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Vulcan Steel Limited (VSL) Fair Value & Analysis

Basic Materials · AU · Market cap A$755M

VS Vulcan Steel Limited VSL · AU
PriceA$5.60
Fair ValueA$2.47
Upside-55.9%
Quality52/100
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Mixed Growth
Thin margins · 1.5% net margin
Moderate debt · generates free cash flow
1.18% dividend yield
Mixed vs. peers (6/14)
Narrow moat 33/100
Evidence: High Range A$1.84 – A$3.08 Share as image

Fair value as of: Jul 20, 2026

From 20 valuation models · updated 20 days ago

Fair value updated Jul 20, 2026, revised from A$1.82 to A$2.47 (+35.7%) since Jul 19, 2026. Share price +15.7% over the past month.

A solid business, but screening 56% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (A$3.08). The favourable scenario is already priced in.
  • Solid but not exceptional quality (52/100) and above fair value, neither a clear bargain nor a standout compounder.
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Price vs Fair Value (5 years)

A$8.66 A$4.70 Fair Value A$2.47 Nov 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 20, 2026.

How to read this chart

57‑month range A$4.70 – A$8.66 · fair‑value band A$1.84 – A$3.08 · the A$5.60 price screens above the A$2.47 fair value. Dashed = 300-day average. As of Jul 20, 2026.

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Analysis

Vulcan Steel Limited (VSL) currently trades at A$5.60, while our model-based Fair Value estimate is A$2.47, implying the stock looks roughly 55.9% overvalued today. The Quality Score stands at 52/100 (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, Vulcan Steel Limited generated revenue of A$991M at a net margin of 1.5%. Revenue grew 8.6% year over year. It earns a return on equity of 6.7%. Net debt stands at A$528M. Fundamentals as of Jul 20, 2026

Our scenario range runs from A$1.84 (bear case) to A$3.08 (bull case); at A$5.60, 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 about 30% below its 52-week high and 17% above its 52-week low, currently below its 200-day average. For context, the median of 10 Basic Materials peers we cover trades at -7% fair-value upside, at -56%, VSL 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$3.40 A$4.73 A$6.60 80
Residual Income A$0.9400 A$1.00 A$1.12 76
Rev-Margin DCF A$1.41 A$2.32 A$3.42 74
All 20 models by family
DCF Models
FCF DCF A$3.28 A$4.70 A$6.81 38
Owner Earnings A$0.7700 A$1.46 A$2.48 31
5Y Revenue Exit A$1.41 A$2.21 A$3.26 39
5Y EBITDA Exit A$2.37 A$3.86 A$5.67 41
5Y P/E Exit A$1.17 A$1.79 A$2.47 38
10Y Revenue Exit A$2.14 A$2.94 A$3.79 36
10Y EBITDA Exit A$2.73 A$3.94 A$5.29 37
10Y P/E Exit A$2.05 A$2.68 A$3.30 35
Earnings-Based
Graham-Dodd A$0.7300 A$1.37 A$1.70 54
Multiples
P/E Multiple A$1.37 A$1.82 A$2.28 63
P/S Multiple A$1.37 A$1.82 A$2.28 58
P/B Multiple A$1.37 A$1.82 A$2.28 55
EV/EBIT A$0.4100 A$1.08 A$1.75 53
EV/EBITDA A$2.20 A$3.46 A$4.73 54
EV/Revenue A$0.1500 A$0.8900 A$1.63 43
Asset-Based
NCAV (Graham) A$0.5800 A$0.7800 A$1.16 50
Growth DCF
Growth DCF A$3.40 A$4.73 A$6.60 80
Rev-Margin DCF A$1.41 A$2.32 A$3.42 74
Economic Profit
Residual Income A$0.9400 A$1.00 A$1.12 76
Growth Earnings
Growth-Adj P/E A$0.9900 A$1.41 A$1.83 68

Widest divergence: DCF Models (A$2.68) versus Asset-Based (A$0.7800). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) A$991M
Revenue growth (YoY) +8.6%
Net margin 1.5%
Return on equity 6.7%
Free cash flow A$83.6M FY2025
P/E ratio 57.2
More key figures
Operating margin 5.6%
EPS (TTM) A$0.0900
Dividend yield 1.2%
EPS growth (YoY) -16.9%
Net debt A$528M FY2025

