Arch Resources Inc
NYSE:ARCH

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Arch Resources Inc
NYSE:ARCH
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Price: 134.83 USD 0.7%
Market Cap: $2.4B

EV/EBIT

10.5
Current
30%
More Expensive
vs 3-y average of 8.1

Enterprise Value to EBIT (EV/EBIT) ratio compares a company`s total enterprise value to its earnings before interest and taxes. It shows how much investors are paying for each dollar of the company`s earnings, including both equity and debt.

EV/EBIT
10.5
=
Enterprise Value
$2.2B
/
EBIT
$207.8m

Enterprise Value to EBIT (EV/EBIT) ratio compares a company`s total enterprise value to its earnings before interest and taxes. It shows how much investors are paying for each dollar of the company`s earnings, including both equity and debt.

EV/EBIT
10.5
=
Enterprise Value
$2.2B
/
EBIT
$207.8m

Valuation Scenarios

Arch Resources Inc is trading above its 3-year average

If EV/EBIT returns to its 3-Year Average (8.1), the stock would be worth $103.41 (23% downside from current price).

Statistics
Positive Scenarios
2/4
Maximum Downside
-56%
Maximum Upside
+87%
Average Upside
6%
Scenario EV/EBIT Value Implied Price Upside/Downside
Current Multiple 10.5 $134.83
0%
3-Year Average 8.1 $103.41
-23%
5-Year Average 4.6 $59.25
-56%
Industry Average 12.1 $154.72
+15%
Country Average 19.6 $251.61
+87%

Forward EV/EBIT
Today’s price vs future ebit

Today's Enterprise Value EBIT Forward EV/EBIT
$2.2B
/
Oct 2024
$207.8m
=
10.5
Current
$2.2B
/
Dec 2024
$64.8m
=
33.7
Forward
$2.2B
/
Dec 2025
$321.3m
=
6.8
Forward
$2.2B
/
Dec 2026
$240.1m
=
9.1
Forward

Forward EV/EBIT shows whether today’s EV/EBIT still looks high or low once future ebit are taken into account.

Peer Comparison

All Multiples
EV/EBIT
P/E
All Countries
Close

Market Distribution

Lower than 82% of companies in the United States of America
Percentile
18th
Based on 8 638 companies
18th percentile
10.5
Low
0 — 13.6
Typical Range
13.6 — 27.8
High
27.8 —
Distribution Statistics
the United States of America
Min 0
30th Percentile 13.6
Median 19.6
70th Percentile 27.8
Max 1 826 183.2

Arch Resources Inc
Glance View

Market Cap
2.4B USD
Industry
Energy

Arch Resources Inc., a stalwart of the American coal industry, traces its origins back to a time when coal was king and the backbone of industrial energy. The company, originally known as Arch Coal, has evolved over the years, responding to the shifting dynamics of energy needs. With its headquarters in St. Louis, Missouri, Arch Resources finds itself at the intersection of tradition and innovation. It primarily focuses on mining metallurgical coal, a critical component in steel production, rather than the thermal coal used for power generation. This strategic shift underscores the company's focus on providing high-quality metallurgical coal used in the production of steel, an indispensable material for global infrastructure and automotive industries. Arch Resources operates several large-scale mines across the United States, with their operations centered in the prolific coal-rich regions of Wyoming and West Virginia. Embedded within its business model is a dual focus on operational efficiency and responsible mining practices. By investing in advanced technology and deploying a skilled workforce, Arch Resources maximizes extraction while mitigating environmental impact, a critical balance in today's regulatory and environmentally conscious landscape. The company generates revenue by selling coal to domestic and international steel producers, supplying a global market where the demand pivot for quality and sustainability continues to rise. This strategic alignment with metallurgical coal places Arch in a favorable position to capture value in fluctuating markets driven by global steel demand. As Arch Resources moves forward, it navigates the complexities of a transitioning energy landscape, leveraging its expertise and market position to remain a key player in the international mining arena.

ARCH Intrinsic Value
113.98 USD
Overvaluation 15%
Intrinsic Value
Price $134.83
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