Nucor Corporation Quarterly Valuation – March 2015 $NUE

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Nucor Corporation is suitable for the Enterprising Investor, but not the more conservative Defensive Investor, who is concerned with the insufficient earnings growth or stability over the last ten years, as well as the high PEmg ratio. The Enterprising Investor, on the other hand, is only concerned by the lack of earnings growth over the last five years. As a result, the Enterprising Investor should feel very comfortable proceeding to the next part of the analysis, which is a determination of the company’s intrinsic value.

From a valuation side of things, the company has seen its EPSmg (normalized earnings) drop from $2.12 in 2010 to only $1.82 for 2014. This demonstrated lack of growth does not support the market’s implied estimate of 8.87%. As a result, the ModernGraham valuation model returns an estimate of intrinsic value below the market price at this time, and the company appears to be overvalued by the market.

Be sure to check out previous ModernGraham valuations of Nucor Corporation (NUE) for a greater perspective!

Read the full valuation on Seeking Alpha!

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Disclaimer: The author did not hold a position in Nucor Corporation (NUE) at the time of publication and had no intention of changing that position within the next 72 hours. Logo taken from Wikipedia for the sole purpose of identifying the company; this article is not affiliated with the company in any manner.


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