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Bluescope Steel Ltd (BSL) Fair Value & Analysis

Basic Materials · AU · Market cap A$14.2B (≈ $10.2B) · ISIN AU000000BSL0

What is Bluescope Steel Ltd really worth?

BS Bluescope Steel Ltd BSL · AU
PriceA$32.05
Fair ValueA$6.50
Upside−79.7%
Quality54/100

Structural break: The valuation model sees a lasting decline in earnings power for this stock, the confidence band is broken. Treat the target with caution.

A solid business, but trading 393% above our fair value of A$6.50.

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Strengths

Low debt · generates free cash flow
Ranks above peers (9/15)

Risks

!Weak Growth (revenue 5y +7.6 %/yr)
!Thin margins · 1.8% net margin
!Narrow moat 27/100
!Evidence only low, so the estimate is less certain
!Weak on future: 20 out of 100
!Weak on past: 14 out of 100

For context

·5.62% dividend yield
Evidence: Low Range A$4.88 – A$8.12

Fair value as of: Sep 5, 2026

From 25 valuation models · updated today

Fair value updated Sep 5, 2026, revised from A$3.25 to A$6.50 (+100.0%) since Aug 27, 2026. Share price −4.2% over the past month.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

What matters now

  • The price sits above even our optimistic bull case (A$8.12). The favourable scenario is already priced in.
  • The large gap to fair value rests on thin data (low evidence): fewer applicable models and a shorter history. Read it with extra caution.
  • Solid but not exceptional quality (54/100) and above fair value, neither a clear bargain nor a standout compounder.

Price vs Fair Value (5 years)

A$35.23 A$13.05 Fair Value A$6.50 Jun 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Sep 5, 2026.

How to read this chart

60‑month range A$13.05 – A$35.23 · fair‑value band A$4.88 – A$8.12 · the A$32.05 price screens above the A$6.50 fair value. Dashed = 300-day average. As of Sep 5, 2026.

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Analysis

Bluescope Steel Ltd (BSL) currently trades at A$32.05, while our model-based Fair Value estimate is A$6.50, implying the stock looks roughly 393.1% overvalued today. The Quality Score stands at 54/100 (solid quality), in the Basic Materials sector. Bull case: the Asset-Based group reads highest at a median of A$16.31 per share, and 0 of the 25 models we run sit above the A$32.05 price. Bear case: the Earnings-Based group reads lowest at A$1.09, and 25 of the 25 models stay below the price. Evidence for this calculation is low.

Over the trailing twelve months, Bluescope Steel Ltd 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 Sep 5, 2026

Our scenario range runs from A$4.88 (bear case) to A$8.12 (bull case); at A$32.05, 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 5% below its 52-week high and 67% above its 52-week low, currently above its 200-day average. For context, the median of 10 Basic Materials peers we cover trades at −22% fair-value upside, at −80%, 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, family-balanced 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. Every input is real reported data, nothing guessed.

Note: the current price implies far more future growth than the conservative anchors of our models allow (base growth is deliberately capped, we do not regard such extreme rates as sustainable). Our models are not designed for expectations this high; that is why the individual models scatter extremely (A$1.09 to A$20.23). Read the values as a conservative anchor, not as a price target.
Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
FCF DCF A$5.96 A$8.33 A$11.85 78
Growth DCF A$6.06 A$8.18 A$11.18 77
EPV A$2.61 A$2.81 A$2.99 74
All 25 models by family
DCF Models
FCF DCF A$5.96 A$8.33 A$11.85 78
5Y Revenue Exit A$4.43 A$5.78 A$7.45 72
5Y EBITDA Exit A$11.10 A$18.05 A$26.12 72
5Y P/E Exit A$4.42 A$5.76 A$7.12 70
10Y Revenue Exit A$4.88 A$6.23 A$7.93 66
10Y EBITDA Exit A$9.17 A$14.68 A$21.96 65
10Y P/E Exit A$4.94 A$6.22 A$7.69 63
Earnings-Based
Graham-Dodd A$1.30 A$3.71 A$4.90 63
Lynch FV A$0.7600 A$1.09 A$1.41 59
PEG = 1.0 A$0.7600 A$1.09 A$1.41 55
EPV A$2.61 A$2.81 A$2.99 74
Dividend Discount
Gordon GGM A$7.54 A$15.68 A$24.87 64
DDM Multi-Stage A$7.54 A$12.02 A$16.45 64
Multiples
P/E Multiple A$2.44 A$3.25 A$4.06 63
P/S Multiple A$2.44 A$3.25 A$4.06 58
P/B Multiple A$2.44 A$3.25 A$4.06 55
EV/EBIT A$4.06 A$4.94 A$5.82 66
EV/EBITDA A$15.52 A$20.23 A$24.93 67
EV/Revenue A$3.70 A$4.69 A$5.67 54
Asset-Based
NCAV (Graham) A$12.17 A$16.31 A$24.35 54
Growth DCF
Growth DCF A$6.06 A$8.18 A$11.18 77
Rev-Margin DCF A$4.43 A$5.83 A$7.44 72
Economic Profit
Residual Income A$16.63 A$15.61 A$11.17 74
ROIC Compounder A$2.61 A$2.81 A$2.99 70
Growth Earnings
Growth-Adj P/E A$2.00 A$2.86 A$3.72 65

Widest divergence: Asset-Based (A$16.31) versus Earnings-Based (A$1.09). Highest evidence: FCF DCF (78).

