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BlueScope Steel Limited (BSL) Fair Value & Analysis

Basic Materials · AU · Market cap A$14.2B

BS BlueScope Steel Limited BSL · AU
PriceA$35.11
Fair ValueA$6.50
Upside-81.5%
Quality60/100
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Mixed Growth
Thin margins · 1.8% net margin
Low debt · generates free cash flow
2.97% dividend yield
Ranks above peers (9/15)
Narrow moat 27/100
Evidence: Medium Range A$4.88 – A$8.12 Share as image

Fair value as of: Jul 16, 2026

From 25 valuation models · updated 22 days ago

Fair value updated Jul 16, 2026, revised from A$3.25 to A$6.50 (+100.0%) since Jul 15, 2026. Share price +11.2% over the past month.

A solid business, but screening 81% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (A$8.12). The favourable scenario is already priced in.
  • Solid but not exceptional quality (60/100) and above fair value, neither a clear bargain nor a standout compounder.
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Price vs Fair Value (5 years)

A$35.11 A$13.05 Fair Value A$6.50 May 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 16, 2026.

How to read this chart

60‑month range A$13.05 – A$35.11 · fair‑value band A$4.88 – A$8.12 · the A$35.11 price screens above the A$6.50 fair value. Dashed = 300-day average. As of Jul 16, 2026.

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Analysis

BlueScope Steel Limited (BSL) currently trades at A$35.11, while our model-based Fair Value estimate is A$6.50, implying the stock looks roughly 81.5% overvalued today. We read business quality at 60/100 (solid quality), in the Basic Materials sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: medium).

Over the trailing twelve months, BlueScope Steel Limited generated revenue of A$16.6B at a net margin of 1.8%. Revenue grew 4.0% year over year. It earns a return on equity of 3.4%. Net debt stands at A$28.4M. Fundamentals as of Jul 16, 2026

Our scenario range runs from A$4.88 (bear case) to A$8.12 (bull case); at A$35.11, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades near its 52-week high and 83% above its 52-week low, currently above its 200-day average. For context, the median of 10 Basic Materials peers we cover trades at -25% fair-value upside, at -81%, BSL screens richer than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model BearBaseBull Evidence
Highest evidence
Growth DCF A$3.02 A$4.07 A$5.56 80
Residual Income A$8.28 A$7.77 A$5.56 76
Rev-Margin DCF A$2.20 A$2.90 A$3.70 74
All 25 models by family
DCF Models
FCF DCF A$2.97 A$4.15 A$5.90 38
5Y Revenue Exit A$2.20 A$2.88 A$3.71 39
5Y EBITDA Exit A$6.73 A$11.20 A$16.40 41
5Y P/E Exit A$2.32 A$3.09 A$3.88 38
10Y Revenue Exit A$2.43 A$3.10 A$3.95 36
10Y EBITDA Exit A$5.33 A$8.83 A$13.49 37
10Y P/E Exit A$2.54 A$3.25 A$4.08 35
Earnings-Based
Graham-Dodd A$0.6470 A$1.85 A$2.44 54
Lynch FV A$0.3783 A$0.5425 A$0.7018 50
PEG = 1.0 A$0.3783 A$0.5425 A$0.7018 46
EPV A$1.30 A$1.40 A$1.49 59
Dividend Discount
Gordon GGM A$3.75 A$7.80 A$12.38 70
DDM Multi-Stage A$3.75 A$5.98 A$8.19 61
Multiples
P/E Multiple A$1.43 A$1.91 A$2.38 63
P/S Multiple A$1.21 A$1.62 A$2.02 58
P/B Multiple A$1.21 A$1.62 A$2.02 55
EV/EBIT A$2.39 A$2.96 A$3.52 53
EV/EBITDA A$9.83 A$12.88 A$15.92 54
EV/Revenue A$1.84 A$2.33 A$2.82 43
Asset-Based
NCAV (Graham) A$6.06 A$8.12 A$12.12 50
Growth DCF
Growth DCF A$3.02 A$4.07 A$5.56 80
Rev-Margin DCF A$2.20 A$2.90 A$3.70 74
Economic Profit
Residual Income A$8.28 A$7.77 A$5.56 76
ROIC Compounder A$1.30 A$1.40 A$1.49 72
Growth Earnings
Growth-Adj P/E A$1.15 A$1.65 A$2.14 68

Widest divergence: Asset-Based (A$8.12) versus Earnings-Based (A$0.5425). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) A$16.6B
Revenue growth (YoY) +4.0%
Net margin 1.8%
Return on equity 3.4%
Free cash flow A$180M FY2025
P/E ratio 56.8
More key figures
Operating margin 6.3%
EPS (TTM) A$0.5700
Dividend yield 3.0%
EPS growth (YoY) +119%
Net debt A$28.4M FY2025

Figures from reported company fundamentals · as of Jul 16, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 60/100

Of which business quality 54 · Market factors (momentum, volatility) 74

Profitability 40
Margins and returns on capital today
Quality Growth 11
Are margins and returns improving?
Cashflow 40
Earnings quality: real cash, not paper profit
Fin. Strength 66
Balance sheet, leverage, solvency risk
Investment 85
Disciplined investing over empire-building
Low Volatility 53
Calm price path (market factor)
Momentum 73
Price trend over the last 3–12 months (market factor)
52W Momentum 100
Distance to the 52-week high (market factor)
Net Issuance 100
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

BlueScope Steel Limited engages in the production and marketing of metal-coated and painted steel building products in Australia, New Zealand, Asia, and North America.

