Published on 2 Jun 2024 on Simply Wall St. via Yahoo Finance
An Intrinsic Calculation For ArcelorMittal S.A. (AMS:MT) Suggests It's 36% Undervalued
Key Insights
The projected fair value for ArcelorMittal is €37.87 based on 2 Stage Free Cash Flow to EquityArcelorMittal's €24.16 share price signals that it might be 36% undervaluedOur fair value estimate is 20% higher than ArcelorMittal's analyst price target of US$31.48
Today we'll do a simple run through of a valuation method used to estimate the attractiveness of ArcelorMittal S.A. (AMS:MT) as an investment opportunity by taking the expected future cash flows and discounting them to their present value. We will take advantage of the Discounted Cash Flow (DCF) model for this purpose. Models like these may appear beyond the comprehension of a lay person, but they're fairly easy to follow.