GGB PE Ratio & Valuation,Is GGB Overvalued

GGB Relative Valuation

GGB's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, GGB is overvalued; if below, it's undervalued.

Historical Valuation

Gerdau SA (GGB) is now in the Overvalued zone, suggesting that its current forward PE ratio of 9.60 is considered Overvalued compared with the five-year average of 6.01. The fair price of Gerdau SA (GGB) is between 2.39 to 3.33 according to relative valuation methord. Compared to the current price of 3.69 USD , Gerdau SA is Overvalued By 10.8%.

Relative Value

Fair Zone

2.39-3.33

Current Price：3.69

10.8%

Overvalued

9.60

4.23

EV/EBITDA

Gerdau SA. (GGB) has a current EV/EBITDA of 4.23. The 5-year average EV/EBITDA is 3.62. The thresholds are as follows: Strongly Undervalued below 2.28, Undervalued between 2.28 and 2.95, Fairly Valued between 4.29 and 2.95, Overvalued between 4.29 and 4.96, and Strongly Overvalued above 4.96. The current Forward EV/EBITDA of 4.23 falls within the Historic Trend Line -Fairly Valued range.

7.01

EV/EBIT

Gerdau SA. (GGB) has a current EV/EBIT of 7.01. The 5-year average EV/EBIT is 5.11. The thresholds are as follows: Strongly Undervalued below 2.27, Undervalued between 2.27 and 3.69, Fairly Valued between 6.54 and 3.69, Overvalued between 6.54 and 7.96, and Strongly Overvalued above 7.96. The current Forward EV/EBIT of 7.01 falls within the Overvalued range.

0.53

Gerdau SA. (GGB) has a current PS of 0.53. The 5-year average PS is 0.57. The thresholds are as follows: Strongly Undervalued below 0.38, Undervalued between 0.38 and 0.48, Fairly Valued between 0.67 and 0.48, Overvalued between 0.67 and 0.76, and Strongly Overvalued above 0.76. The current Forward PS of 0.53 falls within the Historic Trend Line -Fairly Valued range.

4.30

P/OCF

Gerdau SA. (GGB) has a current P/OCF of 4.30. The 5-year average P/OCF is 3.82. The thresholds are as follows: Strongly Undervalued below 2.40, Undervalued between 2.40 and 3.11, Fairly Valued between 4.53 and 3.11, Overvalued between 4.53 and 5.23, and Strongly Overvalued above 5.23. The current Forward P/OCF of 4.30 falls within the Historic Trend Line -Fairly Valued range.

11.96

P/FCF

Gerdau SA. (GGB) has a current P/FCF of 11.96. The 5-year average P/FCF is 8.79. The thresholds are as follows: Strongly Undervalued below -0.02, Undervalued between -0.02 and 4.39, Fairly Valued between 13.19 and 4.39, Overvalued between 13.19 and 17.60, and Strongly Overvalued above 17.60. The current Forward P/FCF of 11.96 falls within the Historic Trend Line -Fairly Valued range.

Gerdau SA (GGB) has a current Price-to-Book (P/B) ratio of 0.72. Compared to its 3-year average P/B ratio of 0.76 , the current P/B ratio is approximately -4.53% higher. Relative to its 5-year average P/B ratio of 0.94, the current P/B ratio is about -22.74% higher. Gerdau SA (GGB) has a Forward Free Cash Flow (FCF) yield of approximately 1.46%. Compared to its 3-year average FCF yield of 12.91%, the current FCF yield is approximately -88.66% lower. Relative to its 5-year average FCF yield of 15.21% , the current FCF yield is about -90.38% lower.

0.72

P/B

Median3y

0.76

Median5y

0.94

1.46

FCF Yield

Median3y

12.91

Median5y

15.21

Competitors Valuation Multiple

The average P/S ratio for GGB's competitors is 1.03, providing a benchmark for relative valuation. Gerdau SA Corp (GGB) exhibits a P/S ratio of 0.53, which is -47.97% above the industry average. Given its robust revenue growth of 5.35%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of GGB increased by 27.47% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 9.31 to 13.45.

The secondary factor is the Revenue Growth, contributed 5.35%to the performance.

Overall, the performance of GGB in the past 1 year is driven by P/E Change. Which is more unsustainable.

5.35%

3.13B → 3.30B

Revenue Growth

-22.31%

7.80 → 6.06

Margin Expansion

44.43%

9.31 → 13.45

P/E Change

27.47%

2.86 → 3.65

Mkt Cap Growth

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Frequently Asked Questions

Is Gerdau SA (GGB) currently overvalued or undervalued?

What is Gerdau SA (GGB) fair value?

GGB's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average , adjusted by weights. The fair price of Gerdau SA (GGB) is between 2.39 to 3.33 according to relative valuation methord.

How does GGB's valuation metrics compare to the industry average?

What is the current P/B ratio for Gerdau SA (GGB) as of Dec 15 2025?

As of Dec 15 2025, Gerdau SA (GGB) has a P/B ratio of 0.72. This indicates that the market values GGB at 0.72 times its book value.

What is the current FCF Yield for Gerdau SA (GGB) as of Dec 15 2025?

As of Dec 15 2025, Gerdau SA (GGB) has a FCF Yield of 1.46%. This means that for every dollar of Gerdau SA’s market capitalization, the company generates 1.46 cents in free cash flow.

What is the current Forward P/E ratio for Gerdau SA (GGB) as of Dec 15 2025?

As of Dec 15 2025, Gerdau SA (GGB) has a Forward P/E ratio of 9.60. This means the market is willing to pay $9.60 for every dollar of Gerdau SA’s expected earnings over the next 12 months.

What is the current Forward P/S ratio for Gerdau SA (GGB) as of Dec 15 2025?

As of Dec 15 2025, Gerdau SA (GGB) has a Forward P/S ratio of 0.53. This means the market is valuing GGB at $0.53 for every dollar of expected revenue over the next 12 months.

GGB Valuation