Intrinsic value of Cleveland-Cliffs - CLF

Previous Close

$10.03

  Intrinsic Value

$136.63

stock screener

  Rating & Target

str. buy

+999%

Previous close

$10.03

 
Intrinsic value

$136.63

 
Up/down potential

+999%

 
Rating

str. buy

We calculate the intrinsic value of CLF stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Revenue (in 0001), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 3.0

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
   2
   3
   4
   5
   6
   7
   8
   9
   10
   11
   12
   13
   14
   15
   16
   17
   18
   19
   20
   21
   22
   23
   24
   25
   26
   27
   28
   29
   30
   31

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  51.60
  46.94
  42.75
  38.97
  35.57
  32.52
  29.77
  27.29
  25.06
  23.05
  21.25
  19.62
  18.16
  16.85
  15.66
  14.59
  13.64
  12.77
  11.99
  11.29
  10.67
  10.10
  9.59
  9.13
  8.72
  8.35
  8.01
  7.71
  7.44
  7.19
Revenue, $m
  3,533
  5,191
  7,410
  10,297
  13,960
  18,500
  24,006
  30,557
  38,215
  47,025
  57,017
  68,206
  80,593
  94,169
  108,917
  124,812
  141,831
  159,945
  179,129
  199,362
  220,625
  242,905
  266,198
  290,502
  315,825
  342,182
  369,594
  398,089
  427,702
  458,475
Variable operating expenses, $m
  1,547
  2,274
  3,245
  4,510
  6,115
  8,103
  10,515
  13,384
  16,738
  20,597
  24,974
  29,874
  35,300
  41,246
  47,705
  54,668
  62,122
  70,056
  78,459
  87,320
  96,634
  106,393
  116,595
  127,240
  138,331
  149,876
  161,882
  174,363
  187,333
  200,812
Fixed operating expenses, $m
  955
  976
  997
  1,019
  1,041
  1,064
  1,088
  1,112
  1,136
  1,161
  1,187
  1,213
  1,239
  1,267
  1,295
  1,323
  1,352
  1,382
  1,412
  1,443
  1,475
  1,508
  1,541
  1,575
  1,609
  1,645
  1,681
  1,718
  1,756
  1,794
Total operating expenses, $m
  2,502
  3,250
  4,242
  5,529
  7,156
  9,167
  11,603
  14,496
  17,874
  21,758
  26,161
  31,087
  36,539
  42,513
  49,000
  55,991
  63,474
  71,438
  79,871
  88,763
  98,109
  107,901
  118,136
  128,815
  139,940
  151,521
  163,563
  176,081
  189,089
  202,606
Operating income, $m
  1,031
  1,942
  3,167
  4,768
  6,804
  9,333
  12,404
  16,062
  20,341
  25,267
  30,857
  37,119
  44,054
  51,656
  59,917
  68,822
  78,357
  88,507
  99,258
  110,598
  122,516
  135,005
  148,062
  161,687
  175,885
  190,662
  206,031
  222,008
  238,613
  255,868
EBITDA, $m
  1,164
  2,137
  3,446
  5,156
  7,330
  10,029
  13,308
  17,212
  21,780
  27,038
  33,004
  39,687
  47,088
  55,202
  64,018
  73,521
  83,697
  94,529
  106,003
  118,104
  130,823
  144,151
  158,085
  172,625
  187,776
  203,546
  219,947
  236,997
  254,717
  273,131
Interest expense (income), $m
  184
  136
  124
  212
  330
  484
  679
  921
  1,214
  1,563
  1,971
  2,440
  2,972
  3,568
  4,228
  4,951
  5,736
  6,583
  7,489
  8,454
  9,476
  10,553
  11,686
  12,873
  14,113
  15,408
  16,756
  18,160
  19,620
  21,138
  22,715
Earnings before tax, $m
  895
  1,818
  2,955
  4,438
  6,320
  8,654
  11,483
  14,848
  18,778
  23,296
  28,417
  34,147
  40,486
  47,429
  54,966
  63,085
  71,774
  81,018
  90,804
  101,122
  111,963
  123,319
  135,190
  147,574
  160,477
  173,905
  187,871
  202,388
  217,475
  233,154
Tax expense, $m
  242
  491
  798
  1,198
  1,707
  2,336
  3,100
  4,009
  5,070
  6,290
  7,673
  9,220
  10,931
  12,806
  14,841
  17,033
  19,379
  21,875
  24,517
  27,303
  30,230
  33,296
  36,501
  39,845
  43,329
  46,954
  50,725
  54,645
  58,718
  62,951
Net income, $m
  653
  1,327
  2,157
  3,240
  4,614
  6,317
  8,383
  10,839
  13,708
  17,006
  20,744
  24,927
  29,555
  34,623
  40,125
  46,052
  52,395
  59,143
  66,287
  73,819
  81,733
  90,023
  98,689
  107,729
  117,148
  126,951
  137,146
  147,743
  158,757
  170,202

