Chrysos (ASX:C79): Evaluating Valuation After Strong FY25 Growth and PhotonAssay Expansion

Chrysos (ASX:C79) just posted impressive gains for FY25, with revenue up 46% and EBITDA rising 80%. These results are attributed to the growing footprint of its PhotonAssay technology and expansion into South America.

See our latest analysis for Chrysos.

Chrysos’ momentum keeps accelerating, with the 1-month share price return at 17.8% and an impressive 74.4% gain year-to-date. Over the past year, total shareholder return reached 62.6%, capping off a remarkable 163% three-year run. These gains reflect growing optimism about its PhotonAssay rollout, strategic partnerships, and the company’s successful expansion into new regions. This progress is also supported by a recently strengthened leadership team.

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With shares near record highs and analysts still forecasting further gains, the question for investors is clear: is there more upside for Chrysos, or has the market already priced in the company’s future growth?

Price-to-Sales Ratio of 14.8x: Is it justified?

Chrysos trades at a price-to-sales multiple of 14.8x, which is much higher than both the industry average and its direct peers, despite not being profitable yet. The last close was A$8.39, which suggests that much of the market’s optimism may already be reflected in the current price.

The price-to-sales ratio measures what investors are willing to pay for each dollar of revenue. For young, high-growth companies, a high price-to-sales ratio can reflect strong revenue expansion and future profit potential. However, it can also indicate overenthusiasm if fundamentals do not catch up quickly.

In comparison to Professional Services peers, where the average price-to-sales ratio is 2.4x, and the broader Australian industry at 1.6x, Chrysos is priced significantly above the norm. Even the estimated fair price-to-sales of 5.4x suggests a notable premium. This level of valuation can be difficult to justify unless the company is able to sustain rapid growth and move quickly toward profitability.

Explore the SWS fair ratio for Chrysos

Result: Price-to-Sales of 14.8x (OVERVALUED)

However, rising valuation and a price below analyst targets highlight risks if growth slows or if profitability improvements do not materialize as expected.

Find out about the key risks to this Chrysos narrative.

Build Your Own Chrysos Narrative

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A great starting point for your Chrysos research is our analysis highlighting 1 key reward and 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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