How much STLD fits your loss budget if the floor holds?
Volatility isn't risk. Ruin is. Choose the price you'd pay. The filings give us a modeled floor. You decide how much of your portfolio can be wrong. That — not a chart — sets the size.
Steel Dynamics Inc is a Basic Materials company.
Its floor is the earnings power floor, modeled from its filings: $40.00 a share.
At the prior close of $241.53 on 2026-10-23, that floor is 83.4% below.
With a 3.0% loss limit, your loss budget allows 3.6% of your portfolio, and business quality allows up to 6.5%. Your loss limit is the tighter constraint.
STLD position size FAQ
How much STLD stock should I own?
That depends on the price you would pay and the loss you can accept. At the prior close of $241.53 and a 3.0% loss limit, the calculator's maximum is 3.6% of your portfolio. It is a ceiling on size, not a recommendation to buy.
What is Steel Dynamics Inc's downside floor?
$40.00 a share: the earnings power floor, modeled from STLD's filings and recomputed 2026-10-23. Banks and insurers are held to book value; every other business to its earnings through a full cycle. A floor is a model, not a bound: the price can trade through it.
Why is STLD capped at 6.5%?
Its quality composite is 0.340 on a 0–1 scale, built from five ratios in its annual reports and graded against all companies, not just its sector. That composite keeps 53.8% of the 12.0% ceiling: 12.0% × 53.8% = 6.5%.
Does this tell me whether STLD is a buy?
No. It does not value the business. It sizes a position so one mistake cannot dominate your portfolio.
Other Basic Materials stocks
Further reading
- Position sizing for value investorsWhy a risk budget built on the fall to a value floor beats gut feel.
- Business risk vs price riskThe two ways to lose money, and which one a floor measures.
- What business quality meansThe idea behind the quality score that caps every position.
- Seven steps before you buy a stockWhere sizing fits: it is the last of the seven.