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  3,543
  5,206
  7,432
  10,328
  14,002
  18,556
  24,079
  30,649
  38,330
  47,167
  57,189
  68,411
  80,836
  94,453
  109,244
  125,188
  142,258
  160,426
  179,668
  199,962
  221,289
  243,636
  266,999
  291,376
  316,776
  343,212
  370,706
  399,287
  428,989
  459,854
Adjusted assets (=assets-cash), $m
  3,543
  5,206
  7,432
  10,328
  14,002
  18,556
  24,079
  30,649
  38,330
  47,167
  57,189
  68,411
  80,836
  94,453
  109,244
  125,188
  142,258
  160,426
  179,668
  199,962
  221,289
  243,636
  266,999
  291,376
  316,776
  343,212
  370,706
  399,287
  428,989
  459,854
Revenue / Adjusted assets
  0.997
  0.997
  0.997
  0.997
  0.997
  0.997
  0.997
  0.997
  0.997
  0.997
  0.997
  0.997
  0.997
  0.997
  0.997
  0.997
  0.997
  0.997
  0.997
  0.997
  0.997
  0.997
  0.997
  0.997
  0.997
  0.997
  0.997
  0.997
  0.997
  0.997
Average production assets, $m
  1,530
  2,248
  3,208
  4,459
  6,045
  8,010
  10,395
  13,231
  16,547
  20,362
  24,688
  29,533
  34,897
  40,775
  47,161
  54,044
  61,413
  69,256
  77,563
  86,324
  95,530
  105,178
  115,264
  125,787
  136,752
  148,165
  160,034
  172,372
  185,195
  198,519
Working capital, $m
  39
  57
  82
  113
  154
  203
  264
  336
  420
  517
  627
  750
  887
  1,036
  1,198
  1,373
  1,560
  1,759
  1,970
  2,193
  2,427
  2,672
  2,928
  3,196
  3,474
  3,764
  4,066
  4,379
  4,705
  5,043
Total debt, $m
  2,095
  3,592
  5,595
  8,202
  11,509
  15,607
  20,577
  26,491
  33,404
  41,357
  50,376
  60,477
  71,659
  83,914
  97,226
  111,576
  126,938
  143,290
  160,608
  178,872
  198,066
  218,179
  239,205
  261,145
  284,004
  307,797
  332,542
  358,264
  384,996
  412,775
Total liabilities, $m
  3,189
  4,686
  6,689
  9,295
  12,602
  16,700
  21,671
  27,585
  34,497
  42,450
  51,470
  61,570
  72,752
  85,007
  98,320
  112,669
  128,032
  144,383
  161,701
  179,965
  199,160
  219,273
  240,299
  262,238
  285,098
  308,891
  333,635
  359,358
  386,090
  413,869
Total equity, $m
  354
  521
  743
  1,033
  1,400
  1,856
  2,408
  3,065
  3,833
  4,717
  5,719
  6,841
  8,084
  9,445
  10,924
  12,519
  14,226
  16,043
  17,967
  19,996
  22,129
  24,364
  26,700
  29,138
  31,678
  34,321
  37,071
  39,929
  42,899
  45,985
Total liabilities and equity, $m
  3,543
  5,207
  7,432
  10,328
  14,002
  18,556
  24,079
  30,650
  38,330
  47,167
  57,189
  68,411
  80,836
  94,452
  109,244
  125,188
  142,258
  160,426
  179,668
  199,961
  221,289
  243,637
  266,999
