Algoma Steel Group Valuation

Is 9ZY undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 9ZY when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 9ZY (€10) is trading below our estimate of fair value (€99.57)

Significantly Below Fair Value: 9ZY is trading below fair value by more than 20%.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for 9ZY?

Key metric: As 9ZY is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for 9ZY. This is calculated by dividing 9ZY's market cap by their current revenue.
What is 9ZY's PS Ratio?
PS Ratio0.6x
SalesCA$2.49b
Market CapCA$1.57b

Price to Sales Ratio vs Peers

How does 9ZY's PS Ratio compare to its peers?

The above table shows the PS ratio for 9ZY vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average0.2x
SZG Salzgitter
0.09x2.1%€887.0m
TKA thyssenkrupp
0.07x1.1%€2.4b
NDA Aurubis
0.2x4.2%€3.3b
STO3 Sto SE KGaA
0.4x1.8%€706.9m
9ZY Algoma Steel Group
0.6x11.2%€1.1b

Price-To-Sales vs Peers: 9ZY is expensive based on its Price-To-Sales Ratio (0.6x) compared to the peer average (0.2x).


Price to Sales Ratio vs Industry

How does 9ZY's PS Ratio compare vs other companies in the European Metals and Mining Industry?

35 CompaniesPrice / SalesEstimated GrowthMarket Cap
9ZY 0.6xIndustry Avg. 0.7xNo. of Companies35PS00.81.62.43.24+
35 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: 9ZY is good value based on its Price-To-Sales Ratio (0.6x) compared to the European Metals and Mining industry average (0.7x).


Price to Sales Ratio vs Fair Ratio

What is 9ZY's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

9ZY PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.6x
Fair PS Ratio0.2x

Price-To-Sales vs Fair Ratio: 9ZY is expensive based on its Price-To-Sales Ratio (0.6x) compared to the estimated Fair Price-To-Sales Ratio (0.2x).


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.


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