Why We’ve Raised Our Price Estimate For ArcelorMittal To $23

May 23rd, 2017 by Trefis Team
-1.14%
Downside
25.11
Market
24.83
Trefis
MT: ArcelorMittal logo
MT
ArcelorMittal

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).

MT Reverse Stock Split

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.

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Have more questions about ArcelorMittal? See the links below.

Notes:

1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com
2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis for ArcelorMittal

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Notes:
  1. ArcelorMittal announces completion of Reverse Stock Split, ArcelorMittal News Release [↩]