` Comparison: 500470 vs FMG - Alpha Spread

500470
vs
FMG

Over the past 12 months, TATASTEEL has outperformed FMG, delivering a return of +24% compared to the FMG's +20% growth.

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500470
FMG
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Valuation Comparison

TATASTEEL Intrinsic Value
242.23 INR
Undervaluation 21%
Intrinsic Value
Price
FMG Intrinsic Value
16.81 AUD
Overvaluation 16%
Intrinsic Value
Price
Company Last Price Intrinsic Value DCF Value Relative Value Wall St Target
Tata Steel Ltd
BSE:500470
191.15 INR
Fortescue Metals Group Ltd
ASX:FMG
19.97 AUD
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Valuation Scenario:
Bear Case
Base Case
Bull Case

Growth Comparison

Growth Over Time
500470, FMG

500470
FMG
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Revenue
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Company LTM Historical Growth Growth Streak % Positive Years Max Drawdown Volatility Forecasted Growth
3 Years 5 Years 10 Years 1 Year 3 Years
Tata Steel Ltd
Revenue
Fortescue Metals Group Ltd
Revenue

All metrics are calculated based on data from the last 10 years.

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Profitability Comparison

Free Cash Flow
500470, FMG

500470
FMG
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Free Cash Flow
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Company LTM Average Historical Growth FCF Margin Conversion
3 Years 5 Years 3 Years 5 Years 10 Years
Tata Steel Ltd
BSE:500470
Fortescue Metals Group Ltd
ASX:FMG
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What is Free Cash Flow?

Gross Margin

TATASTEEL
59.1%
FMG
41.9%

Operating Margin

TATASTEEL
8.7%
FMG
34.6%

Net Margin

TATASTEEL
4.1%
FMG
22.8%

FCF Margin

TATASTEEL
7.1%
FMG
23.7%

ROE

TATASTEEL
9.9%
FMG
18.7%

ROA

TATASTEEL
3.2%
FMG
12.3%

ROIC

TATASTEEL
5.5%
FMG
15.4%

ROCE

TATASTEEL
10.2%
FMG
20.2%

Solvency Comparison

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Balance Sheet Comparison
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Stocks Performance

Stocks Performance
500470, FMG

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Performance Gap
500470, FMG

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500470
FMG
Difference
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Performance By Year
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500470
FMG
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Compare 500470 to other stocks
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VALE3
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FVJ
Fortescue Ltd
F
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vs TATASTEEL
MT
ArcelorMittal SA
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vs TATASTEEL
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Intrinsic Value is all-important and is the only logical way to evaluate the relative attractiveness of investments and businesses.

Warren Buffett