Magontec Valuation

Is MGL 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-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales vs Fair Ratio
Analyst Forecast

Share Price vs Fair Value

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

Below Fair Value: MGL (A$0.21) is trading above our estimate of fair value (A$0.18)

Significantly Below Fair Value: MGL is trading above our estimate of fair value.

Key Valuation Metric

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

Key metric: As MGL is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for MGL. This is calculated by dividing MGL's market cap by their current revenue.
What is MGL's PS Ratio?
PS Ratio	0.2x
Sales	AU$81.93m
Market Cap	AU$16.33m

MGL 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	0.1x
Enterprise Value/EBITDA	-2.4x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does MGL's PS Ratio compare to its peers?

The above table shows the PS ratio for MGL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PS	Estimated Growth	Market Cap
Peer Average	28.9x
SUM Summit Minerals	39.5x	n/a	AU$13.6m
AQD AusQuest	52.2x	n/a	AU$9.0m
MRC Mineral Commodities	0.6x	n/a	AU$25.6m
ZNC Zenith Minerals	23.4x	-27.3%	AU$15.6m
MGL Magontec	0.2x	9.4%	AU$16.3m

Price-To-Sales vs Peers: MGL is good value based on its Price-To-Sales Ratio (0.2x) compared to the peer average (25.2x).

Price to Sales Ratio vs Industry

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

122 Companies	Price / Sales	Estimated Growth	Market Cap
Industry Avg.	61.1x	2.6%
MGL Magontec	0.2x	9.4%	US$10.61m
BHP BHP Group	2.4x	-4.1%	US$132.38b
FMG Fortescue	2x	-5.6%	US$36.60b

122 Companies		Estimated Growth	Market Cap
Industry Avg.	61.1x	10.6%
MGL Magontec	0.2x	109.7%	US$10.61m

No more companies

Price-To-Sales vs Industry: MGL is good value based on its Price-To-Sales Ratio (0.2x) compared to the Australian Metals and Mining industry average (61.1x).

Price to Sales Ratio vs Fair Ratio

What is MGL's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

MGL PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	0.2x
Fair PS Ratio	0.4x

Price-To-Sales vs Fair Ratio: MGL is good value based on its Price-To-Sales Ratio (0.2x) compared to the estimated Fair Price-To-Sales Ratio (0.4x).

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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