Steel manufacturer/distributor - valuation

by a searcher from Wilfrid Laurier University

1 year ago

Hi all - anyone have experience in the steel space? Specifically interested in learning industry trends and if there are any specific valuation methods that apply to steel businesses. Please feel free to comment below or dm. Thanks in advance!

1 like
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2 comments

searcher from Wilfrid Laurier University

Thanks Sam. Agree. Recent rises in steel price have driven increases in revenues. Important to see corresponding increases in volume to understand what the business is actually doing. Ability to pass along higher input costs also important.

10 months ago | like reply | 0 likes

searcher from University of Virginia-Darden - Darden School of Business

Looking at one right now. The big curveball in the valuation is the risk associated with the price of steel. I have decent connections in the industry with large distributors who say that the current price of steel is the new normal and it isn't going down to pre-pandemic levels. But what happens to your cash flow / debt coverage if it does?https://beta.bls.gov/dataViewer/view/timeseries/WPU10760102;jsessionid=E85B2520B02B46E9265F40FC6256E283

10 months ago | like reply | 0 likes

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