Arch Resources Inc
NYSE:ARCH
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EV/EBIT
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.
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.
Valuation Scenarios
If EV/EBIT returns to its 3-Year Average (8.1), the stock would be worth $103.41 (23% downside from current price).
| 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
|
= |
|
|
$2.2B
|
/ |
Dec 2024
$64.8m
|
= |
|
|
$2.2B
|
/ |
Dec 2025
$321.3m
|
= |
|
|
$2.2B
|
/ |
Dec 2026
$240.1m
|
= |
|
Forward EV/EBIT shows whether today’s EV/EBIT still looks high or low once future ebit are taken into account.
Peer Comparison
| Market Cap | EV/EBIT | P/E | ||||
|---|---|---|---|---|---|---|
| US |
|
Arch Resources Inc
NYSE:ARCH
|
2.4B USD | 10.5 | 13.6 | |
| ID |
|
Alamtri Resources Indonesia Tbk PT
F:A640
|
162.7B EUR | 351.5 | 413.3 | |
| CN |
|
China Shenhua Energy Co Ltd
SSE:601088
|
898.7B CNY | 13.3 | 17.3 | |
| ZA |
E
|
Exxaro Resources Ltd
JSE:EXX
|
72B ZAR | 8 | 9.5 | |
| CA |
C
|
Cameco Corp
NYSE:CCJ
|
53.8B USD | 112.6 | 119 | |
| CN |
|
Shaanxi Coal Industry Co Ltd
SSE:601225
|
237.7B CNY | 6.9 | 10.4 | |
| CN |
|
China Coal Energy Co Ltd
SSE:601898
|
214.7B CNY | 8.7 | 12 | |
| ID |
|
Dian Swastatika Sentosa Tbk PT
IDX:DSSA
|
537.5T IDR | 84.8 | 5.3 | |
| IN |
|
Coal India Ltd
NSE:COALINDIA
|
2.7T INR | 7.9 | 9.1 | |
| CN |
|
Yankuang Energy Group Co Ltd
SSE:600188
|
187.6B CNY | 14.7 | 22.4 | |
| ID |
|
Bayan Resources Tbk PT
IDX:BYAN
|
410T IDR | 23.7 | 31.9 |
Market Distribution
| Min | 0 |
| 30th Percentile | 13.6 |
| Median | 19.6 |
| 70th Percentile | 27.8 |
| Max | 1 826 183.2 |
Other Multiples
Arch Resources Inc
Glance View
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.