Latest Ratios: P/E Ratio 37.8x · EV/EBITDA 6.6x · ROE 2.5%. (1998–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $9.9B | $7.4B | $6.0B | $8.5B | $8.1B | $7.0B | $6.6B | $6.9B | $5.3B | $5.3B | $4.5B |
| Enterprise Value | $11.8B | $17.1B | $13.2B | $17.7B | $19.3B | $17.8B | $20.4B | $21.2B | $17.3B | $19.2B | $20.0B |
| P/E Ratio → | 37.84 | 5.35 | 1.32 | 1.14 | 0.71 | 0.45 | 2.77 | 5.72 | 2.27 | — | — |
| P/S Ratio | 0.74 | 0.11 | 0.09 | 0.12 | 0.10 | 0.09 | 0.15 | 0.18 | 0.11 | 0.14 | 0.12 |
| P/B Ratio | 0.98 | 0.14 | 0.10 | 0.17 | 0.18 | 0.16 | 0.21 | 0.26 | 0.20 | 0.22 | 0.18 |
| P/FCF | 45.49 | 6.55 | 1.11 | 1.47 | 1.22 | 0.75 | 1.44 | — | 7.20 | 4.55 | 2.09 |
| P/OCF | 6.46 | 0.93 | 0.53 | 0.77 | 0.73 | 0.56 | 1.03 | 4.22 | 2.65 | 2.55 | 1.27 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 0.24 | 0.20 | 0.26 | 0.23 | 0.23 | 0.47 | 0.53 | 0.38 | 0.52 | 0.53 |
| EV / EBITDA | 6.59 | 1.84 | 1.38 | 1.40 | 0.99 | 0.79 | 2.91 | 4.02 | 2.92 | 6.03 | 22.22 |
| EV / EBIT | 10.92 | 4.40 | 2.11 | 1.74 | 1.15 | 0.83 | 4.52 | 8.10 | 5.19 | 15.04 | — |
| EV / FCF | — | 15.04 | 2.43 | 3.05 | 2.90 | 1.91 | 4.43 | — | 23.50 | 16.52 | 9.35 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 11.4% | 11.4% | 13.7% | 16.4% | 22.8% | 26.6% | 13.5% | 10.6% | 13.3% | 9.8% | 9.2% |
| Operating Margin | 8.0% | 8.0% | 9.6% | 14.0% | 20.1% | 25.6% | — | 8.0% | 8.8% | 3.0% | -4.3% |
| Net Profit Margin | 2.0% | 2.0% | 6.8% | 10.9% | 13.9% | 19.8% | 5.4% | 3.0% | 5.0% | -1.0% | -7.7% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 2.5% | 2.5% | 8.5% | 15.7% | 25.6% | 41.9% | 8.1% | 4.5% | 9.2% | -1.5% | -10.3% |
| ROA | 1.6% | 1.6% | 5.6% | 10.1% | 15.5% | 22.6% | 4.0% | 2.3% | 4.5% | -0.7% | -4.6% |
| ROIC | 6.5% | 6.5% | 7.8% | 12.5% | 22.4% | 30.5% | — | 6.0% | 8.0% | 2.1% | -2.7% |
| ROCE | 7.6% | 7.6% | 9.2% | 15.5% | 27.6% | 35.9% | — | 7.1% | 9.5% | 2.5% | -3.0% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.29 | 0.29 | 0.26 | 0.25 | 0.30 | 0.35 | 0.59 | 0.62 | 0.57 | 0.69 | 0.85 |
| Debt / EBITDA | 1.68 | 1.68 | 1.56 | 0.96 | 0.70 | 0.66 | 2.62 | 3.21 | 2.51 | 5.17 | 22.88 |
| Net Debt / Equity | — | 0.18 | 0.12 | 0.19 | 0.24 | 0.25 | 0.44 | 0.52 | 0.46 | 0.58 | 0.64 |
| Net Debt / EBITDA | 1.04 | 1.04 | 0.75 | 0.73 | 0.57 | 0.48 | 1.96 | 2.70 | 2.02 | 4.37 | 17.25 |
| Debt / FCF | — | 8.50 | 1.32 | 1.58 | 1.68 | 1.16 | 2.99 | — | 16.30 | 11.98 | 7.26 |
| Interest Coverage | 15.98 | 15.98 | 7.86 | 60.57 | 90.07 | 108.61 | 22.79 | 10.99 | 2.11 | 0.74 | -0.52 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 2.89 | 2.89 | 3.01 | 2.59 | 2.32 | 2.33 | 2.04 | 2.46 | 2.06 | 2.33 | 2.06 |
