We’ve recently updated our valuation analysis.

Iluka Resources Valuation

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

Valuation Score

2/6

Valuation Score 2/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

ILU 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/Revenue2.5x
Enterprise Value/EBITDA4.9x
PEG Ratio-0.5x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for ILU vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average22x
NIC Nickel Industries
14.1x26.2%AU$3.3b
LYC Lynas Rare Earths
15.2x16.5%AU$8.2b
IGO IGO
36.2x1.7%AU$12.0b
IMD Imdex
22.5x17.4%AU$1.0b
ILU Iluka Resources
9.6x-20.3%AU$4.7b

Price-To-Earnings vs Peers: ILU is good value based on its Price-To-Earnings Ratio (9.6x) compared to the peer average (22x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a-4.1%
n/an/an/a

Price-To-Earnings vs Industry: ILU is good value based on its Price-To-Earnings Ratio (9.6x) compared to the Australian Metals and Mining industry average (11.9x)


Price to Earnings Ratio vs Fair Ratio

What is ILU'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.

ILU PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio9.6x
Fair PE Ratio8.9x

Price-To-Earnings vs Fair Ratio: ILU is expensive based on its Price-To-Earnings Ratio (9.6x) compared to the estimated Fair Price-To-Earnings Ratio (8.9x).


Share Price vs Fair Value

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

Below Fair Value: ILU (A$11.14) is trading above our estimate of fair value (A$4.14)

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


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 ILU forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentAU$11.14
AU$11.02
-1.1%
10.5%AU$12.70AU$9.12n/a10
Jan ’24AU$9.53
AU$10.98
+15.2%
10.2%AU$12.50AU$9.12n/a10
Dec ’23AU$10.52
AU$10.93
+3.9%
10.3%AU$12.60AU$9.12n/a10
Nov ’23AU$8.78
AU$10.85
+23.6%
10.6%AU$12.60AU$9.12n/a10
Oct ’23AU$9.06
AU$11.41
+26.0%
12.5%AU$13.35AU$9.12n/a9
Sep ’23AU$10.12
AU$12.10
+19.5%
14.0%AU$15.53AU$10.00n/a9
Aug ’23AU$9.68
AU$12.39
+28.0%
15.5%AU$15.53AU$10.40n/a9
Jul ’23AU$9.51
AU$12.65
+33.0%
13.8%AU$15.53AU$10.40n/a9
Jun ’23AU$10.70
AU$12.53
+17.1%
16.0%AU$15.53AU$9.75n/a9
May ’23AU$11.34
AU$12.40
+9.3%
16.5%AU$15.53AU$9.70n/a9
Apr ’23AU$11.52
AU$11.16
-3.1%
17.7%AU$15.53AU$9.00n/a9
Mar ’23AU$10.69
AU$11.10
+3.9%
17.7%AU$15.53AU$8.70n/a10
Feb ’23AU$10.56
AU$10.64
+0.7%
12.7%AU$12.80AU$8.85n/a9
Jan ’23AU$10.10
AU$10.07
-0.3%
11.6%AU$12.00AU$8.80AU$9.539
Dec ’22AU$8.80
AU$9.63
+9.5%
9.6%AU$11.00AU$8.30AU$10.529
Nov ’22AU$9.27
AU$9.63
+3.9%
9.6%AU$11.00AU$8.30AU$8.789
Oct ’22AU$8.77
AU$9.54
+8.8%
10.6%AU$11.50AU$8.30AU$9.069
Sep ’22AU$10.00
AU$9.26
-7.4%
10.4%AU$11.10AU$7.82AU$10.1210
Aug ’22AU$9.93
AU$8.72
-12.2%
13.3%AU$10.50AU$7.00AU$9.6810
Jul ’22AU$8.70
AU$7.46
-14.3%
13.8%AU$8.70AU$5.30AU$9.5110
Jun ’22AU$7.75
AU$7.28
-6.1%
12.9%AU$8.20AU$5.30AU$10.7010
May ’22AU$7.74
AU$7.31
-5.6%
11.7%AU$8.40AU$5.70AU$11.3410
Apr ’22AU$7.28
AU$7.00
-3.8%
12.0%AU$8.10AU$5.70AU$11.5210
Mar ’22AU$7.45
AU$6.82
-8.5%
11.4%AU$8.00AU$5.70AU$10.6911
Feb ’22AU$6.36
AU$6.35
-0.2%
8.9%AU$7.40AU$5.55AU$10.5610
Jan ’22AU$6.49
AU$6.04
-7.0%
10.0%AU$7.40AU$5.20AU$10.1010

Analyst Forecast: Target price is lower than the current share price.


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