Mount Gibson Iron Limited

ASX:MGX Stock Report

Market Cap: AU$369.2m

Mount Gibson Iron Valuation

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

Valuation Score

2/6

Valuation Score 2/6

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

Below Fair Value: MGX (A$0.3) is trading below our estimate of fair value (A$28.45)

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

Key Valuation Metric

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

Key metric: As MGX is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for MGX. This is calculated by dividing MGX's market cap by their current earnings.
What is MGX's PE Ratio?
PE Ratio56.5x
EarningsAU$6.43m
Market CapAU$369.20m

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for MGX vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average5.5x
RHI Red Hill Minerals
1.8xn/aAU$275.7m
BIS Bisalloy Steel Group
12.1xn/aAU$190.2m
FEX Fenix Resources
5.5x12.3%AU$183.8m
GRR Grange Resources
2.6xn/aAU$277.8m
MGX Mount Gibson Iron
56.5xn/aAU$363.1m

Price-To-Earnings vs Peers: MGX is expensive based on its Price-To-Earnings Ratio (56.5x) compared to the peer average (5.5x).

Price to Earnings Ratio vs Industry

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

9 CompaniesPrice / EarningsEstimated GrowthMarket Cap
KCN Kingsgate Consolidated
1.7x-13.3%US$225.14m
GRR Grange Resources
2.6xn/aUS$181.06m
RHI Red Hill Minerals
1.8xn/aUS$179.75m
PTN Patronus Resources
2.4xn/aUS$66.01m
MGX 56.5xIndustry Avg. 11.9xNo. of Companies13PE01224364860+
9 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: MGX is expensive based on its Price-To-Earnings Ratio (56.5x) compared to the Australian Metals and Mining industry average (11.9x).

Price to Earnings Ratio vs Fair Ratio

What is MGX'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.

MGX PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio56.5x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate MGX's Price-To-Earnings 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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