Gerdau SA ADR (GGB) is slightly undervalued and Steel Dynamics Inc (STLD) is overvalued.
Against our estimates of intrinsic value, GGB trades at the wider discount: a margin of safety of +19%, against -129% for STLD.
Values as of the 22 Sept 2026 close.
Discounting its cash flows at 9.6% (average of 3 methods) values the shares at $6.18; the price of $5.02 is 19% below that value, and 74% of that value comes from beyond year five.
Leak Score 49/100 on 3 of 12 signals
Discounting its cash flows at 11.0% (average of 3 methods) values the shares at $102.14; the price of $233.99 is 129% above that value, and 69% of that value comes from beyond year five.
Leak Score 45/100 on 10 of 12 signals
| Metric | GGB | STLD |
|---|---|---|
| Verdict | Slightly undervalued | Overvalued |
| Price | $5.02 | $233.99 |
| Intrinsic value | $6.18 | $102.14 |
| Margin of safety | +19% | -129% |
| Leak Score | 49/100 (3/12) | 45/100 (10/12) |
| Market cap | $6.2B | $33.5B |
| Revenue growth, 5 years | 8.0% | 13.6% |
| Operating margin | 7.4% | 10.0% |
| Net margin | 3.3% | 7.8% |
| Return on equity | 4.3% | 17.6% |
| Debt to equity | 0.28 | 0.44 |
| P/E | 22.9x | 21.2x |
| Forward P/E | 8.7x | 11.7x |
| P/B | 0.9x | 3.6x |
| Dividend yield | 4.1% | 0.9% |