Worthington Steel stock: fair value
WSThe fair value of Worthington Steel under our model is $18.24, the price is 111% above.
The fair value is an estimate from our model, not a price target.
Daily figure as of 12 Nov 2026
Valuation signal
Significantly overvaluedClosing price of 11 Nov 2026, used by the daily score.
In our model the price counts as cheap below $13.03 and expensive above $30.41 (uncertainty high, based on the price swings of the past year).
Calculated with a cost of equity of 12.8%. At 13.8% the fair value would be $16.42, at 11.8% it would be $20.53.
Where the number comes from
From the cash-flow model alone; without earnings there is no industry value.
Ten-year cash-flow model from smoothed free cash flow and its past growth until it reaches 3.8%. Discounted at 12.8% (government bond yield 3.8% plus beta 2 times a risk premium of 4.5%); no analyst estimates were available.
Calculate with your own assumptionsThe calculation step by step
With these figures the cash flow model arrives at $18.24 per share: free cash flow for the next ten years, each year discounted to today at 12.8%, plus the terminal value for the years after. The table explains the calculation; it is not a recommendation.
Calculation as a table
| Year | Free cash flow | Source | Discount factor | Present value (discounted at 12.8%) |
|---|---|---|---|---|
| 2027 | $84.32M | extrapolated at 1.8% | 0.8869 | $74.78M |
| 2028 | $86.32M | extrapolated at 2.4% | 0.7866 | $67.9M |
| 2029 | $88.75M | extrapolated at 2.8% | 0.6977 | $61.92M |
| 2030 | $91.52M | extrapolated at 3.1% | 0.6188 | $56.63M |
| 2031 | $94.57M | extrapolated at 3.3% | 0.5488 | $51.9M |
| 2032 | $97.86M | extrapolated at 3.5% | 0.4867 | $47.63M |
| 2033 | $101.37M | extrapolated at 3.6% | 0.4317 | $43.76M |
| 2034 | $105.08M | extrapolated at 3.7% | 0.3829 | $40.23M |
| 2035 | $108.98M | extrapolated at 3.7% | 0.3396 | $37.01M |
| 2036 | $113.06M | extrapolated at 3.8% | 0.3012 | $34.05M |
| Step | Value |
|---|---|
| Sum of present values (ten years) | $515.82M |
| Terminal value: cash flow 2036 × (1 + 3.8%) / (12.8% − 3.8%) | $1.32B |
| Present value of terminal value (× 0.3012) | $396.36M |
| Equity value (sum plus present value of terminal value) | $912.18M |
| Shares (diluted) | 50.00M |
| Value per share (equity value divided by shares) | $18.24 |
| Fair value (from the cash flow model alone) | $18.24 |
The model uses free cash flow after interest, which belongs to shareholders, discounted at the cost of equity. Net debt is therefore not deducted again.
Data status and sources
- Score
- Daily value of 12 Nov 2026, recalculated nightly
- Price
- Closing price of 12 Nov 2026
- Latest annual report
- Fiscal year 2026, period end 31 May 2026
- Source
- Financial statements, ratios and prices from Financial Modeling Prep (FMP), based on the company's reports. MEQIRI calculates the score and fair value from them.
Mandatory disclosures for this rating
- ; time horizon around 12 months
- Rated Weak since 12 Nov 2026, previously Neutral
- Valuation signal Overvalued since 7 Nov 2026
- End-of-day prices, metrics cached for up to 24 hours
- Score and fair value are estimates from a disclosed model. They are not facts and not a price target.
- Produced by SSM Ventures UG (haftungsbeschränkt), responsible person Sven Brostmeyer, Managing Director, automatically according to the disclosed model.
- Not investment advice. Losses up to and including a total loss are possible. Personal circumstances are not considered.