Iron ore price, page-4447

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Simply Wall St News
Financially Strong And High Value Stocks
Isabel Galloway

Fortescue Metals Group Limited engages in the exploration, development, production, processing, and sale of iron ore in Australia, China, and internationally. Formed in 2003, and currently headed by CEO Neville Power, the company employs 3,890 people and with the stock’s market cap sitting at AUD A$14.44B, it comes under the large-cap category.

FMG’s stock is currently trading at -37% beneath its actual level of $7.42, at the market price of $4.64, according to my discounted cash flow model. This price and value mismatch indicates a potential opportunity to buy the stock at a low price. Moreover, FMG’s PE ratio is currently around 5.3x relative to its metals and mining peer level of 13.8x, indicating that relative to its competitors, we can buy FMG’s stock at a cheaper price today. FMG is also a financially robust company, as short-term assets amply cover upcoming and long-term liabilities. The stock’s debt-to equity ratio of 46% has been dropping for the last couple of years demonstrating its capability to pay down its debt.

DYOR

Frank