Figures from reported company fundamentals · as of Jul 20, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 52/100

Of which business quality 52 · Market factors (momentum, volatility) 34

Profitability 48
Margins and returns on capital today
Quality Growth 22
Are margins and returns improving?
Cashflow 67
Earnings quality: real cash, not paper profit
Fin. Strength 27
Balance sheet, leverage, solvency risk
Investment 88
Disciplined investing over empire-building
Low Volatility 43
Calm price path (market factor)
Momentum 30
Price trend over the last 3–12 months (market factor)
52W Momentum 29
Distance to the 52-week high (market factor)
Net Issuance 73
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

Vulcan Steel Limited, together with its subsidiaries, engages in the sale and distribution of steel and metal products in New Zealand and Australia. It operates through Steel and Metals segments.

Full company description

Vulcan Steel Limited, together with its subsidiaries, engages in the sale and distribution of steel and metal products in New Zealand and Australia. It operates through Steel and Metals segments. The company sells steel hollows; merchant products, including bars, angles, beams, channels, and unprocessed coils and plates; stainless steel products, such as fittings and sheets; and high-performance steel and metal products. It also offers processing services including cutting, drilling, tapping, countersinking, and folding of plates, as well as sheeting and slitting services. In addition, it distributes aluminium sheet, plate, and coil. Vulcan Steel Limited was incorporated in 1995 and is based in Auckland, New Zealand.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Vulcan Steel Limited reported revenue of A$948M in FY2025 versus A$731M in FY2021, a compound +6.7%/yr. Reported net income was A$15.7M in FY2025, compounding −28.8%/yr from FY2021.

Growth Quality 70/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
A$948M
Latest YoY
−10.9%
Avg. growth/yr (3Y)
−0.7%
Avg. growth/yr (5Y)
+7.8%
Avg. growth/yr (7Y)
+8.3%
Revenue +6.7%/yr
FY21 A$731M
FY22 A$968M
FY23 A$1.2B
FY24 A$1.1B
FY25 A$948M
Net income −28.8%/yr
FY21 A$61.1M
FY22 A$124M
FY23 A$87.9M
FY24 A$40.0M
FY25 A$15.7M

VSL screens 56% overvalued. Compare with Tata Steel Limited →

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

Peer Group

Steel · 378 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 52 · Above median
Fair Value upside −56% · Bottom 25%
Return on equity (TTM) 7% · Above median
Return on assets 4% · Above median
Net margin (TTM) 2% · Below median
Operating margin (TTM) 6% · Above median
Revenue growth 9% · Above median
Dividend yield (TTM) 1.2% · Below median
Debt / equity 1.47× · Higher than 75% of peers

Valuation Multiples vs Steel median · lower = cheaper

P/E (TTM) 57.2× · Pricier than 75% of peers
P/B 3.14× · Pricier than 75% of peers
P/S (TTM) 0.54× · Cheaper than median
P/FCF 6.4× · Pricier than 75% of peers
EV/EBITDA 10.1× · Pricier than median

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 20
FUTURE 43 · sector 4
PAST 27 · sector 15
HEALTH 26 · sector 95
DIVIDEND 24 · 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 20, 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%
Gerdau S.A GGBN 83.50 MXN 42.64 MXN -49%
Ternium S.A TXR 17,780 ARS 27,210 ARS +53%

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Frequently asked questions

Is Vulcan Steel Limited (VSL) overvalued or undervalued?
As of Jul 20, 2026, our model estimates a fair value of A$2.47 versus a price of A$5.60, about −56% (overvalued).
What is the fair value of VSL?
Our model-based fair value for Vulcan Steel Limited is A$2.47 (as of Jul 20, 2026), built from audited fundamentals. The current price is A$5.60.
What is the quality score of VSL?
Vulcan Steel Limited has a Quality Score of 52/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Vulcan Steel Limited (VSL)?
Vulcan Steel Limited reported trailing-twelve-month revenue of about A$991M (latest available figure, as of Jul 20, 2026).
What is the net profit margin of VSL?
The net profit margin of Vulcan Steel Limited is about 1.5%, meaning it keeps roughly 1.5% of revenue as net income. Based on the latest reported figures.
Does Vulcan Steel Limited pay a dividend?
Vulcan Steel Limited currently shows a dividend yield of about 1.18% relative to its recent price (as of Jul 20, 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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