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United States Steel Corp. – Iron and Steel Mills and Ferroalloy Manufacturing
united states steel corporation, headquartered in pittsburgh, pa., is an integrated steel producer with major production operations in the united states and central europe and an annual raw steelmaking capability of 24.4 million net tons. the company manufactures a wide range of value-added steel sheet and tubular products for the automotive, appliance, container, industrial machinery, construction, and oil and gas industries. u. s. steel’s operations are efficient and high tech, and the company’s customer focus is intense. u. s. steel has been making steel for more than 110 years, always with an eye toward cost-effectively serving customer needs. companies that want to be competitive in an increasingly global marketplace must have a global outlook and presence. u. s. steel continually looks for opportunities to strengthen the company’s existing presence in the global arena and strives to meet and set world-class standards in everything it does. at u. s. steel, our strength is our peop
Analysis Results
Intrinsic Value $374.18
Latest Price $36.24
Relative Value 90% undervalued
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Cash Flow (Billions)
Analysis Parameters
New Ticker
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 16.1%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 3.6%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 16.1%, 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 1.66 1.6
2024 1.93 1.8
2025 2.24 2.01
2026 2.6 2.26
2027 3.02 2.53
Terminal Value

Assuming the company was sold after the projection period at an exit multiple of 30, the terminal value of the company would be 90.6 billion. This corresponds to a present value of 73.3 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 10.2 billion. Adding in the terminal value gives a total present value of 83.5 billion.

There are presently 223.0 million outstanding shares, so the intrinsic value per share is 374.18.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 7,866,000,000
Current Cash 3,504,000,000
Current Liabilities 3,959,000,000
Current Debt 63,000,000
Non-Cash Working Capital (NCWC) 466,000,000
Change in NCWC -340,000,000
EBIT 3,318,000,000
Tax Provision 735,000,000
Depreciation and Amortization 791,000,000
Capital Expenditure -1,769,000,000
Unlevered Free Cash Flow 1,251,693,771
Current Assets 7,152,000,000
Current Cash 2,522,000,000
Current Liabilities 3,852,000,000
Current Debt 28,000,000
Non-Cash Working Capital (NCWC) 806,000,000
Change in NCWC 823,000,000
EBIT 4,695,000,000
Tax Provision 170,000,000
Depreciation and Amortization 791,000,000
Capital Expenditure -863,000,000
Unlevered Free Cash Flow 5,262,263,812
Current Assets 4,432,000,000
Current Cash 1,985,000,000
Current Liabilities 2,656,000,000
Current Debt 192,000,000
Non-Cash Working Capital (NCWC) -17,000,000
Change in NCWC -470,000,000
EBIT -851,000,000
Tax Provision -142,000,000
Depreciation and Amortization 643,000,000
Capital Expenditure -725,000,000
Unlevered Free Cash Flow -1,403,000,000
Current Assets 3,813,000,000
Current Cash 749,000,000
Current Liabilities 2,625,000,000
Current Debt 14,000,000
Non-Cash Working Capital (NCWC) 453,000,000
Change in NCWC -245,000,000
EBIT 29,000,000
Tax Provision 178,000,000
Depreciation and Amortization 616,000,000
Capital Expenditure -1,252,000,000
Unlevered Free Cash Flow -852,000,000
Current Assets 4,830,000,000
Current Cash 1,000,000,000
Current Liabilities 3,197,000,000
Current Debt 65,000,000
Non-Cash Working Capital (NCWC) 698,000,000
Change in NCWC 214,000,000
EBIT 1,077,000,000
Tax Provision -303,000,000
Depreciation and Amortization 521,000,000
Capital Expenditure -1,001,000,000
Unlevered Free Cash Flow 811,000,000
Current Assets 4,755,000,000
Current Cash 1,553,000,000
Current Liabilities 2,721,000,000
Current Debt 3,000,000
Non-Cash Working Capital (NCWC) 484,000,000
Change in NCWC -76,000,000
EBIT 554,000,000
Tax Provision -86,000,000
Depreciation and Amortization 501,000,000
Capital Expenditure -505,000,000
Unlevered Free Cash Flow 474,000,000
Current Assets 4,356,000,000
Current Cash 1,515,000,000
Current Liabilities 2,331,000,000
Current Debt 50,000,000
Non-Cash Working Capital (NCWC) 560,000,000
Change in NCWC -499,000,000
EBIT -26,000,000
Tax Provision 24,000,000
Depreciation and Amortization 507,000,000
Capital Expenditure -306,000,000
Unlevered Free Cash Flow -324,000,000
Current Assets 3,917,000,000
Current Cash 755,000,000
Current Liabilities 2,148,000,000
Current Debt 45,000,000
Non-Cash Working Capital (NCWC) 1,059,000,000
Change in NCWC -827,000,000
EBIT -491,000,000
Tax Provision 183,000,000
Depreciation and Amortization 547,000,000
Capital Expenditure -500,000,000
Unlevered Free Cash Flow -1,271,000,000
Current Assets 6,431,000,000
Current Cash 1,354,000,000
Current Liabilities 3,569,000,000
Current Debt 378,000,000
Non-Cash Working Capital (NCWC) 1,886,000,000
Change in NCWC -666,000,000
EBIT 1,044,000,000
Tax Provision 68,000,000
Depreciation and Amortization 627,000,000
Capital Expenditure -419,000,000
Unlevered Free Cash Flow 168,400,000
Current Assets 6,078,000,000
Current Cash 604,000,000
Current Liabilities 3,245,000,000
Current Debt 323,000,000
Non-Cash Working Capital (NCWC) 2,552,000,000
Change in NCWC 721,000,000
EBIT 154,000,000
Tax Provision -560,000,000
Depreciation and Amortization 684,000,000
Capital Expenditure -489,000,000
Unlevered Free Cash Flow 1,070,000,000
Current Assets 5,374,000,000
Current Cash 570,000,000
Current Liabilities 2,990,000,000
Current Debt 17,000,000
Non-Cash Working Capital (NCWC) 1,831,000,000
Change in NCWC -310,000,000
EBIT 527,000,000
Tax Provision 131,000,000
Depreciation and Amortization 661,000,000
Capital Expenditure -723,000,000
Unlevered Free Cash Flow 24,000,000

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