Newfield Resources Valuation

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

NWF (A$0.09) is trading below our estimate of [[fair value]] (A$2.38)

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

Below Fair Value: NWF (A$0.09) is trading below our estimate of fair value (A$2.38)

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

Key Valuation Metric

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

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

The above table shows the Price to Sales ratio for NWF. This is calculated by dividing NWF's market cap by their current revenue.
What is NWF's PS Ratio?
PS Ratio	40.6x
Sales	AU$2.06m
Market Cap	AU$83.72m

NWF 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	41.7x
Enterprise Value/EBITDA	-0.7x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for NWF 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	1.3x
LOM Lucapa Diamond	0.3x	n/a	AU$11.3m
PGM Platina Resources	0.7x	n/a	AU$13.7m
AGD Austral Gold	0.2x	n/a	AU$14.1m
LKE Lake Resources	3.8x	-120.1%	AU$83.4m
NWF Newfield Resources	40.6x	55.4%	AU$83.7m

Price-To-Sales vs Peers: NWF is expensive based on its Price-To-Sales Ratio (40.6x) compared to the peer average (1.3x).

Price to Sales Ratio vs Industry

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

123 Companies	Price / Sales	Estimated Growth	Market Cap
BHP BHP Group	2.3x	-4.1%	US$131.63b
FMG Fortescue	2x	-5.6%	US$36.31b
NCM Newcrest Mining	3x	5.2%	US$13.37b
NST Northern Star Resources	4.1x	8.5%	US$13.15b

123 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Sales vs Industry: NWF is good value based on its Price-To-Sales Ratio (40.6x) compared to the Australian Metals and Mining industry average (61.9x).

Price to Sales Ratio vs Fair Ratio

What is NWF'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.

NWF PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	40.6x
Fair PS Ratio	1.3x

Price-To-Sales vs Fair Ratio: NWF is expensive based on its Price-To-Sales Ratio (40.6x) compared to the estimated Fair Price-To-Sales Ratio (1.3x).

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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