ArcelorMittal Stock Valuation

MT Stock  USD 30.43  0.66  2.12%   
What would the acquisition value of ArcelorMittal SA ADR be today? Calculating the true value of any business is not as easy as it may seem. While the market cap of a public entity, such as ArcelorMittal, is its stock price multiplied by the total number of shares outstanding, calculating ArcelorMittal's enterprise value requires a different approach. It uses ArcelorMittal's balance sheet items such as long-term debt, the book value of the preferred stock, minority interest, and other important financials.
ArcelorMittal Free Cash Flow is comparatively stable at the moment as compared to the past year. ArcelorMittal reported Free Cash Flow of 7.92 Billion in 2022. Tangible Asset Value is likely to gain to about 77.5 B in 2023, whereas Enterprise Value is likely to drop slightly above 35.2 B in 2023.
ArcelorMittal SA ADR shows a prevailing Real Value of $36.38 per share. The current price of the firm is $30.43. At this time, the firm appears to be undervalued. Our model approximates the value of ArcelorMittal SA ADR from analyzing the firm fundamentals such as profit margin of 0.16 %, and Return On Equity of 0.26 % as well as examining its technical indicators and Probability Of Bankruptcy. In general, we favor acquiring undervalued instruments and selling overvalued instruments since, at some point, asset prices and their ongoing real values will blend.
  
ArcelorMittal Valuation Module provides a unique way to ballpark how much the company is worth today. It is done using both, our quantitative analysis of the company fundamentals as well as its intrinsic market price estimation to project the real value. We also take into consideration other essential factors such as ArcelorMittal's management style, its c-level domain expertise and tenure, its overall leadership history as well as current capital structure, and future earnings potential.

ArcelorMittal Most Recent Valuation Data

Dividend Share
0.38
Beta
1.9835
Fiscal Year End
December
Property Plant And Equipment Net
30.1 B
Enterprise Value
25.5 B
Undervalued
Today 30.43
Please note that ArcelorMittal's price fluctuation is very steady at this time. Calculation of the real value of ArcelorMittal SA ADR is based on 3 months time horizon. Increasing ArcelorMittal's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for ArcelorMittal SA ADR is useful when determining the fair value of the ArcelorMittal stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of ArcelorMittal. Since ArcelorMittal is currently traded on the exchange, buyers and sellers on that exchange determine the market value of ArcelorMittal Stock. However, ArcelorMittal's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
36.38
Real Value
38.53
Upside
Estimating the potential upside or downside of ArcelorMittal SA ADR helps investors to forecast how ArcelorMittal stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of ArcelorMittal more accurately as focusing exclusively on ArcelorMittal's fundamentals will not take into account other important factors:
Bollinger
Band Projection (param)
LowerMiddle BandUpper
24.3328.9433.56
Details
Hype
Prediction
LowEstimated ValueHigh
28.2630.4132.56
Details
Potential
Annual Dividend
LowIncome Per ShareHigh
0.220.230.23
Details
6 Analysts
Consensus
LowTarget PriceHigh
47.2050.1052.00
Details
Traditionally analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use ArcelorMittal's intrinsic value based on its ongoing forecasts of ArcelorMittal's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against ArcelorMittal's closest peers. When choosing an evaluation method for ArcelorMittal SA ADR, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using both methods to arrive at a better estimate.

ArcelorMittal Investments

11.49 Billion

ArcelorMittal Valuation Drivers Correlation

Many accounts on the financial statements of ArcelorMittal SA ADR are highly interrelated and sometimes correlated. Consequently, when conducting ArcelorMittal's valuation analysis, one should examine all of the accounts reported to obtain a complete picture of its financial situation. We provide a unique feature to present a conventional correlation table purposely composed against different valuation-related drivers of ArcelorMittal
Click cells to compare fundamentals

ArcelorMittal Valuation Trend

Knowing ArcelorMittal's actual value is paramount for traders to make sound investment determinations. ArcelorMittal's real value is not only important for the investor to make better decisions but also for a more accurate overall view of ArcelorMittal's financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both ArcelorMittal's enterprise value as well as its market capitalization is the best way to gauging the value of the company and is usually enough for investors to make market timing descisions.

ArcelorMittal Market Cap

ArcelorMittal SA ADR is considered to be number one stock in market capitalization category among related companies. Market capitalization of Materials industry is now estimated at about 147.62 Billion. ArcelorMittal retains roughly 25.04 Billion in market capitalization claiming about 17% of all equities under Materials industry.
Capitalization  Total debt  Revenue  Workforce  Valuation

ArcelorMittal Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining ArcelorMittal's current stock value. Our valuation model uses many indicators to compare ArcelorMittal value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across ArcelorMittal competition to find correlations between indicators driving ArcelorMittal's intrinsic value. More Info.
ArcelorMittal SA ADR is considered to be number one stock in price to sales category among related companies. It is considered to be number one stock in price to earning category among related companies reporting about  7.36  of Price to Earning per Price to Sales. Price to Earnings Ratio is likely to gain to 2.28 in 2023. Earnings Before Interest Taxes and Depreciation Amortization EBITDA is likely to gain to about 26.2 B in 2023. Comparative valuation analysis is a catch-all model that can be used if you cannot value ArcelorMittal by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for ArcelorMittal's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the ArcelorMittal's earnings, one of the primary drivers of an investment's value.
Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates ArcelorMittal's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in ArcelorMittal and how it compares across the competition.

