Champion Iron Limited

ASX:CIA Stock Report

Market Cap: AU$2.8b

Champion Iron Valuation

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

Below Fair Value: CIA (A$5.46) is trading below our estimate of fair value (A$5.82)

Significantly Below Fair Value: CIA is trading below fair value, but not by a significant amount.

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for CIA. This is calculated by dividing CIA's market cap by their current earnings.
What is CIA's PE Ratio?
PE Ratio10.2x
EarningsCA$253.42m
Market CapCA$2.58b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for CIA vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average14.6x
DRR Deterra Royalties
12.5x-6.9%AU$1.9b
SMR Stanmore Resources
6.8x-17.0%AU$2.8b
BSL BlueScope Steel
11.5x8.3%AU$9.2b
VSL Vulcan Steel
27.7x22.9%AU$1.0b
CIA Champion Iron
10.2x7.5%AU$2.8b

Price-To-Earnings vs Peers: CIA is good value based on its Price-To-Earnings Ratio (10.2x) compared to the peer average (14.6x).

Price to Earnings Ratio vs Industry

How does CIA'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$220.08m
GRR Grange Resources
2.6xn/aUS$180.35m
RHI Red Hill Minerals
1.8xn/aUS$177.38m
PTN Patronus Resources
2.3xn/aUS$64.85m
CIA 10.2xIndustry Avg. 11.9xNo. of Companies13PE01224364860+
9 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: CIA is good value based on its Price-To-Earnings Ratio (10.2x) compared to the Australian Metals and Mining industry average (11.9x).

Price to Earnings Ratio vs Fair Ratio

What is CIA'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.

CIA PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio10.2x
Fair PE Ratio16.5x

Price-To-Earnings vs Fair Ratio: CIA is good value based on its Price-To-Earnings Ratio (10.2x) compared to the estimated Fair Price-To-Earnings Ratio (16.5x).

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 CIA forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentAU$5.46
AU$7.47
+36.8%
10.2%AU$8.64AU$6.79n/a7
Nov ’25AU$6.14
AU$7.48
+21.9%
9.8%AU$8.64AU$6.79n/a7
Oct ’25AU$7.17
AU$7.52
+4.8%
9.6%AU$9.20AU$6.87n/a7
Sep ’25AU$6.27
AU$7.81
+24.5%
11.2%AU$9.72AU$7.19n/a6
Aug ’25AU$6.40
AU$8.09
+26.4%
10.4%AU$9.89AU$7.46n/a6
Jul ’25AU$6.51
AU$8.49
+30.4%
9.7%AU$9.83AU$7.47n/a6
Jun ’25AU$7.02
AU$8.48
+20.8%
10.8%AU$9.92AU$7.18n/a6
May ’25AU$6.89
AU$8.34
+21.1%
12.0%AU$9.89AU$7.20n/a6
Apr ’25AU$7.41
AU$8.83
+19.1%
12.1%AU$10.10AU$7.28n/a6
Mar ’25AU$7.93
AU$9.15
+15.4%
9.6%AU$10.16AU$7.32n/a6
Feb ’25AU$8.43
AU$9.18
+8.9%
9.6%AU$10.18AU$7.34n/a6
Jan ’25AU$8.39
AU$8.56
+2.0%
9.4%AU$9.38AU$6.99n/a6
Dec ’24AU$7.82
AU$8.15
+4.2%
8.2%AU$9.03AU$7.00n/a6
Nov ’24AU$7.41
AU$7.65
+3.2%
6.7%AU$8.68AU$7.18AU$6.146
Oct ’24AU$6.30
AU$7.53
+19.6%
11.7%AU$9.15AU$6.21AU$7.176
Sep ’24AU$6.18
AU$7.53
+21.8%
12.8%AU$9.14AU$6.21AU$6.275
Aug ’24AU$6.07
AU$7.39
+21.8%
12.4%AU$8.96AU$6.17AU$6.405
Jul ’24AU$6.08
AU$7.51
+23.5%
7.7%AU$8.49AU$6.95AU$6.515
Jun ’24AU$5.68
AU$7.69
+35.4%
8.7%AU$8.60AU$6.90AU$7.025
May ’24AU$6.44
AU$7.93
+23.2%
6.3%AU$8.40AU$7.03AU$6.895
Apr ’24AU$7.14
AU$8.31
+16.4%
5.9%AU$8.83AU$7.51AU$7.415
Mar ’24AU$7.66
AU$8.34
+8.9%
3.9%AU$8.65AU$7.72AU$7.935
Feb ’24AU$7.38
AU$8.11
+9.9%
3.8%AU$8.41AU$7.51AU$8.435
Jan ’24AU$7.31
AU$7.06
-3.4%
6.9%AU$7.80AU$6.49AU$8.395
Dec ’23AU$6.73
AU$6.52
-3.1%
10.6%AU$7.50AU$5.35AU$7.825
Nov ’23AU$4.82
AU$6.86
+42.3%
11.1%AU$7.70AU$5.53AU$7.415

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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