Whitehaven Coal Valuation

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

Valuation Score

4/6

Valuation Score 4/6

  • 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 WHC when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: WHC (A$6.55) is trading below our estimate of fair value (A$18.93)

Significantly Below Fair Value: WHC is trading below fair value by more than 20%.


Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for WHC. This is calculated by dividing WHC's market cap by their current earnings.
What is WHC's PE Ratio?
PE Ratio15.4x
EarningsAU$355.00m
Market CapAU$5.48b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for WHC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average16.5x
NHC New Hope
8.9x-0.7%AU$4.2b
YAL Yancoal Australia
6.5x0.6%AU$8.3b
BOE Boss Energy
23.4x32.1%AU$1.0b
PDN Paladin Energy
27.2x30.1%AU$2.3b
WHC Whitehaven Coal
15.4x17.8%AU$5.5b

Price-To-Earnings vs Peers: WHC is good value based on its Price-To-Earnings Ratio (15.4x) compared to the peer average (16.5x).


Price to Earnings Ratio vs Industry

How does WHC's PE Ratio compare vs other companies in the AU Oil and Gas Industry?

3 CompaniesPrice / EarningsEstimated GrowthMarket Cap
FAR FAR
0.7xn/aUS$29.17m
IKW Ikwezi Mining
1.7xn/aUS$12.55m
XST Xstate Resources
0.7xn/aUS$1.89m
No more companies available in this PE range
WHC 15.4xIndustry Avg. 12.2xNo. of Companies5PE01020304050+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: WHC is expensive based on its Price-To-Earnings Ratio (15.4x) compared to the Australian Oil and Gas industry average (12.2x).


Price to Earnings Ratio vs Fair Ratio

What is WHC'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.

WHC PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio15.4x
Fair PE Ratio13.3x

Price-To-Earnings vs Fair Ratio: WHC is expensive based on its Price-To-Earnings Ratio (15.4x) compared to the estimated Fair Price-To-Earnings Ratio (13.3x).


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 WHC forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentAU$6.55
AU$8.86
+35.2%
6.2%AU$9.65AU$7.90n/a15
Dec ’25AU$6.58
AU$8.77
+33.3%
7.0%AU$9.65AU$7.75n/a15
Nov ’25AU$6.95
AU$8.77
+26.2%
7.0%AU$9.65AU$7.75n/a15
Oct ’25AU$7.27
AU$8.69
+19.5%
10.3%AU$10.00AU$6.80n/a15
Sep ’25AU$6.69
AU$8.88
+32.8%
11.1%AU$10.35AU$6.80n/a14
Aug ’25AU$7.79
AU$9.39
+20.6%
9.9%AU$10.90AU$7.80n/a14
Jul ’25AU$8.13
AU$9.11
+12.1%
11.5%AU$11.40AU$7.40n/a14
Jun ’25AU$8.06
AU$8.91
+10.6%
10.7%AU$11.40AU$7.40n/a14
May ’25AU$7.70
AU$8.87
+15.1%
11.0%AU$11.40AU$7.40n/a13
Apr ’25AU$7.10
AU$8.19
+15.3%
17.0%AU$11.40AU$6.00n/a12
Mar ’25AU$7.02
AU$8.20
+16.8%
16.9%AU$11.40AU$6.00n/a12
Feb ’25AU$8.31
AU$8.43
+1.4%
16.6%AU$11.40AU$6.20n/a12
Jan ’25AU$7.44
AU$8.32
+11.8%
19.0%AU$12.00AU$6.30n/a12
Dec ’24AU$7.26
AU$8.24
+13.5%
18.8%AU$12.00AU$6.30AU$6.5812
Nov ’24AU$7.28
AU$8.08
+10.9%
13.4%AU$10.00AU$6.30AU$6.9512
Oct ’24AU$7.11
AU$7.14
+0.4%
16.0%AU$9.80AU$5.20AU$7.2713
Sep ’24AU$6.33
AU$7.29
+15.1%
13.6%AU$9.50AU$6.00AU$6.6913
Aug ’24AU$6.94
AU$7.94
+14.4%
11.9%AU$9.60AU$6.00AU$7.7913
Jul ’24AU$6.71
AU$8.10
+20.7%
10.8%AU$9.80AU$6.75AU$8.1314
Jun ’24AU$5.81
AU$8.44
+45.3%
10.1%AU$9.80AU$7.00AU$8.0613
May ’24AU$7.39
AU$8.64
+16.9%
10.4%AU$10.00AU$7.00AU$7.7013
Apr ’24AU$6.73
AU$9.72
+44.5%
10.2%AU$11.25AU$8.15AU$7.1014
Mar ’24AU$7.22
AU$10.04
+39.0%
10.8%AU$12.00AU$8.15AU$7.0214
Feb ’24AU$8.27
AU$11.64
+40.7%
11.6%AU$15.00AU$9.80AU$8.3115
Jan ’24AU$9.42
AU$11.41
+21.1%
13.2%AU$15.00AU$9.00AU$7.4415
Dec ’23AU$9.89
AU$11.16
+12.8%
15.4%AU$15.00AU$8.00AU$7.2615

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


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