- Despite more than doubling its market cap YTD, Mechel's projected P/E ratio is still bellow 2 and nearing 1, given a number of positive wider trends.
- Mechel's steel segment is set to benefit from EU competition losing out to Russian rivals, mostly because of environmental initiatives.
- Its coal sector is set to benefit as well, given improving demand prospects in Asia.
- The domestic Russian market is also set to benefit from sustained rise in commodity prices. A booming Russian economy should translate into higher steel demand.
For further details see:
Mechel Is Deeply Undervalued