Burgundy Diamond Mines Limited

ASX:BDM Stock Report

Market Cap: AU$142.1m

Burgundy Diamond Mines Valuation

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

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of BDM when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: BDM (A$0.1) is trading above our estimate of fair value (A$0.09)

Significantly Below Fair Value: BDM is trading above our estimate of fair value.

Key Valuation Metric

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

Key metric: As BDM is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for BDM. This is calculated by dividing BDM's market cap by their current revenue.
What is BDM's PS Ratio?
PS Ratio0.2x
SalesUS$514.97m
Market CapUS$91.85m

Price to Sales Ratio vs Peers

How does BDM's PS Ratio compare to its peers?

The above table shows the PS ratio for BDM vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average16.7x
HGO Hillgrove Resources
2.9x22.4%AU$115.3m
STA Strandline Resources
2.3x18.6%AU$138.9m
QPM QPM Energy
1x19.2%AU$105.9m
MRL Mayur Resources
60.6xn/aAU$115.2m
BDM Burgundy Diamond Mines
0.2x-14.3%AU$142.1m

Price-To-Sales vs Peers: BDM is good value based on its Price-To-Sales Ratio (0.2x) compared to the peer average (16.7x).

Price to Sales Ratio vs Industry

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

124 CompaniesPrice / SalesEstimated GrowthMarket Cap
Industry Avg.61.1x3.1%
BDM Burgundy Diamond Mines
 0.2x-14.3%US$91.85m
BHP BHP Group
2.3x-3.2%US$130.65b
FMG Fortescue
2x-5.6%US$36.37b
BDM 0.2xIndustry Avg. 61.1xNo. of Companies124PS020406080100+
124 CompaniesEstimated GrowthMarket Cap
Industry Avg.61.1x10.7%
BDM Burgundy Diamond Mines
 0.2x19.2%US$91.85m
No more companies

Price-To-Sales vs Industry: BDM is good value based on its Price-To-Sales Ratio (0.2x) compared to the Australian Metals and Mining industry average (61.1x).

Price to Sales Ratio vs Fair Ratio

What is BDM's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

BDM PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.2x
Fair PS Ratio0.3x

Price-To-Sales vs Fair Ratio: BDM is good value based on its Price-To-Sales Ratio (0.2x) compared to the estimated Fair Price-To-Sales Ratio (0.3x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

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