Cleveland-Cliffs Inc (CLF) is undervalued and Gerdau SA ADR (GGB) is slightly undervalued.
Against our estimates of intrinsic value, CLF trades at the wider discount: a margin of safety of +73%, against +19% for GGB.
Values as of the 22 Sept 2026 close.
A 1.8x revenue multiple, discounted for its losses, values the shares at $47.21; the price of $12.53 is 73% below that value.
Leak Score 56/100 on 2 of 12 signals
Discounting its cash flows at 9.6% (average of 3 methods) values the shares at $6.18; the price of $5.02 is 19% below that value, and 74% of that value comes from beyond year five.
Leak Score 49/100 on 3 of 12 signals
| Metric | CLF | GGB |
|---|---|---|
| Verdict | Undervalued | Slightly undervalued |
| Price | $12.53 | $5.02 |
| Intrinsic value | $47.21 | $6.18 |
| Margin of safety | +73% | +19% |
| Leak Score | 56/100 (2/12) | 49/100 (3/12) |
| Market cap | $7.1B | $6.2B |
| Revenue growth, 5 years | 28.9% | 8.0% |
| Operating margin | -3.9% | 7.4% |
| Net margin | -4.6% | 3.3% |
| Return on equity | -15.2% | 4.3% |
| Debt to equity | 1.37 | 0.28 |
| P/E | — | 22.9x |
| Forward P/E | 16.4x | 8.7x |
| P/B | 1.3x | 0.9x |
| Dividend yield | — | 4.1% |