Arcelor Mittal NY Registry Shares NEW (MT) Company Bio
ArcelorMittal is a steel and mining company which produces flat steel products, including sheet and plate, and long steel products, including bars, rods and structural shapes, as well as various types of mining products, including iron ore lump, fines, concentrate and sinter feed, coking, pulverized coal injection and thermal coal. The company was founded in 1976 and is based in Luxembourg.
MT Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for ArcelorMittal with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that ArcelorMittal ranked in the 84th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 856.33% on a DCF basis. The most interesting components of our discounted cash flow analysis for ArcelorMittal ended up being:
The company's balance sheet shows it gets 40% of its capital from equity, and 60% of its capital from debt. Notably, its equity weight is greater than merely 22.45% of US equities in the Basic Materials sector yielding a positive free cash flow.
ArcelorMittal's effective tax rate, as measured by taxes paid relative to net income, is at 396 -- greater than 99.45% of US stocks with positive free cash flow.
ArcelorMittal's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -0.21. This coverage rate is greater than that of merely 15.21% of stocks we're observing for the purpose of forecasting via discounted cash flows.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
AXTA, CMC, BLD, SUM, and HDSN can be thought of as valuation peers to MT, in the sense that they are in the Basic Materials sector and have a similar price forecast based on DCF valuation.