About ArcelorMittal Valuation

The stock valuation mechanism determines the current worth of ArcelorMittal SA ADR on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of ArcelorMittal SA ADR. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of ArcelorMittal SA ADR based exclusively on its fundamental and basic technical indicators. By analyzing ArcelorMittal's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of ArcelorMittal's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of ArcelorMittal. We calculate exposure to ArcelorMittal's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to ArcelorMittal's related companies.
Fiscal Year End
December
Industry
Steel
Concentration
Steel
Full Time Employees
158 K
Service Category
Metals & Mining
Last ReportedProjected for 2023
Gross Profit22.1 B23.9 B
Profit Margin 0.22  0.24 

8 Steps to conduct ArcelorMittal's Valuation Analysis

Company's valuation is the process of determining the worth of a company in monetary terms. It estimates a company's potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct ArcelorMittal's valuation analysis, follow these 8 steps:
  • Gather financial information: Obtain ArcelorMittal's financial statements, including balance sheets, income statements, and cash flow statements.
  • Determine ArcelorMittal's revenue streams: Identify ArcelorMittal's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
  • Analyze market data: Research ArcelorMittal's industry and market trends, including the size of the market, growth rate, and competition.
  • Establish ArcelorMittal's growth potential: Evaluate ArcelorMittal's management, business model, and growth potential.
  • Determine ArcelorMittal's financial performance: Analyze its financial statements to assess its historical performance and future potential.
  • Choose a valuation method: Consider the company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
  • Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate ArcelorMittal's estimated value.
  • Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
Note: This is a general outline, and different approaches and methods may be used depending on the type and size of the company being valued. We also recomment to seek professional assistance to ensure accuracy.
ArcelorMittal's stock price is the clearest measure of market expectations about its performance. Without stock valuation, investors cannot independently discern whether ArcelorMittal's value is low or high relative to the company's performance and growth projections. Determining the market value of ArcelorMittal can be done in different ways, such as multiplying its stock price by its outstanding shares.
A single share of ArcelorMittal represents a small ownership stake in the entity. As a stockholder of ArcelorMittal, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.

ArcelorMittal Dividends Analysis For Valuation

Please note that ArcelorMittal has scaled down on payment of dividends at this time. ArcelorMittal Earning Before Interest and Taxes EBIT is comparatively stable at the moment as compared to the past year. ArcelorMittal reported Earning Before Interest and Taxes EBIT of 21.36 Billion in 2022. Earnings per Basic Share is likely to gain to 16.79 in 2023, whereas Accumulated Retained Earnings Deficit are likely to drop slightly above 36 B in 2023.
There are various types of dividends ArcelorMittal can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of ArcelorMittal shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from ArcelorMittal SA ADR directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When ArcelorMittal pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of ArcelorMittal by the value of the dividends paid out.

ArcelorMittal Valuation Growth Rates

Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as ArcelorMittal does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
Quarterly Earnings Growth Y O Y-0.733

ArcelorMittal Current Valuation Indicators

Valuation refers to the process of determining the present value of ArcelorMittal SA ADR and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value ArcelorMittal we look at many different elements of the entity such as ArcelorMittal's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. ArcelorMittal's valuation analysis is also a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final ArcelorMittal's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as ArcelorMittal, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use ArcelorMittal's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes ArcelorMittal's worth.
Additionally, see Correlation Analysis. You can also try Global Correlations module to find global opportunities by holding instruments from different markets.

Complementary Tools for analysis

When running ArcelorMittal SA ADR price analysis, check to measure ArcelorMittal's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy ArcelorMittal is operating at the current time. Most of ArcelorMittal's value examination focuses on studying past and present price action to predict the probability of ArcelorMittal's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move ArcelorMittal's price. Additionally, you may evaluate how the addition of ArcelorMittal to your portfolios can decrease your overall portfolio volatility.
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Is ArcelorMittal's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of ArcelorMittal. If investors know ArcelorMittal will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about ArcelorMittal listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.73) 
Market Capitalization
25 B
Quarterly Revenue Growth
(0.06) 
Return On Assets
0.1037
Return On Equity
0.2608
The market value of ArcelorMittal SA ADR is measured differently than its book value, which is the value of ArcelorMittal that is recorded on the company's balance sheet. Investors also form their own opinion of ArcelorMittal's value that differs from its market value or its book value, called intrinsic value, which is ArcelorMittal's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because ArcelorMittal's market value can be influenced by many factors that don't directly affect ArcelorMittal's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between ArcelorMittal's value and its price as these two are different measures arrived at by different means. Investors typically determine ArcelorMittal value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, ArcelorMittal's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.