We’ve recently updated our valuation analysis.

Nickel Industries Valuation

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

Valuation Score

4/6

Valuation Score 4/6

  • 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 NIC?

Other financial metrics that can be useful for relative valuation.

NIC 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/Revenue3.3x
Enterprise Value/EBITDA10x
PEG Ratio0.5x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for NIC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average17.4x
LYC Lynas Rare Earths
15.2x16.5%AU$8.2b
ILU Iluka Resources
9.6x-20.3%AU$4.7b
IMD Imdex
22.5x17.4%AU$1.0b
PRN Perenti
22.2x24.3%AU$901.7m
NIC Nickel Industries
14.1x26.2%AU$3.3b

Price-To-Earnings vs Peers: NIC is good value based on its Price-To-Earnings Ratio (14.1x) compared to the peer average (17.4x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a-4.0%
n/an/an/a

Price-To-Earnings vs Industry: NIC is expensive based on its Price-To-Earnings Ratio (14.1x) compared to the Australian Metals and Mining industry average (11.9x)


Price to Earnings Ratio vs Fair Ratio

What is NIC'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.

NIC PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio14.1x
Fair PE Ratio21.8x

Price-To-Earnings vs Fair Ratio: NIC is good value based on its Price-To-Earnings Ratio (14.1x) compared to the estimated Fair Price-To-Earnings Ratio (21.8x).


Share Price vs Fair Value

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

Below Fair Value: NIC (A$1.1) is trading below our estimate of fair value (A$8.26)

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


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 NIC forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentAU$1.10
AU$1.28
+17.2%
20.8%AU$1.71AU$0.97n/a7
Jan ’24AU$0.97
AU$1.24
+27.4%
25.6%AU$1.71AU$0.80n/a7
Dec ’23AU$1.01
AU$1.19
+18.1%
29.2%AU$1.71AU$0.80n/a7
Nov ’23AU$0.79
AU$1.16
+48.1%
31.9%AU$1.71AU$0.73n/a7
Oct ’23AU$0.79
AU$1.32
+67.2%
25.5%AU$1.83AU$0.74n/a8
Sep ’23AU$0.94
AU$1.37
+46.1%
21.1%AU$1.83AU$1.00n/a8
Aug ’23AU$1.07
AU$1.55
+44.6%
19.9%AU$2.08AU$1.00n/a8
Jul ’23AU$0.96
AU$1.53
+58.0%
22.7%AU$2.00AU$0.80n/a8
Jun ’23AU$1.24
AU$1.57
+26.4%
20.2%AU$2.00AU$0.80n/a9
May ’23AU$1.32
AU$1.54
+17.5%
21.2%AU$2.00AU$0.80n/a9
Apr ’23AU$1.28
AU$1.51
+18.3%
20.8%AU$1.90AU$0.80n/a9
Mar ’23AU$1.54
AU$1.74
+13.1%
8.1%AU$2.00AU$1.60n/a10
Feb ’23AU$1.45
AU$1.71
+18.0%
10.5%AU$2.00AU$1.45n/a10
Jan ’23AU$1.43
AU$1.59
+10.9%
11.1%AU$2.00AU$1.40AU$0.9710
Dec ’22AU$1.42
AU$1.49
+4.6%
5.6%AU$1.68AU$1.40AU$1.0110
Nov ’22AU$1.05
AU$1.28
+22.2%
11.8%AU$1.40AU$1.00AU$0.7910
Oct ’22AU$0.91
AU$1.30
+42.9%
12.9%AU$1.50AU$1.05AU$0.799
Sep ’22AU$1.01
AU$1.30
+29.4%
12.9%AU$1.50AU$1.05AU$0.949
Aug ’22AU$1.10
AU$1.31
+19.5%
12.4%AU$1.52AU$1.05AU$1.078
Jul ’22AU$1.00
AU$1.30
+29.7%
15.2%AU$1.56AU$1.00AU$0.968
Jun ’22AU$1.02
AU$1.33
+30.8%
15.2%AU$1.56AU$1.00AU$1.248
May ’22AU$1.14
AU$1.45
+27.5%
13.6%AU$1.70AU$1.01AU$1.327
Apr ’22AU$1.27
AU$1.56
+23.5%
9.3%AU$1.70AU$1.26AU$1.287
Mar ’22AU$1.38
AU$1.58
+14.6%
9.1%AU$1.70AU$1.26AU$1.547
Feb ’22AU$1.28
AU$1.52
+18.7%
9.4%AU$1.70AU$1.26AU$1.457
Jan ’22AU$1.11
AU$1.36
+23.1%
7.5%AU$1.50AU$1.20AU$1.437

Analyst Forecast: Target price is less than 20% higher than the current share price.


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