Skip to content

Steel Dynamics Inc (STLD) — WACC Analysis

WACC Breakdown

Steel Dynamics Inc (STLD) has a weighted average cost of capital (WACC) of 8.5%. The cost of equity is 9.3%, derived from a beta of 1.12 and a risk-free rate of 4.7%. The after-tax cost of debt is 2.1%. The capital structure is 88.9% equity and 11.1% debt.

Interpretation

A WACC of 8.5% is moderate, reflecting the market's balanced risk assessment of Steel Dynamics Inc.

Investors can compare STLD's WACC of 8.5% against industry peers to gauge its relative financing costs. A beta of 1.12 reflects the stock's volatility relative to the broader market.

DeepViews
VALUATION

STLD WACC: 8.50% for Steel Dynamics Inc

Current inputs imply a 9.30% cost of equity and a 2.70% pre-tax cost of debt. Use this discount rate as a starting point for DCF validation.

[01]Current Market Data
Loading market data...
[02]
WACC Calculation Process
1
Market Data Loaded
2
Company Data Fetched
3
Beta Calculated (5Y)
4
Inputs Auto-Populated
5
WACC Calculated
[03]
Step 2: Enter Ticker Symbol
Quick search:
Step 4: Review Auto-Populated WACC Inputs

Values are automatically populated from real data. You can adjust them manually if needed.

4.30%
1.000
4.23%
5.00%
21.00%
70.00%
Debt: 30.00%Equity: 70.00%

Please enter a valid company ticker to calculate WACC

Steel Dynamics Inc Common Stock (STLD) WACC Results
Weighted Average Cost of Capital
8.50%
Cost of Equity
9.30%
Risk-Free Rate4.73%
Beta1.12
Market Risk Premium4.23%
Cost of Debt
2.13%
Pre-Tax Cost of Debt2.70%
Tax Rate21.00%
Tax Shield0.57%
Capital Structure
Equity: 88.85%($33.34B)
Debt: 11.15%($4182.14M)
Equity Component
8.26%
88.85% × 9.30%
Debt Component
0.24%
11.15% × 2.13%

Steel Dynamics Inc (STLD) WACC in context

Steel Dynamics Inc (STLD) currently screens with an estimated WACC of 8.50%. That blends a 9.30% cost of equity, a 2.70% pre-tax cost of debt, and a 88.85% equity weight into the discount rate you would typically use in a DCF model.

falls into a common range for established public companies and is a practical DCF starting point.

What STLD WACC implies

A 8.50% discount rate falls into a common range for established public companies and is a practical DCF starting point.

How this page calculates STLD

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 1.12 and equity accounts for 88.85% of capital.

What to do next

Validate business quality on the company page, then carry the same discount-rate assumptions into the DCF page to test fair value sensitivity.

Disclaimer: This is not financial advice. Data sourced from SEC EDGAR and Polygon.io. Past performance does not guarantee future results. Always conduct your own research before making investment decisions.