Gerdau GGB
BrazilBasic Materials · SteelUSD
5.90 USD (+17.4%)
5 analysts
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Gerdau S.A. is a Brazilian steel producer that manufactures and sells steel for the construction, industrial, and automotive sectors, with operations in Latin America, North America, and other regions.
Key points
from its scores- ✓Good share-price trend8.4
- ✓Attractive dividend7.7
- ✓Very solid balance sheet7.6
- ✕Unfavourable risk and backdrop3.3
- ✕Little competitive advantage3.7
AI analysis
bottom line, main risk, context and newsValuation and balance sheet are solid, but the cyclical peak and governance risks in Brazil advise caution before adding positions.
Gerdau shows solid financial health (Net Debt/EBITDA of 0.97) and attractive valuation (forward P/E of 8.72), but its 73.50% earnings growth reflects a cyclical steel peak that is likely unsustainable, and quality is limited by an ROE of 4.18% and a free cash flow conversion of 26.50%.
The main risk is exposure to Brazil, with weak institutional governance and limited minority shareholder protection, which may affect value distribution to shareholders despite reasonable operational fundamentals.
Context and risks
Gerdau operates in Brazil, a country with weak institutional governance and limited minority shareholder protection, adding relevant governance risk. Additionally, its steel business is energy-intensive and depends on maritime routes for exports, exposed to European gas volatility and geopolitical tensions that can affect costs and logistics.
Is Gerdau stock cheap or expensive?
at the analysis dateOn P/E and EV / EBITDA, it trades in line with the Basic Materials median (within 15%).
| Multiple | Company | Sector | Difference |
|---|---|---|---|
| P/E | 22.8 | 19.2 | +19% |
| EV / EBITDA | 5.9 | 10.0 | −41% |
| Price / book | 0.9 | 2.3 | −59% |
| Price / sales | 0.7 | 2.2 | −68% |
Sector: median of the 141 Basic Materials companies analysed. In bold, the multiples used for the comparison.
Valuation score: 7.2 out of 10 (median for Basic Materials: 5.8).
Average analyst target: 5.90 USD, +17.4% versus the price.
Classic formulas with standard assumptions (10.0% growth, 8-9% discount rate). Indicative only: they change a lot with the assumptions and are not a recommendation.
Work out its fair value yourself →How much would you have made investing every month? →
Comparing it with its sector does not say whether it is a good buy: this is not investment advice.
Score by category
0 to 10 · hover overtap each one to see what it measuresKey metrics
at the analysis date · compared with the Basic Materials medianValuation
- P/E
- 22.8
- Forward P/E
- 8.7
- EV / EBITDA
- 5.9
- Price / book
- 0.9
- Price / sales
- 0.7
- PEG
- 0.25
- Market cap
- 9.8B USD
- Enterprise value
- 59.2B BRL
Profitability
- ROE
- 4.2%
- ROA
- 5.0%
- ROIC (approx.)
- 12.9%
- Gross margin
- 13.1%
- Operating margin
- 12.7%
- Net margin
- 3.2%
- Free cash flow
- 2.6B BRL
- FCF yield
- 5.4%
- Cash conversion
- 26%
Solvency
- Total debt
- 15.2B BRL
- Net debt
- 9.7B BRL
- Cash
- 5.4B BRL
- EBITDA
- 10.0B BRL
- Net debt / EBITDA
- 0.97
- Debt / equity
- 28.23
- Current ratio
- 2.87
- Quick ratio
- 1.24
Growth
- Revenue growth
- +2.0%
- Earnings growth
- +73.5%
- EPS (TTM)
- 0.22 USD
- EPS (forward)
- 0.58 USD
Dividend
- Dividend yield
- 3.6%
- Payout
- 58.8%
Risk and market
- Beta
- 0.89
- Analyst consensus
- Buy (5)
- Target price
- 5.90 USD
- 52-week range
- 3.13 – 5.48
Recent news
All GGB news →Compare it with its sector
All 141 in Basic Materials →Frequently asked questions about Gerdau
Is Gerdau stock cheap or expensive?
On P/E and EV / EBITDA, it trades in line with the Basic Materials median (within 15%). Valuation score: 7.2 out of 10 (median for Basic Materials: 5.8). Average analyst target: 5.90 USD, +17.4% versus the price. This is not investment advice.
What score does Gerdau get on MeridIAn Screener?
It scores 5.5 out of 10, rank 1,402 of 2,130 (better than 32% of the companies analysed). Its strongest category is Momentum (8.4) and its weakest, Risk & Context (3.3). Analysis of 08/10/2026.
What is Gerdau's P/E ratio?
Its P/E is 22.8: the share price equals 22.8 times earnings per share over the last 12 months. The Basic Materials median is 19.2. Based on the earnings analysts expect, the forward P/E is 8.7.
How much is Gerdau worth on the stock market?
Its market capitalisation is 9.8B USD and its enterprise value, debt included, is 59.2B USD.
How much debt does Gerdau have?
Its net debt (debt minus cash) is 9.7B BRL. That is 0.97 times its EBITDA; the Basic Materials median is 1.41.
Does Gerdau pay a dividend?
Yes: its dividend yield is 3.59% and it pays out 59% of its earnings.
How has Gerdau stock performed over the last year?
It has risen 63.0% over the last year, excluding dividends. Over the last 52 weeks it has traded between 3.13 and 5.48 USD. Past performance does not guarantee future results.
What do analysts think of Gerdau?
5 analysts cover it; their average recommendation is “Buy” and their average target is 5.90 USD (+17.4% versus the price). It is an estimate, not market data.