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Key figures & financial health

P/E ratio 56.2
P/S ratio 0.29 P/E × margin
EPS (TTM) A$0.5700 price ÷ EPS = P/E 56.2
Dividend yield 5.6%
Net margin 0.5% FY2025
Return on equity 3.4% TTM
More key figures
Profitability
Return on assets (EBIT) 10.3% avg 5y
Operating margin 6.3% TTM
Growth
Revenue (TTM) A$16.6B TTM
Revenue growth (YoY) +4.0% 3y avg −5.1%
EPS growth (YoY) +119%
Balance sheet & cash flow
Free cash flow A$180M FY2025
Net debt A$28.4M FY2025 · ≈ 0.2 yrs of FCF

Figures from reported company fundamentals · as of Sep 5, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 54/100

Of which business quality 54 · Market factors (momentum, volatility) 68

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 67
Price trend over the last 3–12 months (market factor)
52W Momentum 88
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.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

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 Ltd 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 40/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
A$16.3B
Latest YoY
−4.7%
Avg. revenue growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−5.1%
Avg. revenue growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+7.6%
Avg. revenue growth/yr (24Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+5.1%
Value creation/yr (5Y) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year.
−31.1% (−36.7 + 5.6)
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
Character of growth · EPS growth decomposed (2015-2025) +10.6 % p.a.
Revenue per share +11.4 %

of which total revenue +8.2 % · buybacks/dilution +3.0 %

EBIT margin +4.3 %
Tax rate −1.6 %
Residual (interest, one-offs) −3.3 %

Annual growth per factor. These are factors, not summands: multiplied they give the EPS growth rate, added they do not quite. Start and end points are 3-year averages (details on hover).

BSL screens 393% overvalued. Compare with Nucor Corporation →

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

Earlier news

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

Peer Group

Steel · 398 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 54 · Above median
Fair Value upside −80% · 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) 5.6% · Top 25%
Debt / equity 0.02× · Lower than median

Valuation Multiples vs Steel median · lower = cheaper

P/E (TTM) 56.2× · Pricier than 75% of peers
P/B 0.96× · Cheaper than median
P/S (TTM) 0.62× · Pricier than median
P/FCF 57.0× · Pricier than 75% of peers
EV/EBITDA 6.3× · Cheaper than median
PEG 0.03× · Cheaper than 75% of peers

Strength profile in five axes (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.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE0 · sector 12
FUTURE20 · sector 2
PAST14 · sector 16
HEALTH99 · sector 95
DIVIDEND100 · sector 49

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

Similar stocks

10 more Steel stocks, each showing price versus our Fair Value estimate (as of Sep 5, 2026).

Stock Price Fair Value vs Fair Value
Nucor Corporation NUE $250.50 $116.05 −54%
ArcelorMittal S.A MT €64.60 €46.04 −29%
JSW Steel Limited JSWSTEEL ₹1,296 ₹1,119 −14%
Steel Dynamics, Inc STLD $234.67 $127.14 −46%
500228 500228 ₹1,292 ₹1,079 −16%
Tata Steel Limited TATASTEEL ₹186.80 ₹145.39 −22%
Reliance, Inc RS $387.59 $217.81 −44%
Baoshan Iron & Steel Co 600019 ¥5.91 ¥8.07 +37%
POSCO Holdings PKX $63.13 $85.21 +35%
Jindal Steel & Power Limited JINDALSTEL ₹1,114 ₹429.44 −61%

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Frequently asked questions

Is Bluescope Steel Ltd (BSL) overvalued or undervalued?
As of Sep 5, 2026, our model estimates a fair value of A$6.50 versus a price of A$32.05, about −80% upside (overvalued).
What is the fair value of BSL?
Our model-based fair value for Bluescope Steel Ltd is A$6.50 (as of Sep 5, 2026), built from audited fundamentals. The current price: A$32.05.
What is the quality score of BSL?
Bluescope Steel Ltd has a Quality Score of 54/100. 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 Bluescope Steel Ltd (BSL)?
Bluescope Steel Ltd reported trailing-twelve-month revenue of about A$16.6B (latest available figure, as of Sep 5, 2026).
What is the net profit margin of BSL?
The net profit margin of Bluescope Steel Ltd is about 1.8%, meaning it keeps roughly 1.8% of revenue as net income. Based on the latest reported figures.
Does Bluescope Steel Ltd pay a dividend?
Bluescope Steel Ltd currently shows a dividend yield of about 5.62% relative to its recent price (as of Sep 5, 2026).
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