Leo Lithium Limited

ASX:LLL Stock Report

Market Cap: AU$605.1m

Leo Lithium Valuation

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

Valuation Score

2/6

Valuation Score 2/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Book vs Peers

  • Price-To-Book vs Industry

  • Price-To-Book vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

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

Below Fair Value: LLL (A$0.51) is trading below our estimate of fair value (A$1.54)

Significantly Below Fair Value: LLL is trading below fair value by more than 20%.

Key Valuation Metric

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

Key metric: As LLL barely has revenue we use its Price-To-Book Ratio for relative valuation analysis.

The above table shows the Price to Book ratio for LLL. This is calculated by dividing LLL's market cap by their current book value.
What is LLL's PB Ratio?
PB Ratio3.3x
BookAU$183.68m
Market CapAU$605.08m

Price to Book Ratio vs Peers

How does LLL's PB Ratio compare to its peers?

The above table shows the PB ratio for LLL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PBEstimated GrowthMarket Cap
Peer Average4.2x
LRS Latin Resources
5.3x-32.1%AU$546.3m
BRE Brazilian Rare Earths
6.6x44.5%AU$641.0m
CHN Chalice Mining
3.3x8.5%AU$540.7m
DVP Develop Global
1.5x95.4%AU$527.9m
LLL Leo Lithium
3.3x54.8%AU$605.1m

Price-To-Book vs Peers: LLL is expensive based on its Price-To-Book Ratio (3.3x) compared to the peer average (3.1x).

Price to Book Ratio vs Industry

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

16 CompaniesPrice / BookEstimated GrowthMarket Cap
HAS Hastings Technology Metals
0.2x12.6%US$29.98m
JRV Jervois Global
0.1xn/aUS$21.09m
ADN Andromeda Metals
0.1x25.5%US$14.33m
CTO Citigold
0.1xn/aUS$7.80m
LLL 3.3xIndustry Avg. 1.1xNo. of Companies97PB00.81.62.43.24+
16 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Book vs Industry: LLL is expensive based on its Price-To-Book Ratio (3.3x) compared to the Australian Metals and Mining industry average (1.1x).

Price to Book Ratio vs Fair Ratio

What is LLL's PB Ratio compared to its Fair PB Ratio? This is the expected PB Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

LLL PB Ratio vs Fair Ratio.
Fair Ratio
Current PB Ratio3.3x
Fair PB Ration/a

Price-To-Book vs Fair Ratio: Insufficient data to calculate LLL's Price-To-Book Fair Ratio for valuation analysis.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

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