Steel · NYSE
Current Price
$10.25
Intrinsic Value
Use the calculator below to estimate
Run a full DCF analysis on Cleveland-Cliffs Inc. with auto-filled fundamentals, adjustable assumptions, and sensitivity heatmap.
Cleveland-Cliffs Inc. operates as a flat-rolled steel producer in North America. The company offers carbon steel products, such as hot-rolled, cold-rolled, electrogalvanized, hot-dip galvanized, hot-dip galvannealed, aluminized, enameling, and advanced high-strength steel products; stainless steel products; plates; and grain oriented and non-oriented electrical steel products. It also provides tubular components, including carbon steel, stainless steel, and electric resistance welded tubing. In addition, the company offers tinplate products, such as electrolytic tin coated and chrome coated sheet, and tin mill products; tooling and sampling; raw materials; ingots, rolled blooms, and cast blooms; and hot-briquetted iron products. Further, it owns five iron ore mines in Minnesota and Michigan. The company serves automotive, infrastructure and manufacturing, distributors and converters, and steel producers. Cleveland-Cliffs Inc. was formerly known as Cliffs Natural Resources Inc. and changed its name to Cleveland-Cliffs Inc. in August 2017. The company was founded in 1847 and is headquartered in Cleveland, Ohio.
ROIC (TTM)
-5.0%
ROE (TTM)
-20.9%
FCF Yield
-17.05%
Based on trailing twelve-month data, CLF shows a free cash flow per share of N/A and a ROIC of -5.0%, key inputs for stock valuation using the DCF method. The P/FCF ratio of N/A and FCF yield of -17.05% are important context metrics when evaluating CLF's stock valuation relative to peers.
The intrinsic value of CLF depends on assumptions about future growth rate, discount rate (WACC), and terminal value. A DCF model discounts projected free cash flows back to present value — small changes in WACC can shift the estimate by 20% or more, which is why sensitivity analysis is essential.
Whether CLF is undervalued depends on comparing the DCF-derived intrinsic value to the current market price of $10.25. A positive margin of safety (intrinsic value above market price) suggests potential undervaluation, but the degree of confidence depends on the reliability of your growth and discount rate assumptions.
To perform a DCF valuation on Cleveland-Cliffs Inc.: (1) Start with the trailing free cash flow per share as the base, (2) project future FCF growth over 5-10 years based on Steel industry trends and company fundamentals, (3) apply a discount rate (WACC) reflecting CLF's risk profile, and (4) add a terminal value for cash flows beyond the projection period.
DCF (Discounted Cash Flow) estimates what a company is worth today based on its future cash generation. For Cleveland-Cliffs Inc., this means projecting how much free cash flow the Steel will produce over the next 5-10 years, then discounting those amounts to today's dollars. CLF's ROIC of -5.0% suggests the company may face challenges generating returns above its cost of capital.
WACC (Weighted Average Cost of Capital) is the discount rate in a DCF model — it reflects the minimum return investors require. For CLF, the capital structure and equity risk premium determine WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%.
