Deterra Royalties Limited

ASX:DRR Stock Report

Market Cap: AU$1.9b

Deterra Royalties Valuation

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

Below Fair Value: DRR (A$3.64) is trading below our estimate of fair value (A$3.71)

Significantly Below Fair Value: DRR 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 DRR?

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

The above table shows the Price to Earnings ratio for DRR. This is calculated by dividing DRR's market cap by their current earnings.
What is DRR's PE Ratio?
PE Ratio12.4x
EarningsAU$154.89m
Market CapAU$1.92b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for DRR vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average13.7x
CIA Champion Iron
10.2x7.5%AU$2.8b
VSL Vulcan Steel
26.2x22.9%AU$979.2m
SMR Stanmore Resources
6.7x-16.9%AU$2.8b
BSL BlueScope Steel
11.5x8.3%AU$9.2b
DRR Deterra Royalties
12.4x-6.9%AU$1.9b

Price-To-Earnings vs Peers: DRR is good value based on its Price-To-Earnings Ratio (12.4x) compared to the peer average (13.7x).

Price to Earnings Ratio vs Industry

How does DRR'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$66.01m
DRR 12.4xIndustry Avg. 11.9xNo. of Companies13PE01224364860+
9 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: DRR is expensive based on its Price-To-Earnings Ratio (12.4x) compared to the Australian Metals and Mining industry average (11.9x).

Price to Earnings Ratio vs Fair Ratio

What is DRR'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.

DRR PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio12.4x
Fair PE Ratio10.8x

Price-To-Earnings vs Fair Ratio: DRR is expensive based on its Price-To-Earnings Ratio (12.4x) compared to the estimated Fair Price-To-Earnings Ratio (10.8x).

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 DRR forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentAU$3.64
AU$4.44
+21.9%
9.8%AU$5.30AU$3.80n/a11
Nov ’25AU$3.77
AU$4.44
+17.7%
9.8%AU$5.30AU$3.80n/a11
Oct ’25AU$4.08
AU$4.44
+8.8%
8.5%AU$5.00AU$3.80n/a11
Sep ’25AU$3.68
AU$4.41
+19.9%
8.8%AU$5.00AU$3.75n/a11
Aug ’25AU$3.99
AU$4.49
+12.6%
10.0%AU$5.30AU$3.70n/a11
Jul ’25AU$4.01
AU$4.53
+12.9%
10.3%AU$5.30AU$3.70n/a11
Jun ’25AU$4.63
AU$4.89
+5.5%
7.8%AU$5.60AU$4.20n/a12
May ’25AU$4.87
AU$4.89
+0.3%
7.8%AU$5.60AU$4.20n/a12
Apr ’25AU$4.93
AU$4.95
+0.4%
7.1%AU$5.60AU$4.39n/a12
Mar ’25AU$5.06
AU$4.96
-2.0%
6.5%AU$5.60AU$4.39n/a12
Feb ’25AU$5.35
AU$5.06
-5.4%
5.8%AU$5.65AU$4.40n/a11
Jan ’25AU$5.27
AU$5.00
-5.2%
6.6%AU$5.65AU$4.20n/a11
Dec ’24AU$4.99
AU$4.85
-2.8%
7.9%AU$5.50AU$4.02n/a12
Nov ’24AU$4.69
AU$4.79
+2.1%
7.8%AU$5.50AU$4.02AU$3.7712
Oct ’24AU$4.79
AU$4.64
-3.1%
10.3%AU$5.50AU$3.90AU$4.0812
Sep ’24AU$4.52
AU$4.54
+0.3%
8.2%AU$5.00AU$3.90AU$3.6812
Aug ’24AU$4.77
AU$4.58
-4.0%
7.9%AU$5.00AU$3.90AU$3.9912
Jul ’24AU$4.60
AU$4.60
-0.05%
8.5%AU$5.10AU$3.90AU$4.0112
Jun ’24AU$4.37
AU$4.69
+7.3%
8.4%AU$5.10AU$3.90AU$4.6312
May ’24AU$4.67
AU$4.80
+2.9%
7.2%AU$5.10AU$3.90AU$4.8711
Apr ’24AU$4.80
AU$4.75
-1.0%
8.0%AU$5.25AU$3.90AU$4.9311
Mar ’24AU$4.53
AU$4.80
+6.0%
9.5%AU$5.63AU$3.90AU$5.0612
Feb ’24AU$4.91
AU$4.80
-2.3%
9.7%AU$5.63AU$3.90AU$5.3513
Jan ’24AU$4.58
AU$4.79
+4.5%
11.2%AU$5.70AU$3.80AU$5.2713
Dec ’23AU$4.75
AU$4.69
-1.3%
11.5%AU$5.70AU$3.80AU$4.9913
Nov ’23AU$4.15
AU$4.71
+13.6%
11.5%AU$5.70AU$3.80AU$4.6913

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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