Lithium Universe Limited

ASX:LU7 Stock Report

Market Cap: AU$9.8m

Lithium Universe Valuation

Is LU7 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

  • 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 LU7 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: Insufficient data to calculate LU7's fair value for valuation analysis.

Significantly Below Fair Value: Insufficient data to calculate LU7's fair value for valuation analysis.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for LU7?

Key metric: As LU7 barely has revenue we use its Price-To-Book Ratio for relative valuation analysis.

The above table shows the Price to Book ratio for LU7. This is calculated by dividing LU7's market cap by their current book value.
What is LU7's PB Ratio?
PB Ratio1.4x
BookAU$6.77m
Market CapAU$9.81m

Price to Book Ratio vs Peers

How does LU7's PB Ratio compare to its peers?

The above table shows the PB ratio for LU7 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PBEstimated GrowthMarket Cap
Peer Average1.8x
NML Navarre Minerals
0.4xn/aAU$11.3m
PAM Pan Asia Metals
0.7xn/aAU$12.1m
QEM QEM
5.1xn/aAU$8.0m
AON Apollo Minerals
0.9xn/aAU$9.7m
LU7 Lithium Universe
1.4xn/aAU$9.8m

Price-To-Book vs Peers: LU7 is good value based on its Price-To-Book Ratio (1.4x) compared to the peer average (1.8x).

Price to Book Ratio vs Industry

How does LU7'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$32.33m
JRV Jervois Global
0.1xn/aUS$19.33m
ADN Andromeda Metals
0.2x25.5%US$15.44m
CTO Citigold
0.1xn/aUS$7.80m
LU7 1.4xIndustry Avg. 1.1xNo. of Companies93PB00.81.62.43.24+
16 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Book vs Industry: LU7 is expensive based on its Price-To-Book Ratio (1.4x) compared to the Australian Metals and Mining industry average (1.1x).

Price to Book Ratio vs Fair Ratio

What is LU7'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.

LU7 PB Ratio vs Fair Ratio.
Fair Ratio
Current PB Ratio1.4x
Fair PB Ration/a

Price-To-Book vs Fair Ratio: Insufficient data to calculate LU7'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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