Austal Limited

ASX:ASB Stock Report

Market Cap: AU$1.1b

Austal Valuation

Is ASB undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of ASB when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: ASB (A$3.09) is trading above our estimate of fair value (A$0.57)

Significantly Below Fair Value: ASB is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for ASB?

Key metric: As ASB is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for ASB. This is calculated by dividing ASB's market cap by their current earnings.
What is ASB's PE Ratio?
PE Ratio75.2x
EarningsAU$14.88m
Market CapAU$1.14b

Price to Earnings Ratio vs Peers

How does ASB's PE Ratio compare to its peers?

The above table shows the PE ratio for ASB vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average36.4x
DRO DroneShield
84.7x52.6%AU$658.4m
MND Monadelphous Group
19.8x8.2%AU$1.2b
GWA GWA Group
16.1x9.9%AU$633.8m
JLG Johns Lyng Group
25x11.9%AU$1.2b
ASB Austal
75.2x41.3%AU$1.1b

Price-To-Earnings vs Peers: ASB is expensive based on its Price-To-Earnings Ratio (75.2x) compared to the peer average (36.4x).

Price to Earnings Ratio vs Industry

How does ASB's PE Ratio compare vs other companies in the Global Aerospace & Defense Industry?

5 CompaniesPrice / EarningsEstimated GrowthMarket Cap
ASB 75.2xIndustry Avg. 38.4xNo. of Companies21PE020406080100+
5 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: ASB is expensive based on its Price-To-Earnings Ratio (75.2x) compared to the Global Aerospace & Defense industry average (38.4x).

Price to Earnings Ratio vs Fair Ratio

What is ASB's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

ASB PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio75.2x
Fair PE Ratio39.8x

Price-To-Earnings vs Fair Ratio: ASB is expensive based on its Price-To-Earnings Ratio (75.2x) compared to the estimated Fair Price-To-Earnings Ratio (39.8x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst ASB forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentAU$3.09
AU$3.44
+11.3%
15.9%AU$4.14AU$2.50n/a5
Nov ’25AU$3.16
AU$3.30
+4.6%
16.1%AU$4.14AU$2.50n/a5
Oct ’25AU$2.88
AU$3.26
+13.0%
17.9%AU$4.14AU$2.50n/a4
Sep ’25AU$2.34
AU$3.12
+33.2%
19.5%AU$4.14AU$2.55n/a4
Aug ’25AU$2.60
AU$2.86
+9.9%
7.0%AU$3.10AU$2.55n/a4
Jul ’25AU$2.49
AU$2.86
+14.8%
7.0%AU$3.10AU$2.55n/a4
Jun ’25AU$2.39
AU$2.75
+14.9%
14.0%AU$3.10AU$2.10n/a4
May ’25AU$2.37
AU$2.75
+15.8%
14.0%AU$3.10AU$2.10n/a4
Apr ’25AU$2.20
AU$2.56
+16.5%
16.5%AU$3.10AU$2.10n/a4
Mar ’25AU$2.04
AU$2.56
+25.6%
16.5%AU$3.10AU$2.10n/a4
Feb ’25AU$2.00
AU$2.46
+23.1%
11.9%AU$2.75AU$2.10n/a4
Jan ’25AU$2.03
AU$2.46
+21.3%
11.9%AU$2.75AU$2.10n/a4
Dec ’24AU$1.85
AU$2.43
+31.4%
14.1%AU$2.75AU$1.95n/a4
Nov ’24AU$1.68
AU$2.43
+44.3%
14.1%AU$2.75AU$1.95AU$3.164
Oct ’24AU$1.88
AU$2.28
+21.2%
18.6%AU$2.75AU$1.69AU$2.885
Sep ’24AU$1.87
AU$2.31
+23.8%
19.9%AU$2.90AU$1.69AU$2.345
Aug ’24AU$2.21
AU$2.46
+11.2%
17.3%AU$2.90AU$1.69AU$2.605
Jul ’24AU$2.37
AU$2.50
+5.6%
21.6%AU$3.10AU$1.69AU$2.495
Jun ’24AU$2.12
AU$2.18
+2.6%
15.2%AU$2.60AU$1.69AU$2.394
May ’24AU$1.66
AU$2.04
+22.6%
16.9%AU$2.60AU$1.69AU$2.374
Apr ’24AU$1.73
AU$2.04
+18.0%
16.9%AU$2.60AU$1.69AU$2.204
Mar ’24AU$1.85
AU$2.14
+16.1%
13.1%AU$2.60AU$1.85AU$2.044
Feb ’24AU$1.65
AU$2.26
+37.3%
14.0%AU$2.70AU$1.75AU$2.005
Jan ’24AU$2.08
AU$2.70
+30.0%
20.6%AU$3.70AU$2.12AU$2.035
Dec ’23AU$2.35
AU$2.70
+15.1%
20.6%AU$3.70AU$2.12AU$1.855
Nov ’23AU$2.51
AU$2.70
+7.7%
20.6%AU$3.70AU$2.12AU$1.685

Analyst Forecast: Target price is less than 20% higher than the current share price.

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