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MT

ArcelorMittal – Iron and Steel Mills and Ferroalloy Manufacturing
ArcelorMittal S.A. is a Luxembourgian multinational steel manufacturing corporation headquartered in Luxembourg City. It was formed in 2006 from the takeover and merger of Arcelor by Indian-owned Mittal Steel.
Analysis Results
Intrinsic Value $359.85
Latest Price $25.62
Relative Value 93% undervalued
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Cash Flow (Billions)
Analysis Parameters
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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 13.3%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 7.8%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 13.3%, 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)
2023 12.9 12.0
2024 14.7 12.6
2025 16.6 13.3
2026 18.8 13.9
2027 21.3 14.7
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 377 billion. This corresponds to a present value of 240 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 66.5 billion. Adding in the terminal value gives a total present value of 307 billion.

There are presently 853.0 million outstanding shares, so the intrinsic value per share is 359.85.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 37,118,000,000
Current Cash 9,300,000,000
Current Liabilities 22,398,000,000
Current Debt 2,583,000,000
Non-Cash Working Capital (NCWC) 8,003,000,000
Change in NCWC -467,000,000
EBIT 12,491,000,000
Tax Provision 1,717,000,000
Depreciation and Amortization 2,580,000,000
Capital Expenditure -3,468,000,000
Unlevered Free Cash Flow 9,230,442,736
Current Assets 34,939,000,000
Current Cash 4,215,000,000
Current Liabilities 24,167,000,000
Current Debt 1,913,000,000
Non-Cash Working Capital (NCWC) 8,470,000,000
Change in NCWC 6,257,000,000
EBIT 18,849,000,000
Tax Provision 2,460,000,000
Depreciation and Amortization 2,523,000,000
Capital Expenditure -3,008,000,000
Unlevered Free Cash Flow 22,048,542,857
Current Assets 27,973,000,000
Current Cash 5,600,000,000
Current Liabilities 22,667,000,000
Current Debt 2,507,000,000
Non-Cash Working Capital (NCWC) 2,213,000,000
Change in NCWC -3,118,000,000
EBIT 947,000,000
Tax Provision 1,666,000,000
Depreciation and Amortization 2,960,000,000
Capital Expenditure -2,439,000,000
Unlevered Free Cash Flow -3,316,000,000
Current Assets 28,616,000,000
Current Cash 4,867,000,000
Current Liabilities 21,287,000,000
Current Debt 2,869,000,000
Non-Cash Working Capital (NCWC) 5,331,000,000
Change in NCWC -4,684,000,000
EBIT 1,552,000,000
Tax Provision 459,000,000
Depreciation and Amortization 3,067,000,000
Capital Expenditure -3,572,000,000
Unlevered Free Cash Flow -3,637,000,000
Current Assets 32,475,000,000
Current Cash 2,172,000,000
Current Liabilities 23,455,000,000
Current Debt 3,167,000,000
Non-Cash Working Capital (NCWC) 10,015,000,000
Change in NCWC 4,469,000,000
EBIT 7,891,000,000
Tax Provision -349,000,000
Depreciation and Amortization 2,799,000,000
Capital Expenditure -3,305,000,000
Unlevered Free Cash Flow 11,854,000,000
Current Assets 26,745,000,000
Current Cash 2,574,000,000
Current Liabilities 21,410,000,000
Current Debt 2,785,000,000
Non-Cash Working Capital (NCWC) 5,546,000,000
Change in NCWC 2,030,000,000
EBIT 5,882,000,000
Tax Provision 432,000,000
Depreciation and Amortization 2,768,000,000
Capital Expenditure -2,819,000,000
Unlevered Free Cash Flow 7,353,505,692
Current Assets 22,247,000,000
Current Cash 2,501,000,000
Current Liabilities 18,115,000,000
Current Debt 1,885,000,000
Non-Cash Working Capital (NCWC) 3,516,000,000
Change in NCWC 925,000,000
EBIT 4,776,000,000
Tax Provision 986,000,000
Depreciation and Amortization 2,721,000,000
Capital Expenditure -2,444,000,000
Unlevered Free Cash Flow 4,246,700,000
Current Assets 22,326,000,000
Current Cash 4,002,000,000
Current Liabilities 18,041,000,000
Current Debt 2,308,000,000
Non-Cash Working Capital (NCWC) 2,591,000,000
Change in NCWC -2,972,000,000
EBIT -4,663,000,000
Tax Provision 902,000,000
Depreciation and Amortization 3,192,000,000
Capital Expenditure -2,707,000,000
Unlevered Free Cash Flow -7,150,000,000
Current Assets 28,057,000,000
Current Cash 3,893,000,000
Current Liabilities 21,123,000,000
Current Debt 2,522,000,000
Non-Cash Working Capital (NCWC) 5,563,000,000
Change in NCWC -1,247,000,000
EBIT 3,034,000,000
Tax Provision 454,000,000
Depreciation and Amortization 3,939,000,000
Capital Expenditure -3,665,000,000
Unlevered Free Cash Flow 2,061,000,000
Current Assets 34,025,000,000
Current Cash 6,072,000,000
Current Liabilities 25,235,000,000
Current Debt 4,092,000,000
Non-Cash Working Capital (NCWC) 6,810,000,000
Change in NCWC -1,107,000,000
EBIT 1,197,000,000
Tax Provision 215,000,000
Depreciation and Amortization 4,695,000,000
Capital Expenditure -3,452,000,000
Unlevered Free Cash Flow 1,333,000,000
Current Assets 31,794,000,000
Current Cash 4,398,000,000
Current Liabilities 23,818,000,000
Current Debt 4,339,000,000
Non-Cash Working Capital (NCWC) 7,917,000,000
Change in NCWC -2,827,000,000
EBIT -3,226,000,000
Tax Provision -1,925,000,000
Depreciation and Amortization 4,684,000,000
Capital Expenditure -4,683,000,000
Unlevered Free Cash Flow -6,052,000,000

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