ArcelorMittal South Africa Valuation

Q: What is the Fair Price of ISC1 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

ISC1 (€0.06) is trading below our estimate of [[fair value]] (€0.68)

Is ISC1 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

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 ISC1 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: ISC1 (€0.06) is trading below our estimate of fair value (€0.68)

Significantly Below Fair Value: ISC1 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for ISC1?

Key metric: As ISC1 is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for ISC1. This is calculated by dividing ISC1's market cap by their current revenue.
What is ISC1's PS Ratio?
PS Ratio	0.03x
Sales	R41.10b
Market Cap	R1.38b

ISC1 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	0.2x
Enterprise Value/EBITDA	-8.9x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does ISC1's PS Ratio compare to its peers?

The above table shows the PS ratio for ISC1 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PS	Estimated Growth	Market Cap
Peer Average	0.5x
SZG Salzgitter	0.09x	2.1%	€917.3m
TKA thyssenkrupp	0.07x	1.1%	€2.4b
BNN BRAIN Biotech	1.3x	8.5%	€71.2m
NTG Nabaltec	0.6x	5.0%	€126.7m
ISC1 ArcelorMittal South Africa	0.03x	10.4%	€1.4b

Price-To-Sales vs Peers: ISC1 is good value based on its Price-To-Sales Ratio (0x) compared to the peer average (0.5x).

Price to Sales Ratio vs Industry

How does ISC1's PS Ratio compare vs other companies in the European Metals and Mining Industry?

36 Companies	Price / Sales	Estimated Growth	Market Cap
Industry Avg.	0.7x	1.9%
ISC1 ArcelorMittal South Africa	0.03x	10.4%	US$75.95m

36 Companies		Estimated Growth	Market Cap
Industry Avg.	0.7x	28.0%
ISC1 ArcelorMittal South Africa	0.03x	110.6%	US$75.95m

No more companies

Price-To-Sales vs Industry: ISC1 is good value based on its Price-To-Sales Ratio (0x) compared to the European Metals and Mining industry average (0.7x).

Price to Sales Ratio vs Fair Ratio

What is ISC1'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.

ISC1 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	0.03x
Fair PS Ratio	0.5x

Price-To-Sales vs Fair Ratio: ISC1 is good value based on its Price-To-Sales Ratio (0x) compared to the estimated Fair Price-To-Sales Ratio (0.5x).

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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