected Financial Data (US$ in thousands)
Enterprise value (EV)	18,879,145)
Free cash flow to the firm (FCFF)	1,316,534)
Valuation Ratio
EV/FCFF	14.34
Benchmarks
EV/FCFF, Competitors¹
Freeport-McMoRan Inc.	101.38
Newmont Corp.	193.82
EV/FCFF, Sector
Metals & Mining	15.42
EV/FCFF, Industry
Materials	23.15

Based on: 10-K (reporting date: 2021-12-31).

¹ Click competitor name to see calculations.

If the company EV/FCFF is lower then the EV/FCFF of benchmark then company is relatively undervalued.
Otherwise, if the company EV/FCFF is higher then the EV/FCFF of benchmark then company is relatively overvalued.

Steel Dynamics Inc., historical EV/FCFF calculation, comparison to benchmarks

	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Selected Financial Data (US$ in thousands)
Enterprise value (EV)¹	15,168,019)	10,864,840)	6,678,596)	9,665,432)	12,412,536)
Free cash flow to the firm (FCFF)²	1,316,534)	(101,411)	1,052,744)	1,274,453)	666,378)
Valuation Ratio
EV/FCFF³	11.52	—	6.34	7.58	18.63
Benchmarks
EV/FCFF, Competitors⁴
Freeport-McMoRan Inc.	12.13	46.43	—	—	—
Newmont Corp.	20.93	12.55	48.40	—	—
EV/FCFF, Sector
Metals & Mining	14.56	21.01	368.30	—	—
EV/FCFF, Industry
Materials	18.50	26.84	67.95	—	—

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).

¹ See details »

² See details »

³ 2021 Calculation
EV/FCFF = EV ÷ FCFF
= 15,168,019 ÷ 1,316,534 = 11.52

⁴ Click competitor name to see calculations.

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Steel Dynamics Inc. (NASDAQ:STLD)

Enterprise Value to FCFF (EV/FCFF)

Free Cash Flow to The Firm (FCFF)

Interest Paid, Net of Tax

Enterprise Value to FCFF Ratio, Current

Enterprise Value to FCFF Ratio, Historical