ArcelorMittal Valuation
| ARRD Stock | EUR 23.71 0.25 1.04% |
At this time, the firm appears to be overvalued. ArcelorMittal SA shows a prevailing Real Value of €19.13 per share. The current price of the firm is €23.71. Our model approximates the value of ArcelorMittal SA from analyzing the firm fundamentals such as return on equity of 0.18, and Profit Margin of 0.12 % as well as examining its technical indicators and probability of bankruptcy.
Overvalued
Today
Please note that ArcelorMittal's price fluctuation is not too volatile at this time. Calculation of the real value of ArcelorMittal SA 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.
The fair value of the ArcelorMittal stock is determined by what a typical buyer is willing to pay for full or partial control of ArcelorMittal SA. 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. | Historical | Market 23.71 | Real 19.13 | Hype 23.71 | Naive 22.89 |
The real value of ArcelorMittal Stock, also known as its intrinsic value, is the underlying worth of ArcelorMittal SA Company, which is reflected in its stock price. It is based on ArcelorMittal's financial performance, growth prospects, management team, or industry conditions. The intrinsic value of ArcelorMittal's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, or news.
Estimating the potential upside or downside of ArcelorMittal SA 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: ArcelorMittal Total Value Analysis
ArcelorMittal SA is presently projected to have takeover price of 24.9 B with market capitalization of 23.55 B, debt of 9.07 B, and cash on hands of 3.52 B. Please note that takeover price may be misleading and is a subject to mistakes in financial statements. We encourage investors to thoroughly investigate all of the ArcelorMittal fundamentals before making investing decisions based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
24.9 B | 23.55 B | 9.07 B | 3.52 B |
ArcelorMittal Investor Information
About 39.0% of the company shares are held by company insiders. The company has price-to-book (P/B) ratio of 0.43. Some equities with similar Price to Book (P/B) outperform the market in the long run. ArcelorMittal SA has Price/Earnings To Growth (PEG) ratio of 0.38. The entity recorded earning per share (EPS) of 10.13. The firm last dividend was issued on the 13th of May 2022. ArcelorMittal had 1:3 split on the 18th of May 2017. Based on the analysis of ArcelorMittal's profitability, liquidity, and operating efficiency, ArcelorMittal SA is not in a good financial situation at the moment. It has a very high risk of going through financial straits in December.ArcelorMittal Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. ArcelorMittal has an asset utilization ratio of 84.45 percent. This implies that the Company is making €0.84 for each dollar of assets. An increasing asset utilization means that ArcelorMittal SA is more efficient with each dollar of assets it utilizes for everyday operations.ArcelorMittal Ownership Allocation
ArcelorMittal holds a total of 805 Million outstanding shares. ArcelorMittal SA retains significant amount of outstanding shares owned by insiders. An insider is usually defined as a CEO, other corporate executive, director, or institutional investor who own at least 10% of the company's outstanding shares. Since such a large part of the company is owned by insiders, it is advisable to analyze if each of these insiders have been buying or selling the stock in recent months. Please note that no matter how many assets the company secures, if the real value of the firm is less than the current market value, you may not be able to make money on it.ArcelorMittal Profitability Analysis
The company reported the revenue of 79.84 B. Net Income was 9.3 B with profit before overhead, payroll, taxes, and interest of 14.16 B.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 ArcelorMittal's current worth on a weekly basis. Our valuation model uses a comparative analysis of ArcelorMittal. We calculate exposure to ArcelorMittal's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of ArcelorMittal's related companies.ArcelorMittal, together with its subsidiaries, owns and operates steel manufacturing and mining facilities in Europe, North and South America, Asia, and Africa. The company was founded in 1976 and is headquartered in Luxembourg City, Luxembourg. ARCELORMITTAL operates under Steel classification in Germany and is traded on Frankfurt Stock Exchange. It employs 208583 people.
8 Steps to conduct ArcelorMittal's Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates ArcelorMittal'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.
Complementary Tools for ArcelorMittal Stock analysis
When running ArcelorMittal's 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 the 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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