Alkane Resources Limited

ASX:ALK Stock Report

Market Cap: AU$316.8m

Alkane Resources Valuation

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

Below Fair Value: ALK (A$0.53) is trading below our estimate of fair value (A$3.19)

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?

Other financial metrics that can be useful for relative valuation.

ALK key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.5x
Enterprise Value/EBITDA3.7x
PEG Ratio0.4x

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 Average17.6x
X64 Ten Sixty Four
30.6xn/aAU$129.9m
BCN Beacon Minerals
7.9xn/aAU$97.7m
WGX Westgold Resources
20.7x65.5%AU$1.3b
WAF West African Resources
11.2x28.1%AU$1.6b
ALK Alkane Resources
10.5x28.0%AU$316.8m

Price-To-Earnings vs Peers: ALK is good value based on its Price-To-Earnings Ratio (10.5x) compared to the peer average (13.3x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a16.6%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a16.6%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: ALK is good value based on its Price-To-Earnings Ratio (10.5x) compared to the Australian Metals and Mining industry average (14x).


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 Ratio10.5x
Fair PE Ratio17.4x

Price-To-Earnings vs Fair Ratio: ALK is good value based on its Price-To-Earnings Ratio (10.5x) compared to the estimated Fair Price-To-Earnings Ratio (17.4x).


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$0.53
AU$0.77
+46.0%
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$0.75n/a3
Nov ’24AU$0.59
AU$0.88
+48.3%
14.3%AU$1.00AU$0.75n/a2
Oct ’24AU$0.61
AU$1.03
+68.0%
2.4%AU$1.05AU$1.00n/a2
Sep ’24AU$0.66
AU$1.03
+56.5%
2.4%AU$1.05AU$1.00n/a2
Aug ’24AU$0.71
AU$1.03
+44.4%
2.4%AU$1.05AU$1.00n/a2
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
Nov ’23AU$0.64
AU$1.05
+64.1%
4.8%AU$1.10AU$1.00AU$0.592
Oct ’23AU$0.69
AU$1.25
+82.5%
4.0%AU$1.30AU$1.20AU$0.612
Sep ’23AU$0.70
AU$1.40
+100.0%
7.1%AU$1.50AU$1.30AU$0.662
Aug ’23AU$0.80
AU$1.40
+76.1%
7.1%AU$1.50AU$1.30AU$0.712
Jul ’23AU$0.65
AU$1.40
+117.1%
7.1%AU$1.50AU$1.30AU$0.702

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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