| Quick Ratio | 1.40 | 1.40 | 1.49 | 1.24 | 1.00 | 1.12 | 1.24 | 1.42 | 0.98 | 1.46 | 1.33 |
| Cash Ratio | 0.64 | 0.64 | 0.76 | 0.47 | 0.40 | 0.48 | 0.67 | 0.85 | 0.39 | 0.44 | 0.71 |
| Asset Turnover | — | 0.86 | 0.77 | 0.92 | 1.12 | 1.06 | 0.69 | 0.73 | 0.90 | 0.73 | 0.69 |
| Inventory Turnover | 4.20 | 4.20 | 3.50 | 3.78 | 3.57 | 3.41 | 4.13 | 4.63 | 4.36 | 4.97 | 5.40 |
| Days Sales Outstanding | — | 35.44 | 39.45 | 36.40 | 31.94 | 38.71 | 49.90 | 24.60 | 33.01 | 27.67 | 34.67 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 2.4% | 17.3% | 27.4% | 31.4% | 72.5% | 76.4% | 4.1% | 7.0% | 11.3% | 1.6% | 1.9% |
| Payout Ratio | 92.7% | 92.7% | 36.3% | 35.8% | 51.6% | 34.5% | 11.6% | 40.2% | 26.0% | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 2.6% | 18.7% | 75.7% | 87.9% | 140.7% | 222.8% | 36.1% | 17.5% | 44.0% | — | — |
| FCF Yield | 2.2% | 15.3% | 89.9% | 68.0% | 82.1% | 133.5% | 69.5% | — | 13.9% | 22.0% | 47.9% |
| Buyback Yield | 2.3% | 15.7% | 19.8% | 0.0% | 13.2% | 0.0% | 0.0% | 0.0% | 4.6% | 0.0% | 2.1% |
| Total Shareholder Yield | 4.7% | 33.1% | 47.2% | 31.4% | 85.7% | 76.4% | 4.1% | 7.0% | 15.9% | 1.6% | 4.1% |
| Shares Outstanding | — | $2.0B | $2.1B | $2.1B | $1.8B | $1.8B | $1.8B | $1.8B | $1.8B | $1.8B | $1.8B |
Includes 30+ ratios · 28 years · Updated daily
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Quick answers to the most common questions about buying GGB stock.
Gerdau S.A.'s current P/E ratio is 37.8x. The historical average is 3.7x. This places it at the 100th percentile of its historical range.
Gerdau S.A.'s current EV/EBITDA is 6.6x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 4.3x.
Gerdau S.A.'s return on equity (ROE) is 2.5%. The historical average is 14.7%.
Based on historical data, Gerdau S.A. is trading at a P/E of 37.8x. This is at the 100th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Gerdau S.A.'s current dividend yield is 2.45% with a payout ratio of 92.7%.
Gerdau S.A. has 11.4% gross margin and 8.0% operating margin.
Gerdau S.A.'s Debt/EBITDA ratio is 1.7x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.
Key Metrics
Top Statement Risk
Steel price cyclicality and FX volatility
Margin Recovery Masks Cyclical Volatility
Gross margin rebounded to 15.8% in 2026Q2 from 10.9% in 2025Q4, yet remains below the 14.9% peak in 2024Q1, indicating persistent cyclicality, as per recent financial statements.
