Discounted Cash Flow (DCF) Analysis Levered

ArcelorMittal S.A. (MT)

$26.135

-0.46 (-1.71%)
All numbers are in Millions, Currency in USD
Stock DCF: 29.40 | 26.135 | undervalue

Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 68,67976,03370,61553,27076,57180,927.9885,532.8890,399.8095,543.66100,980.21
Revenue (%)
Operating Cash Flow 4,5634,1966,0174,0829,9056,681.747,061.947,463.777,888.478,337.33
Operating Cash Flow (%)
Capital Expenditure -2,819-3,305-3,572-2,439-3,008-3,563.54-3,766.31-3,980.62-4,207.12-4,446.51
Capital Expenditure (%)
Free Cash Flow 1,7448912,4451,6436,8973,118.203,295.633,483.153,681.353,890.82

Weighted Average Cost Of Capital

Share price $ 26.135
Beta 2.047
Diluted Shares Outstanding 1,108
Cost of Debt
Tax Rate 17.03
After-tax Cost of Debt 5.14%
Risk-Free Rate
Market Risk Premium
Cost of Equity 13.374
Total Debt 8,401
Total Equity 28,957.58
Total Capital 37,358.58
Debt Weighting 22.49
Equity Weighting 77.51
Wacc

Build Up Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 68,67976,03370,61553,27076,57180,927.9885,532.8890,399.8095,543.66100,980.21
Operating Cash Flow 4,5634,1966,0174,0829,9056,681.747,061.947,463.777,888.478,337.33
Capital Expenditure -2,819-3,305-3,572-2,439-3,008-3,563.54-3,766.31-3,980.62-4,207.12-4,446.51
Free Cash Flow 1,7448912,4451,6436,8973,118.203,295.633,483.153,681.353,890.82
WACC
PV LFCF 2,796.092,649.922,511.392,380.102,255.68
SUM PV LFCF 12,593.18

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 11.52
Free cash flow (t + 1) 3,968.64
Terminal Value 41,687.37
Present Value of Terminal Value 24,168

Intrinsic Value

Enterprise Value 36,761.18
Net Debt 4,186
Equity Value 32,575.18
Shares Outstanding 1,108
Equity Value Per Share 29.40