  291,376
  316,776
  343,212
  370,706
  399,287
  428,989
  459,854
Debt-to-equity ratio
  5.910
  6.900
  7.530
  7.940
  8.220
  8.410
  8.550
  8.640
  8.710
  8.770
  8.810
  8.840
  8.860
  8.880
  8.900
  8.910
  8.920
  8.930
  8.940
  8.950
  8.950
  8.960
  8.960
  8.960
  8.970
  8.970
  8.970
  8.970
  8.970
  8.980
Adjusted equity ratio
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  653
  1,327
  2,157
  3,240
  4,614
  6,317
  8,383
  10,839
  13,708
  17,006
  20,744
  24,927
  29,555
  34,623
  40,125
  46,052
  52,395
  59,143
  66,287
  73,819
  81,733
  90,023
  98,689
  107,729
  117,148
  126,951
  137,146
  147,743
  158,757
  170,202
Depreciation, amort., depletion, $m
  133
  195
  279
  388
  526
  697
  904
  1,151
  1,439
  1,771
  2,147
  2,568
  3,035
  3,546
  4,101
  4,699
  5,340
  6,022
  6,745
  7,506
  8,307
  9,146
  10,023
  10,938
  11,892
  12,884
  13,916
  14,989
  16,104
  17,263
Funds from operations, $m
  786
  1,523
  2,436
  3,627
  5,140
  7,014
  9,287
  11,989
  15,147
  18,777
  22,891
  27,495
  32,589
  38,169
  44,226
  50,752
  57,735
  65,165
  73,032
  81,326
  90,040
  99,169
  108,711
  118,667
  129,040
  139,835
  151,062
  162,732
  174,861
  187,465
Change in working capital, $m
  13
  18
  24
  32
  40
  50
  61
  72
  84
  97
  110
  123
  136
  149
  162
  175
  187
  199
  211
  223
  234
  245
  256
  267
  279
  290
  302
  313
  326
  339
Cash from operations, $m
  773
  1,504
  2,412
  3,596
  5,099
  6,964
  9,226
  11,917
  15,062
  18,680
  22,781
  27,372
  32,453
  38,019
  44,064
  50,577
  57,548
  64,966
  72,821
  81,103
  89,806
  98,924
  108,455
  118,400
  128,761
  139,545
  150,760
  162,419
  174,535
  187,126
Maintenance CAPEX, $m
  -88
  -133
  -195
  -279
  -388
  -526
  -697
  -904
  -1,151
  -1,439
  -1,771
  -2,147
  -2,568
  -3,035
  -3,546
  -4,101
  -4,699
  -5,340
  -6,022
  -6,745
  -7,506
  -8,307
  -9,146
  -10,023
  -10,938
  -11,892
  -12,884
  -13,916
  -14,989
  -16,104
New CAPEX, $m
  -521
  -718
  -961
  -1,250
  -1,586
  -1,966
  -2,384
  -2,837
  -3,316
  -3,815
  -4,327
  -4,845
  -5,364
  -5,878
  -6,386
  -6,883
  -7,369
  -7,843
  -8,307
  -8,761
  -9,207
  -9,648
  -10,086
  -10,524
  -10,965
  -11,413
  -11,869
  -12,338
  -12,822
  -13,325
Cash from investing activities, $m
  -609
  -851
  -1,156
  -1,529
  -1,974
  -2,492
  -3,081
  -3,741
  -4,467
  -5,254
  -6,098
  -6,992
  -7,932
  -8,913
  -9,932
  -10,984
  -12,068
  -13,183
  -14,329
  -15,506
  -16,713
  -17,955
  -19,232
  -20,547
  -21,903
