In finance theory, the capital asset pricing model informs us that investors seek higher returns from riskier holdings. When it comes to steel, the market perceives a great deal of production uncertainty, labor disruptions, and brutal competition that is often out of touch with the fundamentals. As an investor relations consultant, I expect to see particularly high returns from smaller under-followed firms, like Haynes International (HAYN) and Keystone Consolidated Industries (KYCN.PK), as press coverage turns more favorable. Towards that end, I plan on releasing more favorable reports that underscore just how undervalued these two players are.

In the meanwhile, the attention will be disproportionately policed on larger companies, like AK Steel (AKS). In this article, I will run you through my DCF analysis on AK Steel and will then triangulate the result with an exit multiple calculation and a review of the fundamentals compared to U.S. Steel (X) and ArcelorMittal