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Gerdau S.A (GGBR3) Fair Value & Analysis

Basic Materials · BR · Market cap R$40.1B

GS Gerdau S.A GGBR3 · SA
PriceR$19.96
Fair ValueR$13.93
Upside-30.2%
Quality56/100
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Evidence: High Range R$8.94 – R$16.97 📤 Share as image

Fair value as of: Jul 18, 2026

From 25 valuation models · updated 5 days ago

Share price +8.5% over the past month.

Price vs Fair Value (12 months)

R$20.95 R$13.74 Fair Value R$13.93 Jul 2025 Jul 2026

12‑month range R$13.74 – R$20.95 · fair‑value band R$8.94 – R$16.97 · the R$19.96 price screens above the R$13.93 fair value. As of Jul 18, 2026.

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Analysis

Gerdau S.A (GGBR3) currently trades at R$19.96, while our model-based Fair Value estimate is R$13.93, implying the stock looks roughly 30.2% overvalued today. We read business quality at 56/100 (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: high).

Over the trailing twelve months, Gerdau S.A generated revenue of R$69.2B at a net margin of 2.4%. Revenue declined 3.8% year over year. It earns a return on equity of 3.1%. Net debt stands at R$10.6B. Fundamentals as of Jul 18, 2026

Our scenario range runs from R$8.94 (bear case) to R$16.97 (bull case); at R$19.96, the current price sits above that range. The share trades about 5% below its 52-week high and 48% above its 52-week low, currently above its 200-day average. For context, the median of 10 Basic Materials peers we cover trades at -31% fair-value upside, at -30%, GGBR3 screens cheaper than that median.

Key figures & financial health

Revenue (TTM) R$69.2B
Revenue growth (YoY) -3.8%
Net margin 2.4%
Return on equity 3.1%
Free cash flow R$1.1B FY2025
P/E ratio 24.1
More key figures
Operating margin 10.5%
EPS (TTM) R$0.8300
Dividend yield 3.3%
EPS growth (YoY) +37.9%
Net debt R$10.6B FY2025

Figures from reported company fundamentals (EODHD) · as of Jul 18, 2026. TTM = trailing twelve months.

About the company

Gerdau S.A., together with its subsidiaries, operates as a steel producer company. It operates through Brazil Business, North America Business, and South America Business segments. The company offers rebars, bars, wires, thick plates, hot rolled coils, billets, blooms, plates, wire rods, and structural profiles. It also provides special steel products for agricultural, automotive, construction, distribution, energy, industrial, and mining markets. In addition, it operates mines that produce iron ore located in Brazil. The company was founded in 1901 and is headquartered in São Paulo, Brazil.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Gerdau S.A reported revenue of R$69.9B in FY2025 versus R$78.3B in FY2021, a compound −2.8%/yr. Reported net income was R$1.4B in FY2025, compounding −45.3%/yr from FY2021.

Revenue −2.8%/yr
FY21 R$78.3B
FY22 R$82.4B
FY23 R$68.9B
FY24 R$67.0B
FY25 R$69.9B
Net income −45.3%/yr
FY21 R$15.5B
FY22 R$11.4B
FY23 R$7.5B
FY24 R$4.6B
FY25 R$1.4B

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Cite: Fair Value Calculator (2026). "Gerdau S.A Fair Value". https://www.fairvalue-calculator.com/stock/GGBR3

Recent news

External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection, not financial advice.

Similar stocks

10 more Steel stocks, each showing price versus our Fair Value estimate (as of Jul 18, 2026).

Stock Price Fair Value vs Fair Value
Nucor Corporation N1UE34 R$103.95 R$9.67 -91%
ArcelorMittal S.A ARMT34 R$172.80 R$119.18 -31%
JSW Steel Limited JSWSTEEL ₹1,282 ₹1,113 -13%
Tata Steel Limited TATASTEEL ₹206.77 ₹131.96 -36%
Baoshan Iron & Steel Co 600019 ¥5.75 ¥8.07 +40%
POSCO Holdings 005490 390,000 KRW 106,072 KRW -73%
Companhia Siderúrgica Nacional, SID 13,670 ARS 14,537 ARS +6%
Jindal Steel Limited JINDALSTEL ₹1,132 ₹516.27 -54%
Lloyds Metals and Energy Limited LLOYDSME ₹1,786 ₹1,099 -38%
SSAB AB SSABA kr 95.34 kr 70.89 -26%

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Frequently asked questions

Is Gerdau S.A (GGBR3) undervalued?
As of Jul 18, 2026, our model estimates a fair value of R$13.93 versus a price of R$19.96, about −30% (overvalued). Model-based estimate, not financial advice.
What is the fair value of GGBR3?
Our model-based fair value for Gerdau S.A is R$13.93 (as of Jul 18, 2026), built from audited fundamentals. The current price is R$19.96.
What is the quality score of GGBR3?
Gerdau S.A has a Quality Score of 56/100, measuring profitability, growth and balance-sheet strength from non-valuation factors.
What is the revenue of Gerdau S.A (GGBR3)?
Gerdau S.A reported trailing-twelve-month revenue of about R$69.2B (latest available figure, as of Jul 18, 2026).
What is the net profit margin of GGBR3?
The net profit margin of Gerdau S.A is about 2.4%, meaning it keeps roughly 2.4% of revenue as net income. Based on the latest reported figures.
Does Gerdau S.A pay a dividend?
Gerdau S.A currently shows a dividend yield of about 3.29% relative to its recent price (as of Jul 18, 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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