Gerdau SA ADR (GGB) is slightly undervalued and ArcelorMittal SA (MT) is overvalued.
Against our estimates of intrinsic value, GGB trades at the wider discount: a margin of safety of +19%, against -262% for MT.
Values as of the 22 Sept 2026 close.
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
Discounting its cash flows at 10.3% (average of 3 methods) values the shares at $20.40; the price of $73.78 is 262% above that value, and 71% of that value comes from beyond year five.
Leak Score 14/100 on 3 of 12 signals
| Metric | GGB | MT |
|---|---|---|
| Verdict | Slightly undervalued | Overvalued |
| Price | $5.02 | $73.78 |
| Intrinsic value | $6.18 | $20.40 |
| Margin of safety | +19% | -262% |
| Leak Score | 49/100 (3/12) | 14/100 (3/12) |
| Market cap | $6.2B | $55.6B |
| Revenue growth, 5 years | 8.0% | 2.8% |
| Operating margin | 7.4% | 4.3% |
| Net margin | 3.3% | 2.9% |
| Return on equity | 4.3% | 3.3% |
| Debt to equity | 0.28 | 0.26 |
| P/E | 22.9x | 31.1x |
| Forward P/E | 8.7x | 10.4x |
| P/B | 0.9x | 1.0x |
| Dividend yield | 4.1% | 0.8% |