Arcadium Lithium Valuation

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

LTM (A$4.08) is trading below our estimate of [[fair value]] (A$11.2)

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

Valuation Score

5/6

Valuation Score 5/6

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

Below Fair Value: LTM (A$4.08) is trading below our estimate of fair value (A$11.2)

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

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for LTM. This is calculated by dividing LTM's market cap by their current preferred multiple.
What is LTM's n/a Ratio?
n/a	0x
n/a	n/a
Market Cap	US$3.02b

LTM 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	4.6x
Enterprise Value/EBITDA	13.2x
PEG Ratio	0.5x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for LTM vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	15.5x
DGL DGL Group	9.8x	14.6%	AU$134.1m
ORI Orica	17.6x	6.6%	AU$9.0b
NIC Nickel Industries	27x	60.6%	AU$3.8b
PRU Perseus Mining	7.8x	-11.9%	AU$3.7b
LTM Arcadium Lithium	13.3x	24.5%	AU$3.0b

Price-To-Earnings vs Peers: LTM is good value based on its Price-To-Earnings Ratio (13.3x) compared to the peer average (15.5x).

Price to Earnings Ratio vs Industry

How does LTM's PE Ratio compare vs other companies in the Global Chemicals Industry?

0 Companies	Price / Earnings	Estimated Growth	Market Cap
Industry Avg.	n/a	33.9%
	n/a	n/a	n/a

Fetching data

0 Companies	Price / Earnings	Estimated Growth	Market Cap
Industry Avg.	n/a	33.9%
	n/a	n/a	n/a

No more companies

Price-To-Earnings vs Industry: LTM is good value based on its Price-To-Earnings Ratio (13.3x) compared to the Global Chemicals industry average (21.2x).

Price to Earnings Ratio vs Fair Ratio

What is LTM'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.

LTM PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	13.3x
Fair PE Ratio	24.1x

Price-To-Earnings vs Fair Ratio: LTM is good value based on its Price-To-Earnings Ratio (13.3x) compared to the estimated Fair Price-To-Earnings Ratio (24.1x).

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.