Iluka Resources Limited

ASX:ILU Stock Report

Market Cap: AU$2.3b

Iluka Resources Valuation

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

Valuation Score

4/6

Valuation Score 4/6

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

Below Fair Value: ILU (A$5.36) is trading above our estimate of fair value (A$3.23)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for ILU. This is calculated by dividing ILU's market cap by their current earnings.
What is ILU's PE Ratio?
PE Ratio8.4x
EarningsAU$272.50m
Market CapAU$2.35b

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.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average42.6x
IMD Imdex
39.8x19.6%AU$1.3b
LYC Lynas Rare Earths
76x42.7%AU$6.5b
PRN Perenti
12.1x23.3%AU$1.1b
BLY Boart Longyear Group
42.4xn/aAU$861.1m
ILU Iluka Resources
8.4x5.5%AU$2.3b

Price-To-Earnings vs Peers: ILU is good value based on its Price-To-Earnings Ratio (8.4x) compared to the peer average (42.6x).

Price to Earnings Ratio vs Industry

How does ILU'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$224.57m
GRR Grange Resources
2.6xn/aUS$180.60m
RHI Red Hill Minerals
1.8xn/aUS$178.04m
PTN Patronus Resources
2.3xn/aUS$66.01m
ILU 8.4xIndustry Avg. 11.9xNo. of Companies13PE01224364860+
9 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: ILU is good value based on its Price-To-Earnings Ratio (8.4x) 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 Ratio8.4x
Fair PE Ratio15.1x

Price-To-Earnings vs Fair Ratio: ILU is good value based on its Price-To-Earnings Ratio (8.4x) compared to the estimated Fair Price-To-Earnings Ratio (15.1x).

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$5.36
AU$7.09
+32.2%
12.6%AU$9.50AU$6.15n/a11
Nov ’25AU$6.00
AU$7.17
+19.4%
12.6%AU$9.50AU$6.15n/a10
Oct ’25AU$6.81
AU$7.40
+8.7%
13.5%AU$9.50AU$6.30n/a10
Sep ’25AU$6.16
AU$7.38
+19.7%
13.8%AU$9.50AU$6.30n/a10
Aug ’25AU$6.01
AU$7.58
+26.0%
12.5%AU$9.50AU$6.70n/a10
Jul ’25AU$6.67
AU$7.92
+18.7%
12.6%AU$9.90AU$6.70n/a10
Jun ’25AU$7.15
AU$7.98
+11.6%
12.2%AU$9.90AU$7.00n/a10
May ’25AU$7.54
AU$7.98
+5.8%
12.2%AU$9.90AU$7.00n/a10
Apr ’25AU$7.21
AU$7.88
+9.2%
11.2%AU$9.50AU$7.00n/a10
Mar ’25AU$7.12
AU$7.88
+10.6%
11.4%AU$9.50AU$6.70n/a10
Feb ’25AU$7.08
AU$7.79
+10.0%
13.6%AU$9.80AU$6.40n/a10
Jan ’25AU$6.60
AU$8.15
+23.5%
17.2%AU$10.80AU$6.50n/a10
Dec ’24AU$6.83
AU$8.67
+27.0%
16.8%AU$10.80AU$6.95n/a9
Nov ’24AU$7.24
AU$8.72
+20.4%
16.7%AU$10.80AU$6.95AU$6.009
Oct ’24AU$7.68
AU$9.20
+19.7%
12.2%AU$11.20AU$7.90AU$6.8110
Sep ’24AU$8.43
AU$9.42
+11.7%
11.8%AU$11.20AU$7.90AU$6.1610
Aug ’24AU$10.22
AU$11.28
+10.4%
8.4%AU$13.30AU$10.25AU$6.0110
Jul ’24AU$11.11
AU$11.49
+3.4%
7.9%AU$13.70AU$10.60AU$6.6710
Jun ’24AU$11.08
AU$11.36
+2.5%
7.7%AU$12.80AU$9.50AU$7.1510
May ’24AU$10.94
AU$11.33
+3.6%
7.5%AU$12.80AU$9.50AU$7.5410
Apr ’24AU$10.62
AU$11.13
+4.8%
8.3%AU$12.50AU$9.12AU$7.2111
Mar ’24AU$10.77
AU$11.13
+3.3%
8.8%AU$12.80AU$9.12AU$7.1210
Feb ’24AU$11.07
AU$11.13
+0.6%
9.7%AU$12.70AU$9.12AU$7.0810
Jan ’24AU$9.53
AU$10.98
+15.2%
10.2%AU$12.50AU$9.12AU$6.6010
Dec ’23AU$10.52
AU$10.93
+3.9%
10.3%AU$12.60AU$9.12AU$6.8310
Nov ’23AU$8.78
AU$10.85
+23.6%
10.6%AU$12.60AU$9.12AU$7.2410

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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