Greatland Resources (ASX:GGP): Valuation Perspective as Drilling Milestones Outpace 2026 Targets

Greatland Resources (ASX:GGP) just reported that its fiscal year 2026 drill program is running ahead of schedule, having already drilled over 53,000 metres across key sites. This marks a clear push in both resource growth and conversion efforts.

See our latest analysis for Greatland Resources.

While Greatland Resources continues to report operational milestones in its latest drilling campaigns, the stock’s recent 90-day share price return of 22.8% points to some renewed momentum. That said, the 1-week and 1-day returns have pulled back sharply, showing sentiment can swing quickly as the market digests each update. Long-term performance remains mixed, but periods of strong upward moves suggest investors are watching these developments closely.

If the recent uptick in activity has your attention, now’s an ideal opportunity to broaden your perspective and discover fast growing stocks with high insider ownership

With analyst price targets sitting well above current levels and drilling programs surpassing expectations, the key question is whether Greatland shares are trading at a discount, or if the market has already priced in these growth prospects.

Price-to-Earnings of 13.6x: Is it justified?

Greatland Resources is currently trading on a price-to-earnings (P/E) ratio of 13.6x. This figure is considerably lower than its immediate peers and the broader industry average. With a last close price of A$6.83, this multiple suggests potential undervaluation relative to similar companies in the metals and mining sector.

The price-to-earnings ratio indicates what investors are willing to pay for each dollar of company earnings. In resource-driven sectors like mining, a lower P/E can sometimes reflect concerns about future earnings growth or cyclicality. However, it may also represent an opportunity if recent profitability proves sustainable.

For Greatland Resources, this P/E multiple is notable because it is well below the Australian Metals and Mining industry average of 21.6x and the peer average of 24.3x. If the company maintains or grows its current level of profitability, the market may be underestimating its near-term earnings potential.

See what the numbers say about this price — find out in our valuation breakdown.

Result: Price-to-Earnings of 13.6x (UNDERVALUED)

However, slower annual net income growth or renewed share price volatility could quickly challenge the current view that Greatland Resources is undervalued.

Find out about the key risks to this Greatland Resources narrative.

Another View: Discounted Cash Flow Tells a Different Story

While the current valuation looks attractive based on earnings multiples, our DCF model offers a contrasting perspective. According to the SWS DCF model, Greatland Resources is actually trading above its estimated fair value, which suggests the shares may be overvalued by around 14% at present.

Look into how the SWS DCF model arrives at its fair value.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Greatland Resources for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Build Your Own Greatland Resources Narrative

If you’d like to dig into the numbers yourself or explore alternative scenarios, you can build your own view in just a few minutes. Do it your way

A good starting point is our analysis highlighting 3 key rewards investors are optimistic about regarding Greatland Resources.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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