Lunnon Metals Valuation

Is LM8 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-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 LM8 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: LM8 (A$0.24) is trading below our estimate of fair value (A$1.69)

Significantly Below Fair Value: LM8 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for LM8?

Key metric: As LM8 barely has revenue we use its Price-To-Book Ratio for relative valuation analysis.

The above table shows the Price to Book ratio for LM8. This is calculated by dividing LM8's market cap by their current book value.
What is LM8's PB Ratio?
PB Ratio	1.1x
Book	AU$46.36m
Market Cap	AU$51.81m

LM8 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/Revenue	19336.1x
Enterprise Value/EBITDA	-2.4x
PEG Ratio	n/a

Price to Book Ratio vs Peers

How does LM8's PB Ratio compare to its peers?

The above table shows the PB ratio for LM8 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PB	Estimated Growth	Market Cap
Peer Average	1.7x
GL1 Global Lithium Resources	0.3x	-11.3%	AU$48.2m
PRL Province Resources	2.4x	n/a	AU$48.4m
AGR Aguia Resources	1.5x	n/a	AU$55.6m
MMA Maronan Metals	2.7x	n/a	AU$41.3m
LM8 Lunnon Metals	1.1x	56.0%	AU$51.8m

Price-To-Book vs Peers: LM8 is good value based on its Price-To-Book Ratio (1.1x) compared to the peer average (1.5x).

Price to Book Ratio vs Industry

How does LM8's PB Ratio compare vs other companies in the AU Metals and Mining Industry?

17 Companies	Price / Book	Estimated Growth	Market Cap
HAS Hastings Technology Metals	0.2x	12.6%	US$32.33m
JRV Jervois Global	0.1x	n/a	US$19.33m
ADN Andromeda Metals	0.2x	25.5%	US$15.44m
CTO Citigold	0.1x	n/a	US$7.80m

17 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Book vs Industry: LM8 is good value based on its Price-To-Book Ratio (1.1x) compared to the Australian Metals and Mining industry average (1.1x).

Price to Book Ratio vs Fair Ratio

What is LM8'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.

LM8 PB Ratio vs Fair Ratio.
Fair Ratio
Current PB Ratio	1.1x
Fair PB Ratio	n/a

Price-To-Book vs Fair Ratio: Insufficient data to calculate LM8'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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