  -23,305
  -24,753
  -26,254
  -27,811
  -29,429
Free cash flow, $m
  165
  653
  1,256
  2,066
  3,125
  4,473
  6,145
  8,177
  10,596
  13,426
  16,684
  20,381
  24,521
  29,106
  34,132
  39,593
  45,480
  51,782
  58,492
  65,598
  73,093
  80,969
  89,224
  97,853
  106,858
  116,241
  126,007
  136,164
  146,724
  157,698
Issuance/(repayment) of debt, $m
  -209
  1,497
  2,003
  2,607
  3,307
  4,098
  4,971
  5,914
  6,913
  7,953
  9,020
  10,100
  11,182
  12,255
  13,313
  14,349
  15,363
  16,352
  17,318
  18,264
  19,194
  20,113
  21,026
  21,940
  22,860
  23,793
  24,745
  25,723
  26,732
  27,779
Issuance/(repurchase) of shares, $m
  761
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from financing (excl. dividends), $m  
  552
  1,497
  2,003
  2,607
  3,307
  4,098
  4,971
  5,914
  6,913
  7,953
  9,020
  10,100
  11,182
  12,255
  13,313
  14,349
  15,363
  16,352
  17,318
  18,264
  19,194
  20,113
  21,026
  21,940
  22,860
  23,793
  24,745
  25,723
  26,732
  27,779
Total cash flow (excl. dividends), $m
  717
  2,150
  3,259
  4,673
  6,432
  8,570
  11,116
  14,090
  17,509
  21,379
  25,704
  30,481
  35,703
  41,361
  47,445
  53,942
  60,842
  68,134
  75,809
  83,862
  92,287
  101,082
  110,250
  119,793
  129,718
  140,033
  150,752
  161,887
  173,456
  185,477
Retained Cash Flow (-), $m
  -1,414
  -166
  -223
  -290
  -367
  -455
  -552
  -657
  -768
  -884
  -1,002
  -1,122
  -1,242
  -1,362
  -1,479
  -1,594
  -1,707
  -1,817
  -1,924
  -2,029
  -2,133
  -2,235
  -2,336
  -2,438
  -2,540
  -2,644
  -2,749
  -2,858
  -2,970
  -3,087
Prev. year cash balance distribution, $m
  616
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
  -82
  1,984
  3,036
  4,383
  6,065
  8,115
  10,564
  13,433
  16,741
  20,496
  24,702
  29,359
  34,461
  40,000
  45,966
  52,348
  59,135
  66,317
  73,885
  81,832
  90,154
  98,848
  107,914
  117,355
  127,178
  137,390
  148,002
  159,029
  170,485
  182,390
Discount rate, %
  8.50
  8.93
  9.37
  9.84
  10.33
  10.85
  11.39
  11.96
  12.56
  13.19
  13.85
  14.54
  15.26
  16.03
  16.83
  17.67
  18.55
  19.48
  20.46
  21.48
  22.55
  23.68
  24.86
  26.11
  27.41
  28.78
  30.22
  31.73
  33.32
  34.99
PV of cash for distribution, $m
  -75
  1,672
  2,321
  3,011
  3,709
  4,374
  4,964
  5,441
  5,773
  5,939
  5,933
  5,759
  5,436
  4,991
  4,458
  3,874
  3,275
  2,693
  2,152
  1,671
  1,259
  921
  653
  448
  298
  191
  118
  71
  41
  23
Current shareholders' claim on cash, %
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0

