Enterprise Value (EV)
Current Enterprise Value (EV)
Steel Dynamics Inc., current enterprise value calculation
| Current share price (P) | $98.04 |
| No. shares of common stock outstanding | 175,571,409 |
| US$ in thousands | |
| Common equity (market value)1 | 17,213,021) |
| Add: Noncontrolling interests (per books) | (195,884) |
| Total equity | 17,017,137) |
| Add: Current maturities of long-term debt (per books) | 97,174) |
| Add: Long-term debt, excluding current maturities (per books) | 3,008,702) |
| Total equity and debt | 20,123,013) |
| Less: Cash and equivalents | 1,243,868) |
| Less: Short-term investments | —) |
| Enterprise value (EV) | 18,879,145) |
Based on: 10-K (reporting date: 2021-12-31).
1 Common equity (market value) = Share price × No. shares of common stock outstanding
= 98.04 × 175,571,409
Historical Enterprise Value (EV)
Steel Dynamics Inc., EV calculation
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 Data adjusted for splits and stock dividends.
2 Closing price as at the filing date of Steel Dynamics Inc. Annual Report.
3 2021 Calculation
Common equity (market value) = Share price × No. shares of common stock outstanding
= 70.58 × 191,299,162
The enterprise value (EV) of the entity exhibited a significant U-shaped trajectory between 2017 and 2021, characterized by a substantial contraction followed by a robust recovery and expansion. The value declined from 12.41 billion US$ in 2017 to a period low of 6.68 billion US$ in 2019, before ascending to a peak of 15.17 billion US$ by the end of 2021.
- Enterprise Value Dynamics
- A marked contraction occurred between 2017 and 2019, during which the enterprise value decreased by approximately 46%. This decline was reversed starting in 2020, with the value increasing by 63% in 2020 and continuing to rise through 2021. By the end of the analyzed period, the enterprise value exceeded its 2017 levels by approximately 22%.
- Market vs. Book Value Correlation
- A high degree of correlation is observed between the market value of common equity and total equity. Both metrics followed an identical trend, dipping in 2019 and peaking in 2021. The proximity of the market value to the total equity suggests that the market valuation remained closely aligned with the book value of the company's equity throughout the five-year period.
- Capitalization and Valuation Trends
- The total equity and debt figures mirrored the movements of the enterprise value, decreasing from 13.44 billion US$ in 2017 to 8.32 billion US$ in 2019, and subsequently increasing to 16.41 billion US$ in 2021. The fact that the enterprise value remained consistently lower than the total equity and debt suggests the presence of significant cash or cash equivalents that offset the debt component in the EV calculation.
The overall financial profile indicates a period of volatility ending in a strong capital appreciation phase. The synchronized movement of market equity, book equity, and total enterprise value reflects a comprehensive shift in the entity's valuation and capital structure, culminating in a strengthened financial position by the end of 2021.
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