BlueScope Steel Limited

OTCPK:BLSF.Y Stock Report

Market Cap: US$6.0b

BlueScope Steel Valuation

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

Valuation Score

4/6

Valuation Score 4/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

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

Below Fair Value: BLSF.Y ($68.8) is trading below our estimate of fair value ($141.67)

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

Key Valuation Metric

Which metric is best to use when looking at relative valuation for BLSF.Y?

Key metric: As BLSF.Y is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for BLSF.Y. This is calculated by dividing BLSF.Y's market cap by their current earnings.
What is BLSF.Y's PE Ratio?
PE Ratio11.5x
EarningsAU$804.70m
Market CapAU$9.29b

Price to Earnings Ratio vs Peers

How does BLSF.Y's PE Ratio compare to its peers?

The above table shows the PE ratio for BLSF.Y vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average34.3x
TX Ternium
82.7x47.4%US$6.6b
CMC Commercial Metals
14.4x6.1%US$7.0b
ATI ATI
22.5x16.6%US$8.5b
ARCH Arch Resources
17.5x43.3%US$3.1b
BLSF.Y BlueScope Steel
11.5x8.4%US$9.3b

Price-To-Earnings vs Peers: BLSF.Y is good value based on its Price-To-Earnings Ratio (11.5x) compared to the peer average (34.3x).

Price to Earnings Ratio vs Industry

How does BLSF.Y's PE Ratio compare vs other companies in the US Metals and Mining Industry?

5 CompaniesPrice / EarningsEstimated GrowthMarket Cap
VITF.F Victoria Gold
2.1xn/aUS$23.43m
BMXI Brookmount Explorations
0.5xn/aUS$5.00m
RMRI Rocky Mountain Industrials
0.9xn/aUS$1.76m
ZCRM.F Zincore Metals
0.5xn/aUS$852.33k
BLSF.Y 11.5xIndustry Avg. 19.3xNo. of Companies6PE01224364860+
5 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: BLSF.Y is good value based on its Price-To-Earnings Ratio (11.5x) compared to the US Metals and Mining industry average (19.3x).

Price to Earnings Ratio vs Fair Ratio

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

BLSF.Y PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio11.5x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate BLSF.Y's Price-To-Earnings Fair Ratio for valuation analysis.

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.

Discover undervalued companies

Ecora Resources

UK£162.5m

Operates as a natural resource royalty and streaming company in Australia, North and South America, Europe, and internationally.

ECRA.F

UK£0.82

7D

-4.5%

1Y

-28.7%

Allied Gold

CA$1.1b

Explores for and produces mineral deposits in Africa.

AAUC.F

CA$2.47

7D

16.0%

1Y

-18.0%

CMOC Group

HK$159.9b

Engages in the mining, beneficiation, smelting, and refining of base and rare metals.

CMCL.F

HK$0.77

7D

-2.2%

1Y

29.7%