Gerdau SA ADR (GGB) is slightly undervalued and Ternium SA ADR (TX) is slightly undervalued.
Against our estimates of intrinsic value, GGB trades at the wider discount: a margin of safety of +19%, against +19% for TX.
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 8.3% (average of 3 methods) values the shares at $69.30; the price of $56.43 is 19% below that value, and 79% of that value comes from beyond year five.
Leak Score 30/100 on 2 of 12 signals
| Metric | GGB | TX |
|---|---|---|
| Verdict | Slightly undervalued | Slightly undervalued |
| Price | $5.02 | $56.43 |
| Intrinsic value | $6.18 | $69.30 |
| Margin of safety | +19% | +19% |
| Leak Score | 49/100 (3/12) | 30/100 (2/12) |
| Market cap | $6.2B | $11.1B |
| Revenue growth, 5 years | 8.0% | 11.9% |
| Operating margin | 7.4% | 7.8% |
| Net margin | 3.3% | 4.4% |
| Return on equity | 4.3% | 5.7% |
| Debt to equity | 0.28 | 0.25 |
| P/E | 22.9x | 15.9x |
| Forward P/E | 8.7x | 7.5x |
| P/B | 0.9x | 0.9x |
| Dividend yield | 4.1% | 4.3% |