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How Does ArcelorMittal Compare to Its Industry Peers?

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Nov. 9 2015, Published 10:07 a.m. ET

ArcelorMittal and its peers

In this article, we’ll compare ArcelorMittal with its peers based on the following key metrics:

  • The PBV (price-to-book value) ratios of ArcelorMittal (MT), Vale (VALE), POSCO (PKX), Ternium (TX), and Gerdau (GGB) are 0.26x, 0.49x, 0.34x, 0.70x, and 0.28x, respectively.

  • The PS (price-to-sales) ratios of ArcelorMittal, Vale, POSCO, Ternium, and Gerdau are 0.12x, 0.90x, 0.25x, 0.37x, and 0.21x, respectively.

Thus, peers have outperformed ArcelorMittal based on PBV and PS.

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ETFs that invest in ArcelorMittal

The VanEck Vectors Steel ETF (SLX) invests 4.4% of its holdings in ArcelorMittal. The ETF tracks a market-cap-weighted index of global steel firms.

The iShares MSCI Global Select Metals & Mining Producers (PICK) invests 1.5% of its holdings in ArcelorMittal. The ETF tracks a market-cap-weighted index of global mining firms.

The iShares S&P Global Materials ETF (MXI) invests 0.59% of its holdings in ArcelorMittal. The ETF tracks a market-cap-weighted index of global material companies.

Comparing ArcelorMittal and its ETFs

Now let’s compare ArcelorMittal with the ETFs that invest in it:

  • The year-to-date price movements of ArcelorMittal, SLX, PICK, and MXI are -49.8%, -32.6%, -29.1%, and -10.7%, respectively.
  • The PBV ratios of ArcelorMittal, SLX, PICK, and MXI are 0.26x, 0.62x, 0.58x, and 1.2x, respectively.

Thus, these ETFs have outperformed ArcelorMittal based on price movement and PBV.

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