Meeka Metals Limited

ASX:MEK Stock Report

Market Cap: AU$157.1m

Meeka Metals Valuation

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

Valuation Score

3/6

Valuation Score 3/6

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

Below Fair Value: MEK (A$0.07) is trading below our estimate of fair value (A$0.91)

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

Key Valuation Metric

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

Key metric: As MEK is unprofitable and pre-revenue we use its Price-To-Book Ratio for relative valuation analysis.

The above table shows the Price to Book ratio for MEK. This is calculated by dividing MEK's market cap by their current book value.
What is MEK's PB Ratio?
PB Ratio5.6x
BookAU$27.92m
Market CapAU$157.08m

Price to Book Ratio vs Peers

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

The above table shows the PB ratio for MEK vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PBEstimated GrowthMarket Cap
Peer Average7.5x
AAR Astral Resources
4.5xn/aAU$156.2m
X64 Ten Sixty Four
0.4xn/aAU$129.9m
AME Alto Metals
1.9xn/aAU$61.3m
LRL Labyrinth Resources
23xn/aAU$115.5m
MEK Meeka Metals
5.6x49.7%AU$157.1m

Price-To-Book vs Peers: MEK is good value based on its Price-To-Book Ratio (5.6x) compared to the peer average (9.8x).

Price to Book Ratio vs Industry

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

17 CompaniesPrice / BookEstimated GrowthMarket Cap
HAS Hastings Technology Metals
0.2x12.6%US$31.24m
JRV Jervois Global
0.1xn/aUS$19.38m
ADN Andromeda Metals
0.2x25.5%US$17.69m
CTO Citigold
0.1xn/aUS$7.80m
MEK 5.6xIndustry Avg. 1.2xNo. of Companies95PB00.81.62.43.24+
17 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Book vs Industry: MEK is expensive based on its Price-To-Book Ratio (5.6x) compared to the Australian Metals and Mining industry average (1.2x).

Price to Book Ratio vs Fair Ratio

What is MEK'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.

MEK PB Ratio vs Fair Ratio.
Fair Ratio
Current PB Ratio5.6x
Fair PB Ration/a

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