We’ve recently updated our valuation analysis.

Lynas Rare Earths Valuation

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

Valuation Score

3/6

Valuation Score 3/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

LYC 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/Revenue8.4x
Enterprise Value/EBITDA14.5x
PEG Ratio1x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for LYC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average23.6x
IGO IGO
13.3x-11.4%AU$11.1b
MIN Mineral Resources
48x17.6%AU$16.8b
NIC Nickel Industries
14x22.1%AU$3.3b
AKE Allkem
19x17.7%AU$8.4b
LYC Lynas Rare Earths
15.7x15.4%AU$8.5b


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a-4.2%
n/an/an/a


Price to Earnings Ratio vs Fair Ratio

What is LYC'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.

LYC PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio15.7x
Fair PE Ratio19.2x

Price-To-Earnings vs Fair Ratio: LYC is good value based on its Price-To-Earnings Ratio (15.7x) compared to the estimated Fair Price-To-Earnings Ratio (19.2x).


Share Price vs Fair Value

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


Analyst Price Targets

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

The above table shows the analyst LYC forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentAU$9.40
AU$9.99
+6.3%
20.1%AU$12.78AU$4.95n/a12
Jan ’24AU$7.85
AU$9.57
+21.9%
22.9%AU$12.78AU$4.95n/a10
Dec ’23AU$8.80
AU$9.54
+8.4%
23.1%AU$12.78AU$4.95n/a10
Nov ’23AU$8.64
AU$9.43
+9.2%
21.6%AU$12.78AU$4.95n/a10
Oct ’23AU$7.56
AU$10.06
+33.1%
24.2%AU$13.00AU$4.80n/a8
Sep ’23AU$8.70
AU$10.20
+17.3%
24.3%AU$13.00AU$4.85n/a8
Aug ’23AU$9.10
AU$10.26
+12.7%
25.2%AU$13.00AU$4.70n/a8
Jul ’23AU$8.96
AU$10.53
+17.5%
24.2%AU$13.00AU$4.70n/a8
Jun ’23AU$9.22
AU$10.56
+14.5%
25.6%AU$13.00AU$4.70n/a7
May ’23AU$9.16
AU$10.56
+15.3%
25.6%AU$13.00AU$4.70n/a7
Apr ’23AU$11.09
AU$10.98
-1.0%
28.2%AU$14.00AU$4.50n/a6
Mar ’23AU$10.64
AU$10.68
+0.4%
25.3%AU$13.00AU$4.50n/a7
Feb ’23AU$8.91
AU$10.15
+13.9%
28.6%AU$13.00AU$4.50AU$9.707
Jan ’23AU$10.17
AU$9.03
-11.2%
27.2%AU$12.20AU$4.60AU$7.857
Dec ’22AU$9.11
AU$7.79
-14.5%
27.0%AU$10.50AU$4.30AU$8.806
Nov ’22AU$7.49
AU$7.03
-6.1%
25.9%AU$10.00AU$4.30AU$8.645
Oct ’22AU$6.50
AU$6.81
+4.8%
27.0%AU$10.00AU$4.30AU$7.565
Sep ’22AU$6.79
AU$6.82
+0.4%
26.9%AU$10.00AU$4.30AU$8.705
Aug ’22AU$7.34
AU$6.86
-6.5%
26.7%AU$10.00AU$4.30AU$9.105
Jul ’22AU$5.77
AU$6.19
+7.3%
35.3%AU$10.00AU$3.90AU$8.965
Jun ’22AU$5.25
AU$6.19
+17.9%
35.3%AU$10.00AU$3.90AU$9.225
May ’22AU$5.50
AU$5.73
+4.1%
39.3%AU$10.00AU$3.40AU$9.166
Apr ’22AU$6.16
AU$5.63
-8.7%
41.4%AU$10.00AU$3.35AU$11.096
Mar ’22AU$6.07
AU$4.68
-23.0%
27.3%AU$6.55AU$3.35AU$10.646
Feb ’22AU$4.83
AU$4.31
-10.8%
23.0%AU$5.75AU$2.90AU$8.916


Discover undervalued companies