Allkem Limited

ASX:AKE Stock Report

Market Cap: AU$6.3b

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This company may still be operating, however this listing is no longer active. Find out why through their latest events.

Allkem Valuation

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

Valuation Score

5/6

Valuation Score 5/6

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

Below Fair Value: AKE (A$9.83) is trading below our estimate of fair value (A$16.79)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for AKE. This is calculated by dividing AKE's market cap by their current earnings.
What is AKE's PE Ratio?
PE Ratio9.5x
EarningsUS$444.99m
Market CapUS$4.23b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for AKE vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average375.3x
PLS Pilbara Minerals
32.8x25.8%AU$8.4b
LYC Lynas Rare Earths
76x42.7%AU$6.4b
IGO IGO
1339.6x41.1%AU$3.8b
MIN Mineral Resources
52.8x39.6%AU$6.6b
AKE Allkem
9.5x5.0%AU$6.3b

Price-To-Earnings vs Peers: AKE is good value based on its Price-To-Earnings Ratio (9.5x) compared to the peer average (22.8x).

Price to Earnings Ratio vs Industry

How does AKE's PE Ratio compare vs other companies in the AU Metals and Mining Industry?

9 CompaniesPrice / EarningsEstimated GrowthMarket Cap
KCN Kingsgate Consolidated
1.7x-13.3%US$225.14m
GRR Grange Resources
2.6xn/aUS$181.06m
RHI Red Hill Minerals
1.8xn/aUS$179.75m
PTN Patronus Resources
2.4xn/aUS$68.31m
AKE 9.5xIndustry Avg. 11.9xNo. of Companies13PE01224364860+
9 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: AKE is good value based on its Price-To-Earnings Ratio (9.5x) compared to the Australian Metals and Mining industry average (11.9x).

Price to Earnings Ratio vs Fair Ratio

What is AKE'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.

AKE PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio9.5x
Fair PE Ratio16x

Price-To-Earnings vs Fair Ratio: AKE is good value based on its Price-To-Earnings Ratio (9.5x) compared to the estimated Fair Price-To-Earnings Ratio (16x).

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 AKE forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Currentn/a
AU$13.30
0%
22.8%AU$18.50AU$8.50n/a12
Nov ’25n/a
AU$13.30
0%
22.8%AU$18.50AU$8.50n/a12
Oct ’25n/a
AU$13.30
0%
22.8%AU$18.50AU$8.50n/a12
Sep ’25n/a
AU$13.30
0%
22.8%AU$18.50AU$8.50n/a12
Aug ’25n/a
AU$13.30
0%
22.8%AU$18.50AU$8.50n/a12
Jul ’25n/a
AU$13.30
0%
22.8%AU$18.50AU$8.50n/a12
Jun ’25n/a
AU$13.30
0%
22.8%AU$18.50AU$8.50n/a12
May ’25n/a
AU$13.30
0%
22.8%AU$18.50AU$8.50n/a12
Apr ’25n/a
AU$13.30
0%
22.8%AU$18.50AU$8.50n/a12
Mar ’25n/a
AU$13.30
0%
22.8%AU$18.50AU$8.50n/a12
Feb ’25n/a
AU$13.30
0%
22.8%AU$18.50AU$8.50n/a12
Jan ’25n/a
AU$13.30
0%
22.8%AU$18.50AU$8.50n/a12
Dec ’24AU$8.48
AU$14.28
+68.4%
22.4%AU$21.37AU$8.50n/a18
Nov ’24AU$9.17
AU$15.03
+64.0%
17.5%AU$21.37AU$10.90n/a18
Oct ’24AU$11.76
AU$16.77
+42.6%
15.0%AU$21.37AU$10.80n/a18
Sep ’24AU$13.99
AU$17.54
+25.4%
11.8%AU$21.37AU$14.20n/a18
Aug ’24AU$14.90
AU$17.72
+18.9%
11.8%AU$21.50AU$14.50n/a18
Jul ’24AU$16.02
AU$17.02
+6.2%
12.8%AU$21.37AU$14.00n/a18
Jun ’24AU$14.31
AU$16.58
+15.8%
15.1%AU$21.37AU$12.90n/a19
May ’24AU$12.00
AU$15.16
+26.4%
16.8%AU$20.00AU$12.50n/a20
Apr ’24AU$11.88
AU$15.91
+33.9%
15.6%AU$20.00AU$11.00n/a19
Mar ’24AU$11.87
AU$15.98
+34.6%
17.1%AU$20.00AU$11.00n/a19
Feb ’24AU$13.12
AU$16.36
+24.7%
17.4%AU$20.00AU$11.00n/a19
Jan ’24AU$11.24
AU$16.90
+50.3%
18.2%AU$22.00AU$10.80n/a19
Dec ’23AU$14.05
AU$17.34
+23.4%
16.8%AU$22.50AU$10.80AU$8.4818
Nov ’23AU$15.04
AU$16.70
+11.0%
17.3%AU$20.40AU$10.80AU$9.1715

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.

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