DCF Tool

CLF

Cleveland-Cliffs Inc – Iron Ore Mining
arcelormittal usa is part of arcelormittal, the world’s leading steel and mining company. guided by a philosophy to produce safe, sustainable steel, we are a leading supplier of quality steel products in major north american markets including automotive, construction, pipe and tube, appliance, container and machinery. arcelormittal usa employs more than 20,000 people at 27 operations across 13 of the united states. we aim to give our employees every chance to flourish in their careers and grow as part of a global company. we offer a wealth of diverse opportunities. whether you work in production in pennsylvania or as a purchaser in indiana, joining arcelormittal is the start of a journey that, we hope, will lead to a rewarding career. we are always looking for the best and brightest minds to help us transform the future of steel.
Analysis Results
Intrinsic Value $39.01
Latest Price $20.42
Relative Value 48% undervalued
Thoughts on this result? Let us know.
Ad
Cash Flow (Billions)
Analysis Parameters
%
%
%
New Ticker
Ad
Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 11.6%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 11.3%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 11.6%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (billion) Present value (billion)
2024 1.45 1.3
2025 1.62 1.3
2026 1.8 1.31
2027 2.01 1.31
2028 2.24 1.31
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 24.6 billion. This corresponds to a present value of 12.9 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 6.53 billion. Adding in the terminal value gives a total present value of 19.4 billion.

There are presently 498.0 million outstanding shares, so the intrinsic value per share is 39.01.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 6,636,000,000
Current Cash 198,000,000
Current Liabilities 3,508,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) 2,930,000,000
Change in NCWC -917,000,000
EBIT 814,000,000
Tax Provision 148,000,000
Depreciation and Amortization 973,000,000
Capital Expenditure -646,000,000
Unlevered Free Cash Flow 22,204,355
Current Assets 7,422,000,000
Current Cash 26,000,000
Current Liabilities 3,549,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) 3,847,000,000
Change in NCWC -197,000,000
EBIT 2,053,000,000
Tax Provision 423,000,000
Depreciation and Amortization 1,034,000,000
Capital Expenditure -943,000,000
Unlevered Free Cash Flow 1,463,470,489
Current Assets 7,653,000,000
Current Cash 48,000,000
Current Liabilities 3,561,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) 4,044,000,000
Change in NCWC 1,787,000,000
EBIT 4,112,000,000
Tax Provision 773,000,000
Depreciation and Amortization 897,000,000
Capital Expenditure -705,000,000
Unlevered Free Cash Flow 5,255,192,479
Current Assets 5,298,000,000
Current Cash 112,000,000
Current Liabilities 2,929,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) 2,257,000,000
Change in NCWC 2,121,100,000
EBIT 8,000,000
Tax Provision -111,000,000
Depreciation and Amortization 308,000,000
Capital Expenditure -525,000,000
Unlevered Free Cash Flow 1,912,100,000
Current Assets 897,900,000
Current Cash 352,600,000
Current Liabilities 409,400,000
Current Debt 0
Non-Cash Working Capital (NCWC) 135,900,000
Change in NCWC -52,300,000
EBIT 456,300,000
Tax Provision 17,600,000
Depreciation and Amortization 85,100,000
Capital Expenditure -639,000,000
Unlevered Free Cash Flow -175,631,752
Current Assets 1,479,600,000
Current Cash 823,200,000
Current Liabilities 468,200,000
Current Debt 0
Non-Cash Working Capital (NCWC) 188,200,000
Change in NCWC 103,500,000
EBIT 692,800,000
Tax Provision -475,200,000
Depreciation and Amortization 89,000,000
Capital Expenditure -208,600,000
Unlevered Free Cash Flow 676,700,000
Current Assets 1,544,600,000
Current Cash 1,007,700,000
Current Liabilities 452,200,000
Current Debt 0
Non-Cash Working Capital (NCWC) 84,700,000
Change in NCWC -25,400,000
EBIT 395,900,000
Tax Provision -252,400,000
Depreciation and Amortization 87,700,000
Capital Expenditure -151,700,000
Unlevered Free Cash Flow 306,500,000
Current Assets 824,600,000
Current Cash 323,400,000
Current Liabilities 391,100,000
Current Debt 0
Non-Cash Working Capital (NCWC) 110,100,000
Change in NCWC -5,700,000
EBIT 271,500,000
Tax Provision -12,200,000
Depreciation and Amortization 115,400,000
Capital Expenditure -69,100,000
Unlevered Free Cash Flow 312,100,000
Current Assets 982,700,000
Current Cash 285,200,000
Current Liabilities 581,700,000
Current Debt 0
Non-Cash Working Capital (NCWC) 115,800,000
Change in NCWC -179,900,000
EBIT 126,400,000
Tax Provision 169,300,000
Depreciation and Amortization 134,000,000
Capital Expenditure -80,800,000
Unlevered Free Cash Flow -68,669,073
Current Assets 1,448,900,000
Current Cash 290,900,000
Current Liabilities 958,600,000
Current Debt 96,300,000
Non-Cash Working Capital (NCWC) 295,700,000
Change in NCWC 135,800,000
EBIT 224,000,000
Tax Provision -1,302,000,000
Depreciation and Amortization 504,000,000
Capital Expenditure -284,100,000
Unlevered Free Cash Flow 579,700,000
Current Assets 1,560,000,000
Current Cash 335,500,000
Current Liabilities 1,085,500,000
Current Debt 20,900,000
Non-Cash Working Capital (NCWC) 159,900,000
Change in NCWC -7,500,000
EBIT 784,300,000
Tax Provision 55,100,000
Depreciation and Amortization 593,300,000
Capital Expenditure -861,600,000
Unlevered Free Cash Flow 404,342,540
Current Assets 1,650,000,000
Current Cash 195,200,000
Current Liabilities 1,381,500,000
Current Debt 94,100,000
Non-Cash Working Capital (NCWC) 167,400,000
Change in NCWC 316,800,000
EBIT 342,000,000
Tax Provision 255,900,000
Depreciation and Amortization 525,800,000
Capital Expenditure -1,127,500,000
Unlevered Free Cash Flow 57,100,000

This analysis is provided for informational purposes only and does not constitute financial or investing advice. For more information on the advantages and limitations of DCF analysis see background. This information is provided on an "as is" basis. No warranty, expressed or implied, is made regarding accuracy, adequacy, completeness, legality, reliability or usefulness of any information. By using this site you agree that under no circumstances shall Valuation Tools LLC be held liable for any loss or damage caused by information obtained from this website including any articles, data, videos, its social media accounts, or any other materials.