IperionX (ASX:IPX) Valuation in Focus After Reporting Wider Annual Net Loss

IperionX (ASX:IPX) has released its earnings results for the year ended June 30, 2025, reporting a net loss of $35 million. This marks an increase from the $22 million loss reported the previous year.

See our latest analysis for IperionX.

IperionX's latest earnings update comes amid relatively modest share price movement. Recent days and weeks have seen only slight gains, but the longer-term picture is more promising. Over the past year, total shareholder return stands at 1.43%, and the company has generated a healthy 21.32% total shareholder return over five years. This suggests that while short-term momentum may be muted, patient investors have seen steady progress.

If this performance has you curious about what else is driving results in the market, it could be the perfect opportunity to broaden your horizons and discover fast growing stocks with high insider ownership

With shares hovering around analyst targets but still well below intrinsic estimates, investors may be left wondering whether IperionX is undervalued after its larger loss or if expectations for future growth are already factored in.

Price-to-Book of 19.8x: Is it justified?

IperionX is currently trading at a price-to-book (P/B) ratio of 19.8x, substantially higher than peers both within the Metals and Mining industry and its immediate competitors. With the last close at A$8.26, this valuation suggests the market assigns a large premium to the company relative to the value of its net assets.

The price-to-book ratio reflects the stock price relative to the company’s book value (net assets). It is a common metric for asset-heavy sectors like mining because it gives a sense of what investors are willing to pay for each dollar of assets on the balance sheet. Such a high multiple may signal belief in future growth potential, but it can also indicate the stock is overvalued compared to its industry fundamentals.

Compared with the Australian Metals and Mining industry average of just 2.1x, IperionX’s current P/B ratio stands out as expensive. This level of premium is rarely seen and raises questions about whether the pricing is justified by the company's future earnings power or simply investor optimism. For context, the sector could see the market move toward more typical multiples if growth does not materialise as expected.

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

Result: Price-to-Book Ratio of 19.8x (OVERVALUED)

However, continued losses and a lack of revenue growth could challenge IperionX's premium valuation, particularly if investor optimism declines.

Find out about the key risks to this IperionX narrative.

Another View: Discounted Cash Flow Analysis

Looking through the lens of our DCF model, the outcome is much different. The SWS DCF model estimates IperionX’s fair value at A$33.75 per share, about 75% higher than today’s price. This presents a stark contrast to traditional asset-based measures. Could the market be underestimating IperionX’s long-term potential?

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 IperionX 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 IperionX Narrative

If you’re inclined to reach your own conclusions or want a hands-on look at the underlying facts, the tools are available to craft your perspective in just a few minutes. Do it your way

A great starting point for your IperionX research is our analysis highlighting 2 key rewards and 3 important warning signs that could impact your investment decision.

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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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