Why We’ve Raised Our Price Estimate For ArcelorMittal To $23
ArcelorMittal announced the completion of a 1:3 reverse stock split yesterday, with every three shares of the company being consolidated into one new share. [1] Whereas the reverse stock split does not impact the company’s market capitalization or value, it has translated into a change in the company’s shares outstanding, and therefore stock price (per share).
The change in the company’s shares outstanding has resulted into a near-tripling of the company’s stock price. We have incorporated the changes to ArcelorMittal’s shares outstanding into our model for the company’s stock. This has resulted into our new $23.37 price estimate for ArcelorMittal.
Have more questions about ArcelorMittal? See the links below.
- ArcelorMittal’s Q1 2017 Earnings Review: Improved Business Conditions Drive Earnings Improvement
- Iron Ore & Crude Oil: The Similarities & Differences In The Market Dynamics Of These Commodities
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Notes:
- ArcelorMittal announces completion of Reverse Stock Split, ArcelorMittal News Release [↩]