MT Valuation

ArcelorMittal SA

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34.940

+0.52(1.511%)1D

Overview
Forecast
Valuation
Earnings

MT Relative Valuation

MT's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, MT is overvalued; if below, it's undervalued.

Historical Valuation

ArcelorMittal SA (MT) is now in the Fair zone, suggesting that its current forward PE ratio of 8.43 is considered Fairly compared with the five-year average of 5.80. The fair price of ArcelorMittal SA (MT) is between 21.19 to 38.32 according to relative valuation methord.

Relative Value

Fair Zone

21.19-38.32

Current Price：34.42

Fair

8.43

Trailing

Forward

5.12

EV/EBITDA

ArcelorMittal SA. (MT) has a current EV/EBITDA of 5.12. The 5-year average EV/EBITDA is 3.65. The thresholds are as follows: Strongly Undervalued below 1.79, Undervalued between 1.79 and 2.72, Fairly Valued between 4.59 and 2.72, Overvalued between 4.59 and 5.52, and Strongly Overvalued above 5.52. The current Forward EV/EBITDA of 5.12 falls within the Overvalued range.

8.66

EV/EBIT

ArcelorMittal SA. (MT) has a current EV/EBIT of 8.66. The 5-year average EV/EBIT is 6.01. The thresholds are as follows: Strongly Undervalued below -0.18, Undervalued between -0.18 and 2.91, Fairly Valued between 9.10 and 2.91, Overvalued between 9.10 and 12.20, and Strongly Overvalued above 12.20. The current Forward EV/EBIT of 8.66 falls within the Historic Trend Line -Fairly Valued range.

0.39

ArcelorMittal SA. (MT) has a current PS of 0.39. The 5-year average PS is 0.34. The thresholds are as follows: Strongly Undervalued below 0.25, Undervalued between 0.25 and 0.29, Fairly Valued between 0.39 and 0.29, Overvalued between 0.39 and 0.44, and Strongly Overvalued above 0.44. The current Forward PS of 0.39 falls within the Overvalued range.

4.73

P/OCF

ArcelorMittal SA. (MT) has a current P/OCF of 4.73. The 5-year average P/OCF is 3.21. The thresholds are as follows: Strongly Undervalued below 1.75, Undervalued between 1.75 and 2.48, Fairly Valued between 3.94 and 2.48, Overvalued between 3.94 and 4.68, and Strongly Overvalued above 4.68. The current Forward P/OCF of 4.73 falls within the Strongly Overvalued range.

22.11

P/FCF

ArcelorMittal SA. (MT) has a current P/FCF of 22.11. The 5-year average P/FCF is 16.02. The thresholds are as follows: Strongly Undervalued below -20.89, Undervalued between -20.89 and -2.43, Fairly Valued between 34.48 and -2.43, Overvalued between 34.48 and 52.93, and Strongly Overvalued above 52.93. The current Forward P/FCF of 22.11 falls within the Historic Trend Line -Fairly Valued range.

ArcelorMittal SA (MT) has a current Price-to-Book (P/B) ratio of 0.48. Compared to its 3-year average P/B ratio of 0.40 , the current P/B ratio is approximately 18.01% higher. Relative to its 5-year average P/B ratio of 0.49, the current P/B ratio is about -3.78% higher. ArcelorMittal SA (MT) has a Forward Free Cash Flow (FCF) yield of approximately 3.49%. Compared to its 3-year average FCF yield of 15.35%, the current FCF yield is approximately -77.25% lower. Relative to its 5-year average FCF yield of 16.25% , the current FCF yield is about -78.52% lower.

0.48

P/B

Median3y

0.40

Median5y

0.49

3.49

FCF Yield

Median3y

15.35

Median5y

16.25

Competitors Valuation Multiple

The average P/S ratio for MT's competitors is 0.90, providing a benchmark for relative valuation. ArcelorMittal SA Corp (MT) exhibits a P/S ratio of 0.39, which is -56.18% above the industry average. Given its robust revenue growth of -1.99%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of MT increased by 45.72% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 1.69 to 10.56.

The secondary factor is the Revenue Growth, contributed -1.99%to the performance.

Overall, the performance of MT in the past 1 year is driven by P/E Change. Which is more unsustainable.

-1.99%

16.25B → 15.93B

Revenue Growth

-476.39%

-3.05 → 11.48

Margin Expansion

524.10%

1.69 → 10.56

P/E Change

45.72%