Alkane Resources Ltd

ASX:ALK Stock Report

Market Cap: AU$305.6m

Alkane Resources Valuation

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

Below Fair Value: ALK (A$0.51) is trading below our estimate of fair value (A$11.44)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for ALK. This is calculated by dividing ALK's market cap by their current earnings.
What is ALK's PE Ratio?
PE Ratio17.3x
EarningsAU$17.68m
Market CapAU$305.56m

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for ALK vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average33.3x
X64 Ten Sixty Four
30.6xn/aAU$129.9m
TBR Tribune Resources
51.8xn/aAU$224.6m
RSG Resolute Mining
40.8x42.3%AU$830.3m
BCN Beacon Minerals
10.1xn/aAU$93.0m
ALK Alkane Resources
17.3x36.3%AU$305.6m

Price-To-Earnings vs Peers: ALK is good value based on its Price-To-Earnings Ratio (17.3x) compared to the peer average (34.3x).

Price to Earnings Ratio vs Industry

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

11 CompaniesPrice / EarningsEstimated GrowthMarket Cap
KCN Kingsgate Consolidated
1.7x-13.3%US$205.69m
RHI Red Hill Minerals
1.7xn/aUS$165.12m
GRR Grange Resources
2.4xn/aUS$158.74m
PTN Patronus Resources
1.9xn/aUS$51.04m
ALK 17.3xIndustry Avg. 13.0xNo. of Companies11PE01224364860+
11 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: ALK is expensive based on its Price-To-Earnings Ratio (17.3x) compared to the Australian Metals and Mining industry average (13x).

Price to Earnings Ratio vs Fair Ratio

What is ALK'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.

ALK PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio17.3x
Fair PE Ratio23.1x

Price-To-Earnings vs Fair Ratio: ALK is good value based on its Price-To-Earnings Ratio (17.3x) compared to the estimated Fair Price-To-Earnings Ratio (23.1x).

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 ALK forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentAU$0.51
AU$0.85
+68.3%
34.6%AU$1.25AU$0.55n/a3
Dec ’25AU$0.49
AU$0.85
+71.7%
34.6%AU$1.25AU$0.55n/a3
Nov ’25AU$0.55
AU$0.85
+54.5%
34.6%AU$1.25AU$0.55n/a3
Oct ’25AU$0.43
AU$0.77
+78.3%
32.5%AU$1.10AU$0.50n/a3
Sep ’25AU$0.42
AU$0.75
+76.5%
34.0%AU$1.10AU$0.50n/a3
Aug ’25AU$0.44
AU$0.77
+74.2%
31.2%AU$1.10AU$0.55n/a3
Jul ’25AU$0.48
AU$0.75
+54.6%
33.1%AU$1.10AU$0.55n/a3
Jun ’25AU$0.56
AU$0.95
+69.6%
25.8%AU$1.25AU$0.65n/a3
May ’25AU$0.59
AU$0.95
+61.0%
25.8%AU$1.25AU$0.65n/a3
Apr ’25AU$0.63
AU$0.85
+36.0%
12.7%AU$1.00AU$0.75n/a3
Mar ’25AU$0.49
AU$0.85
+73.5%
12.7%AU$1.00AU$0.75n/a3
Feb ’25AU$0.57
AU$0.90
+56.5%
12.0%AU$1.00AU$0.75n/a3
Jan ’25AU$0.66
AU$0.93
+42.5%
14.1%AU$1.05AU$0.75n/a3
Dec ’24AU$0.66
AU$0.93
+41.4%
14.1%AU$1.05AU$0.75AU$0.493
Nov ’24AU$0.59
AU$0.88
+48.3%
14.3%AU$1.00AU$0.75AU$0.552
Oct ’24AU$0.61
AU$1.03
+68.0%
2.4%AU$1.05AU$1.00AU$0.432
Sep ’24AU$0.66
AU$1.03
+56.5%
2.4%AU$1.05AU$1.00AU$0.422
Aug ’24AU$0.71
AU$1.03
+44.4%
2.4%AU$1.05AU$1.00AU$0.442
Jul ’24AU$0.70
AU$1.05
+48.9%
4.8%AU$1.10AU$1.00AU$0.482
Jun ’24AU$0.74
AU$1.05
+41.9%
4.8%AU$1.10AU$1.00AU$0.562
May ’24AU$0.88
AU$1.05
+20.0%
4.8%AU$1.10AU$1.00AU$0.592
Mar ’24AU$0.71
AU$1.10
+54.9%
9.1%AU$1.20AU$1.00AU$0.492
Feb ’24AU$0.69
AU$1.05
+51.1%
4.8%AU$1.10AU$1.00AU$0.572
Jan ’24AU$0.54
AU$1.05
+96.3%
4.8%AU$1.10AU$1.00AU$0.662
Dec ’23AU$0.66
AU$1.05
+59.1%
4.8%AU$1.10AU$1.00AU$0.662

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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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/26 18:12
End of Day Share Price 2024/12/24 00:00
Earnings2024/06/30
Annual Earnings2024/06/30

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Alkane Resources Ltd is covered by 12 analysts. 5 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Michael HarrowellAPP Securities Pty Ltd.
Bradley WatsonBell Potter
Lord AshbourneEdison Investment Research