{"id":559934,"date":"2026-07-26T06:18:09","date_gmt":"2026-07-26T06:18:09","guid":{"rendered":"https:\/\/www.newsbeep.com\/il\/559934\/"},"modified":"2026-07-26T06:18:09","modified_gmt":"2026-07-26T06:18:09","slug":"arcelormittal-enxtammt-stock-may-be-26-undervalued-on-cash-flow-strength","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/il\/559934\/","title":{"rendered":"ArcelorMittal (ENXTAM:MT) Stock May Be 26% Undervalued On Cash Flow Strength"},"content":{"rendered":"\n

Make better investment decisions<\/a> with Simply Wall St’s easy, visual tools that give you a competitive edge. <\/p>\n

ArcelorMittal stock has delivered a very strong 141.0% return over the past 3 years, yet both its Discounted Cash Flow (DCF) intrinsic value estimate and market multiples still point to the shares trading at a discount to what the fundamentals suggest. With the broader valuation checks also leaning cheap, the question is how much of that perceived upside is already reflected in a share price of US$58.94. <\/p>\n

Over 3 years, ArcelorMittal has returned 141.0%. This puts recent gains into context when weighing how much further the valuation case may run. <\/p>\n

Future cash flow generation from ArcelorMittal’s steel operations can support the current valuation, while exposure to cyclical demand and input costs may limit how reliably those cash flows are realized. <\/p>\n

ArcelorMittal screens as undervalued on most checks, with a high value score of 5 out of 6<\/a>, and the Discounted Cash Flow (DCF) work suggests the stock trades roughly 25.9% below its intrinsic value. <\/p>\n

The issue now is whether ArcelorMittal’s recent share price strength has already closed most of that valuation gap or if there is still a meaningful margin between market price and intrinsic value. <\/p>\n

ArcelorMittal delivered 108.3% returns over the last year. See how this stacks up to the rest of the Metals and Mining industry.<\/a> <\/p>\n

Is ArcelorMittal Still Cheap on Cash Flow? <\/p>\n

The Discounted Cash Flow (DCF) model estimates what ArcelorMittal is worth based on the cash it is expected to generate for shareholders. For ArcelorMittal, the model uses latest twelve month free cash flow of about US$662.5 million and assumes that cash flows grow from this base, with projections pointing to higher annual free cash flow over time rather than decline. <\/p>\n

On these assumptions, the 2 Stage Free Cash Flow to Equity model arrives at an intrinsic value of roughly \u20ac79.50 per share. Set against the current share price of \u20ac58.94, the DCF output implies the stock trades at a discount of about 25.9%. This indicates that the market price does not fully reflect the cash flows currently built into the model. <\/p>\n

Overall, the Discounted Cash Flow work indicates ArcelorMittal stock screens as undervalued relative to its estimated intrinsic value. <\/p>\n

Our Discounted Cash Flow (DCF) analysis suggests ArcelorMittal is undervalued by 25.9%. Track this in your watchlist<\/a> or portfolio<\/a>, or discover 246 more high quality undervalued stocks<\/a>. <\/p>\n

\"MT<\/a> MT Discounted Cash Flow as at Jul 2026 <\/p>\n

Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for ArcelorMittal.<\/a> <\/p>\n

Story Continues <\/p>\n

Does ArcelorMittal Look Undervalued on Earnings? <\/p>\n

The P\/E ratio is a useful way to look at ArcelorMittal because it links what you pay for the stock to the earnings the business is already generating. <\/p>\n

ArcelorMittal currently trades on a P\/E of about 17.5x, which is close to the Metals and Mining industry average of roughly 16.8x. Against similar companies, the peer group average P\/E is far higher at about 58.3x, so ArcelorMittal sits well below that peer benchmark. <\/p>\n

A more tailored yardstick, which adjusts for ArcelorMittal’s size, sector, profitability and risk profile, points to a fair P\/E of around 28.7x. Compared with the current 17.5x, this framework suggests investors are paying a lower multiple than might be expected for the business on these inputs. <\/p>\n

On the P\/E multiple, ArcelorMittal stock appears undervalued relative to both its peer group and an internally estimated fair ratio. <\/p>\n

\"ENXTAM:MT<\/a> ENXTAM:MT P\/E Ratio as at Jul 2026 <\/p>\n

See what the numbers say about this price \u2014 find out in our valuation breakdown.<\/a> <\/p>\n

The ArcelorMittal Narrative: What Would Justify Today’s Price? <\/p>\n

Simply Wall St Narratives pick up where the ArcelorMittal valuation puzzle leaves off by spelling out which assumptions on growth, margins and earnings would need to hold for the stock to be worth materially more or less than today’s price, and they sit on the company’s Community page. Each narrative ties a fair value to a particular view of ArcelorMittal’s potential catalysts and risks so you can see over time which storyline the business is more closely tracking. <\/p>\n

The community is split on ArcelorMittal, with one camp seeing disciplined reinvestment and buybacks as a support for value while the other worries heavy capex and policy risk could leave the stock stretched. <\/p>\n

Bull case: 5% undervalued <\/p>\n

“Share buybacks and optimized asset portfolio, including ongoing divestment of non-core\/low-margin assets and value-added capacity expansions, are driving higher ROIC and enabling each share to represent increased earning power… <\/p>\n

Read the full Bull Case<\/a> to see why ArcelorMittal could be undervalued<\/a> <\/p>\n

Bear case: 30% overvalued <\/p>\n

“Heavy multi year capital commitments to decarbonization, emissions compliance and asset modernization, including CO2 costs and ETS driven capex, could outpace incremental pricing power and dilute free cash flow conversion and return on capital employed… <\/p>\n

Read the full Bear Case<\/a> to see why ArcelorMittal could be overvalued<\/a> <\/p>\n

Do you think there’s more to the story for ArcelorMittal? Head over to our Community to see what others are saying!<\/a> <\/p>\n

The Bottom Line <\/p>\n

ArcelorMittal still screens as undervalued, with both the Discounted Cash Flow (DCF) intrinsic value estimate and the earnings multiples pointing to a gap between price and fundamentals. The key question is whether that discount compensates you for the execution and policy risks tied to heavy capex and cyclical steel demand. From here, everything hinges on whether ArcelorMittal can convert its investment plans into resilient free cash flow without eroding returns. That is what ultimately decides if the current discount is an opportunity or correctly prices in the risk of a value trap. <\/p>\n

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. <\/p>\n

Companies discussed in this article include MT.AS<\/a>. <\/p>\n

Have feedback on this article? Concerned about the content? Get in touch<\/a> with us directly. Alternatively, email editorial-team@simplywallst.com<\/a> <\/p>\n","protected":false},"excerpt":{"rendered":"Make better investment decisions with Simply Wall St’s easy, visual tools that give you a competitive edge. ArcelorMittal…\n","protected":false},"author":2,"featured_media":559935,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[91172,114,3297,78797,56544,85,77209,46,39402],"class_list":["post-559934","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-arcelormittal","tag-business","tag-cash-flow","tag-discounted-cash-flow","tag-free-cash-flow","tag-il","tag-intrinsic-value","tag-israel","tag-stock-trades"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/559934","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/comments?post=559934"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/559934\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media\/559935"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media?parent=559934"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/categories?post=559934"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/tags?post=559934"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}