ArcelorMittal - Comparative Multiple Analysis

ArcelorMittal (Comparative Multiple Analysis)


Notes on the Comparative Multiple Analysis of ArcelorMittal

WikiWealth compares ArcelorMittal's revenue, EBITDA, and EBIT multiples to their peers in order to determine the appropriate fair valuation. Click in the top right corner to experiment with ArcelorMittal's comparative analysis.

Notes from the analysis:

1. WikiWealth uses quantitative measures to determine the multiple range for ArcelorMittal.
2. Free cash flow to the firm (FCF) multiple is free cash flow to equity holders plus interest owed to ArcelorMittal's debt holders.
3. Multiples incorporate benefits due to economies of scale; WikiWealth compares absolute enterprise value multiples to competitor's multiples.
4. WikiWealth excludes outliers when calculating individual company multiples.

Helpful Information for ArcelorMittal's Analysis

How does this work? The Comparative Investment Analysis determines the value of ArcelorMittal by comparing ArcelorMittal financial ratios, prices, growth rates, margins, etc. to those of relevant peer groups.

Value Investing Importance? This method is widely used by investment professionals to determine the correct price of investments, especially initial public offerings (IPOs). It is one element of WikiWealth's three Wall Street approaches used to determine the correct fair value of ArcelorMittal.

See the ArcelorMittal cash flow (DCF) analysis for a completely different approach that's popular on Wall Street for determining the value of an investment in ArcelorMittal.

Also, see the ArcelorMittal's buffett intrinsic valuation analysis for WikiWealth's attempt to replicate the investing formula's used by Warren Buffett and ArcelorMittal's valuation conclusion for a quick summary.