Cleveland-Cliffs Inc, formerly Cliffs Natural Resources Inc., is a mining and natural resources company. The Company is a supplier of iron ore pellets to the North American steel industry from its mines and pellet plants located in Michigan and Minnesota. The Company's segments include U.S. Iron Ore and Asia Pacific Iron Ore. The Company is a producer of iron ore pellets, primarily selling production from U.S. Iron Ore to integrated steel companies in the United States, Canada and Mexico. Its Asia Pacific Iron Ore operations are located in Western Australia and consist of its Koolyanobbing operation. The Koolyanobbing operations serve the Asian iron ore markets with direct-shipped fines and lump ore. In addition, the Company operates an iron ore mining complex in Western Australia. In the United States, the Company owned four operational iron ore mines and one indefinitely idled mine.

FINANCIAL RATIOS  of  Cleveland-Cliffs (CLF)

Valuation Ratios
P/E Ratio 13.4
Price to Sales 1.1
Price to Book -1.6
Price to Tangible Book
Price to Cash Flow 7.7
Price to Free Cash Flow 10
Growth Rates
Sales Growth Rate 4.8%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -14.8%
Cap. Spend. - 3 Yr. Gr. Rate -39.7%
Financial Strength
Quick Ratio NaN
Current Ratio 0.1
LT Debt to Equity -148.6%
Total Debt to Equity -148.6%
Interest Coverage 2
Management Effectiveness
Return On Assets 18.2%
Ret/ On Assets - 3 Yr. Avg. -34.3%
Return On Total Capital 24.4%
Ret/ On T. Cap. - 3 Yr. Avg. -61.3%
Return On Equity -10.1%
Return On Equity - 3 Yr. Avg. -92.5%
Asset Turnover 1
Profitability Ratios
Gross Margin 18.4%
Gross Margin - 3 Yr. Avg. 18.8%
EBITDA Margin 24%
EBITDA Margin - 3 Yr. Avg. 25%
Operating Margin 19.3%
Oper. Margin - 3 Yr. Avg. 16.9%
Pre-Tax Margin 9.8%
Pre-Tax Margin - 3 Yr. Avg. 8.3%
Net Profit Margin 8.3%
Net Profit Margin - 3 Yr. Avg. -81%
Effective Tax Rate -5.8%
Eff/ Tax Rate - 3 Yr. Avg. 159.4%
Payout Ratio 0%

CLF stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the CLF stock intrinsic value calculation we used $2330.2 million for the last fiscal year's total revenue generated by Cleveland-Cliffs. The default revenue input number comes from 0001 income statement of Cleveland-Cliffs. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our CLF stock valuation model: a) initial revenue growth rate of 51.6% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 8.5%, whose default value for CLF is calculated based on our internal credit rating of Cleveland-Cliffs, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of Cleveland-Cliffs.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of CLF stock the variable cost ratio is equal to 43.8%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $934 million in the base year in the intrinsic value calculation for CLF stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 5.9% for Cleveland-Cliffs.

Corporate tax rate of 27% is the nominal tax rate for Cleveland-Cliffs. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the CLF stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for CLF are equal to 43.3%.

Life of production assets of 11.5 years is the average useful life of capital assets used in Cleveland-Cliffs operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for CLF is equal to 1.1%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $-444.3 million for Cleveland-Cliffs - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 297.953 million for Cleveland-Cliffs is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of Cleveland-Cliffs at the current share price and the inputted number of shares is $3.0 billion.

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COMPANY NEWS

▶ [$$] Cleveland-Cliffs CEO Lashes Out at Analyst, Short-Sellers   [Oct-19-18 06:22PM  The Wall Street Journal]
▶ Cleveland-Cliffs Q3 Earnings Preview   [Oct-18-18 04:06PM  Benzinga]
▶ Steel ETF Steady Amid Sector Downgrade   [Oct-16-18 11:06AM  ETF Trends]
▶ And Canada Makes Three   [Oct-02-18 09:15AM  Zacks]
▶ Options traders say these four stocks set to move   [Sep-20-18 01:23PM  CNBC Videos]
▶ What Am I Missing With This Cheap Mining Stock?   [Sep-15-18 10:20AM  Motley Fool]
▶ 5 Top Stocks to Challenge a Notorious September   [Sep-04-18 02:27PM  InvestorPlace]
▶ 5 Stocks Seen Plunging as Metal Prices Melt   [Aug-16-18 06:00AM  Investopedia]
▶ 5 Stocks With Amazingly High Profitability to Own Now   [Aug-01-18 10:38AM  InvestorPlace]
▶ Still Time to Buy Cleveland-Cliffs Stock After 46% Rally?   [Jul-25-18 11:28PM  InvestorPlace]
▶ Cleveland-Cliffs: 2Q Earnings Snapshot   [08:14AM  Associated Press]
▶ Earnings Preview For Cliffs Natural Resources   [Jul-19-18 02:52PM  Benzinga]
▶ Cleveland-Cliffs Inc. Addresses False Report   [02:56PM  Business Wire]

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