As of June 19, 2025, Nucor Corp's estimated intrinsic value ranges from $78.42 to $231.61 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $159.39 | +26.3% |
| Discounted Cash Flow (5Y) | $151.56 | +20.1% |
| Dividend Discount Model (Multi-Stage) | $143.14 | +13.4% |
| Dividend Discount Model (Stable) | $78.42 | -37.9% |
| Earnings Power Value | $231.61 | +83.6% |
Is Nucor Corp (NUE) undervalued or overvalued?
With the current market price at $126.18, the stock appears to be moderately undervalued.
Intrinsic value represents the "true" worth of a company based on its fundamentals rather than market sentiment. We've employed multiple methodologies to triangulate Nucor Corp's intrinsic value, including:
The cost of capital is a critical factor in valuation models, representing the required return for investors.
| WACC Component | Low | High |
|---|---|---|
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.54 | 0.69 |
| Cost of equity | 6.4% | 8.7% |
| Cost of debt | 5.0% | 5.0% |
| Tax rate | 20.7% | 21.4% |
| Debt/Equity ratio | 0.25 | 0.25 |
| After-tax WACC | 5.9% | 7.8% |
Our DCF model projects cash flows over 5-year and 10-year horizons, with the following key assumptions:
| DCF Model | Fair Value | Enterprise Value | % from Terminal Value |
|---|---|---|---|
| 5-Year Growth | $152 | $39,695M | 76.9% |
| 10-Year Growth | $159 | $41,504M | 58.4% |
| 5-Year EBITDA | $146 | $38,485M | 76.2% |
| 10-Year EBITDA | $155 | $40,436M | 57.3% |
The DDM values a company based on its expected future dividend payments. We used two approaches:
EPV assesses a company's value based on its current normalized earnings power, assuming no growth.
| EPV Component | Value |
|---|---|
| Normalized Earnings | $3,894M |
| Discount Rate (WACC) | 7.8% - 5.9% |
| Enterprise Value | $50,174M - $66,163M |
| Net Debt | $4,724M |
| Equity Value | $45,450M - $61,439M |
| Outstanding Shares | 231M |
| Fair Value | $197 - $266 |
| Selected Fair Value | $231.61 |
| Metric | Value |
|---|---|
| Market Capitalization | $29116M |
| Enterprise Value | $33840M |
| Trailing P/E | 21.76 |
| Forward P/E | 12.07 |
| Trailing EV/EBITDA | 6.85 |
| Current Dividend Yield | 183.92% |
| Dividend Growth Rate (5Y) | 1.51% |
| Debt-to-Equity Ratio | 0.25 |
To determine the most reliable intrinsic value estimate, we weigh each valuation method based on:
| Valuation Method | Weight | Weighted Value |
|---|---|---|
| Discounted Cash Flow (10Y) | 30% | $47.82 |
| Discounted Cash Flow (5Y) | 25% | $37.89 |
| Dividend Discount Model (Multi-Stage) | 20% | $28.63 |
| Dividend Discount Model (Stable) | 15% | $11.76 |
| Earnings Power Value | 10% | $23.16 |
| Weighted Average | 100% | $149.26 |
Based on our comprehensive valuation analysis, Nucor Corp's weighted average intrinsic value is $149.26, which is approximately 18.3% above the current market price of $126.18.
Key investment considerations:
Given these factors, we believe Nucor Corp is currently moderately undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.