Full company description

BlueScope Steel Limited engages in the production and marketing of metal-coated and painted steel building products in Australia, New Zealand, Asia, and North America. The company operates through five segments: Australian Steel Products, North Star BlueScope Steel, Buildings and Coated Products North America, Coated Products Asia, and New Zealand & Pacific Islands. It offers coated and painted flat steel products, including zinc/aluminium alloy coated steel; and galvanized and zinc/aluminium alloy coated pre-painted steel, as well as manufactures pipes and tubes. The company is also involved in the supply of hot rolled coils; the provision of engineered building solutions, such as coil paintings; and the development of industrial properties, primarily warehouses and distribution centres. In addition, it provides metal coating, painting, and steel building solutions; and steel slabs, billets, plates, cold-rolled coils, reinforcing coils, rods, wires, and bars, as well as value-added coated and painted steel solutions, as well as operates ferrous and non-ferrous scrap metal recyclers. Further, the company offers its products under the COLORBOND, COLORSTEEL, TRUECORE, ZINCALUME, TRU-SPEC, LYSAGHT, FIELDERS, Orrcon Steel, BUTLER, and VARCO PRUDEN brand names for residential and non-residential building, construction, automotive, manufacturing, infrastructure, packaging, transport, agriculture, and mining industries. It also exports its products. The company was formerly known as BHP Steel Limited and changed its name to BlueScope Steel Limited in November 2003. BlueScope Steel Limited was founded in 1885 and is headquartered in Melbourne, Australia.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

BlueScope Steel Limited reported revenue of A$16.3B in FY2025 versus A$12.9B in FY2021, a compound +6.0%/yr. Reported net income was A$83.8M in FY2025, compounding −48.5%/yr from FY2021.

Growth Quality 64/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
A$16.3B
Latest YoY
−4.7%
Avg. growth/yr (3Y)
−5.1%
Avg. growth/yr (5Y)
+7.6%
Avg. growth/yr (24Y)
+5.1%
Revenue +6.0%/yr
FY21 A$12.9B
FY22 A$19.0B
FY23 A$18.2B
FY24 A$17.1B
FY25 A$16.3B
Net income −48.5%/yr
FY21 A$1.2B
FY22 A$2.8B
FY23 A$1.0B
FY24 A$806M
FY25 A$83.8M

BSL screens 81% overvalued. Compare with Tata Steel Limited →

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Cite: Fair Value Calculator (2026). "BlueScope Steel Limited Fair Value". https://www.fairvalue-calculator.com/stock/BSL

Peer Group

Steel · 381 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 60 · Top 25%
Fair Value upside −82% · Bottom 25%
Return on equity (TTM) 3% · Below median
Return on assets 4% · Above median
Net margin (TTM) 2% · Below median
Operating margin (TTM) 6% · Above median
Revenue growth 4% · Above median
Dividend yield (TTM) 3.0% · Above median
Debt / equity 0.02× · Lower than median

Valuation Multiples vs Steel median · lower = cheaper

P/E (TTM) 56.8× · Pricier than 75% of peers
P/B 0.94× · Cheaper than median
P/S (TTM) 0.60× · Pricier than median
P/FCF 55.8× · Pricier than 75% of peers
EV/EBITDA 6.1× · Cheaper than median
PEG 0.03× · Cheaper than 75% of peers

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 0 · sector 21
FUTURE 20 · sector 2
PAST 14 · sector 14
HEALTH 99 · sector 95
DIVIDEND 59 · sector 41

VALUE 0: the price sits above our fair-value range.

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Steel stocks, each showing price versus our Fair Value estimate (as of Jul 16, 2026).

Stock Price Fair Value vs Fair Value
Tata Steel Limited TTST $0.2010 $0.2000 -0%
JSW Steel Limited JSWSTEEL ₹1,227 ₹1,140 -7%
Baoshan Iron & Steel Co 600019 ¥5.89 ¥8.07 +37%
China Steel Corporation 2002A 38.55 TWD 8.74 TWD -77%
POSCO Holdings 005490 313,500 KRW 155,270 KRW -50%
Companhia Siderúrgica Nacional, SID 13,670 ARS 15,940 ARS +17%
Jindal Steel Limited JINDALSTEL ₹1,028 ₹545.12 -47%
Lloyds Metals and Energy Limited LLOYDSME ₹1,844 ₹1,098 -40%
SSAB AB SSABA kr 96.04 kr 72.43 -25%
Gerdau S.A GGBN 83.50 MXN 42.64 MXN -49%

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Frequently asked questions

Is BlueScope Steel Limited (BSL) overvalued or undervalued?
As of Jul 16, 2026, our model estimates a fair value of A$6.50 versus a price of A$35.11, about −81% (overvalued).
What is the fair value of BSL?
Our model-based fair value for BlueScope Steel Limited is A$6.50 (as of Jul 16, 2026), built from audited fundamentals. The current price is A$35.11.
What is the quality score of BSL?
BlueScope Steel Limited has a Quality Score of 60/100. It combines two groups: business quality (profitability, growth, cash flow, balance-sheet strength) and market factors (price momentum, distance to the 52-week high, volatility). Both subtotals are shown separately in the detail view.
What is the revenue of BlueScope Steel Limited (BSL)?
BlueScope Steel Limited reported trailing-twelve-month revenue of about A$16.6B (latest available figure, as of Jul 16, 2026).
What is the net profit margin of BSL?
The net profit margin of BlueScope Steel Limited is about 1.8%, meaning it keeps roughly 1.8% of revenue as net income. Based on the latest reported figures.
Does BlueScope Steel Limited pay a dividend?
BlueScope Steel Limited currently shows a dividend yield of about 2.91% relative to its recent price (as of Jul 16, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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