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. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 789.5%. In terms of the factors that were most noteworthy in this DCF analysis for MT, they are:
40% of the company's capital comes from equity, which is greater than just 24.46% of stocks in our cash flow based forecasting set.
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 only 16.91% of stocks we're observing for the purpose of forecasting via discounted cash flows.
As a business, ArcelorMittal experienced a tax rate of about 396% over the past twelve months; relative to its sector (Basic Materials), this tax rate is higher than 99.5% of stocks generating free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Basic Materials that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as MT, try AXTA, SUM, KOP, UFPI, and POL.