The sequential improvement in gross margin from 10.9% to 15.8% suggests a cyclical recovery, but the 2025Q4 net margin of -7.6% underscores the earnings volatility inherent in steel pricing. Operating margin expansion to 12.8% in 2026Q2 reflects operating leverage, yet the wide swings in net margin (from -7.6% to 8.1%) imply that non-operating items and one-off charges materially distort reported profitability. Investors should focus on mid-cycle margins rather than quarterly peaks, as the current level may not be sustainable given the still-soft revenue growth.
ROIC Recovery Still Below Historical Peaks
ROIC improved to 2.7% in 2026Q2 from 1.4% in 2025Q4, but remains well below the 2.5% seen in 2024Q3, indicating a slow recovery in capital efficiency, based on reported figures.
The recovery in ROIC from the cyclical trough is encouraging, yet the absolute level remains low, reflecting the capital-intensive nature of steel production and the impact of elevated PPE investments. ROE of 2.7% in 2026Q2 is similarly modest, and the gap between ROIC and ROE suggests leverage is not amplifying returns significantly. The trend over the past ten quarters shows ROIC oscillating between 1.1% and 2.7%, indicating that the company is not consistently compounding returns on capital, which may warrant a discount relative to more efficient peers.
Working Capital Cycle Lengthens Slightly
Cash conversion cycle rose to 95 days in 2026Q2 from 103 days in 2024Q1, driven by a stable DSO of 37 days and DIO of 95 days, as per recent financial statements.
The CCC has remained elevated, hovering around 95-106 days over the past ten quarters, indicating that Gerdau ties up significant cash in inventory and receivables. DIO of 95 days is high, reflecting the need to hold steel inventory, but DPO of 37 days suggests limited supplier financing leverage. The slight improvement in CCC from 105 days in 2024Q4 to 95 days in 2026Q2 is positive, yet the company still lags more efficient peers, and any further lengthening could pressure cash flow, especially given the capital intensity.
Deleveraging Improves Interest Coverage
D/E fell to 0.28 in 2026Q2 from 0.37 in 2025Q3, while interest coverage rose to 8.52x from -1.83x in 2025Q4, indicating a more comfortable debt service position, based on reported balance sheet data.
The reduction in total debt from $20.0B to $15.2B has strengthened the balance sheet, with D/E now at a multi-year low. Interest coverage of 8.52x in 2026Q2 is a marked improvement from the negative reading in 2025Q4, but the volatility in coverage (ranging from -1.83x to 65.98x) highlights the sensitivity to steel prices and earnings swings. While the current leverage is manageable, the cyclicality of EBITDA means that coverage could deteriorate rapidly in a downturn, so investors should monitor debt levels relative to trough earnings.
Liquidity Buffer Remains Comfortable
Current ratio improved to 2.87 in 2026Q2 from 2.70 in 2025Q3, with cash at $5.2B, providing a solid cushion against short-term obligations, as per recent financial statements.
The current ratio of 2.87 indicates that Gerdau holds ample current assets to cover near-term liabilities, and the quick ratio of 1.30 suggests that even excluding inventory, liquidity is adequate. However, the reliance on inventory (DIO of 95 days) means that in a severe price downturn, the realizable value of inventory could decline, potentially eroding the liquidity buffer. The $5.2B cash position provides a cushion, but the company's capital expenditure requirements and dividend commitments could consume this buffer if cash flows weaken.
P/E Misleading Due to Cyclical Earnings
The trailing P/E of 36.84 is distorted by trough earnings, while the forward P/E of 1.82 appears unrealistically low, suggesting that earnings-based multiples are unreliable for Gerdau, based on reported figures.
The extreme divergence between trailing P/E (36.84) and forward P/E (1.82) highlights the cyclicality of Gerdau's earnings, making the P/E ratio nearly meaningless for valuation. The trailing P/E is inflated by the 2025Q4 loss, while the forward P/E assumes a sharp recovery that may not materialize if steel prices soften. A more appropriate metric is EV/EBITDA, which at 6.45x is more stable and comparable to peers, or P/B of 0.95, which reflects the asset base. Investors should avoid using P/E in isolation and instead focus on mid-cycle earnings power or EV/EBITDA to assess valuation.