MLG Oz Limited

ASX:MLG Stock Report

Market Cap: AU$90.0m

MLG Oz Valuation

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

Valuation Score

4/6

Valuation Score 4/6

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

Below Fair Value: MLG (A$0.61) is trading below our estimate of fair value (A$1.14)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for MLG. This is calculated by dividing MLG's market cap by their current earnings.
What is MLG's PE Ratio?
PE Ratio8.2x
EarningsAU$10.96m
Market CapAU$90.05m

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for MLG vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average3.5x
MSV Mitchell Services
7.9x6.8%AU$72.5m
CEL Challenger Gold
1.1xn/aAU$81.3m
MYE Metarock Group
2.4xn/aAU$51.0m
PTN Patronus Resources
2.4xn/aAU$104.8m
MLG MLG Oz
8.2x26.6%AU$90.0m

Price-To-Earnings vs Peers: MLG is expensive based on its Price-To-Earnings Ratio (8.2x) compared to the peer average (3.5x).

Price to Earnings Ratio vs Industry

How does MLG'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$68.31m
MLG 8.2xIndustry Avg. 12.1xNo. of Companies13PE01224364860+
9 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: MLG is good value based on its Price-To-Earnings Ratio (8.2x) compared to the Australian Metals and Mining industry average (11.9x).

Price to Earnings Ratio vs Fair Ratio

What is MLG'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.

MLG PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio8.2x
Fair PE Ratio16.9x

Price-To-Earnings vs Fair Ratio: MLG is good value based on its Price-To-Earnings Ratio (8.2x) compared to the estimated Fair Price-To-Earnings Ratio (16.9x).

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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