Perenti Limited

ASX:PRN Stock Report

Market Cap: AU$1.1b

Perenti Valuation

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

Below Fair Value: PRN (A$1.26) is trading below our estimate of fair value (A$4.86)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for PRN. This is calculated by dividing PRN's market cap by their current earnings.
What is PRN's PE Ratio?
PE Ratio12.1x
EarningsAU$95.48m
Market CapAU$1.15b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for PRN vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average26.1x
IMD Imdex
39.8x19.6%AU$1.3b
BLY Boart Longyear Group
42.4xn/aAU$861.1m
MAH Macmahon Holdings
13.7x11.1%AU$728.5m
ILU Iluka Resources
8.4x5.5%AU$2.3b
PRN Perenti
12.1x23.3%AU$1.1b

Price-To-Earnings vs Peers: PRN is good value based on its Price-To-Earnings Ratio (12.1x) compared to the peer average (26.1x).

Price to Earnings Ratio vs Industry

How does PRN'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$224.57m
GRR Grange Resources
2.6xn/aUS$180.60m
RHI Red Hill Minerals
1.8xn/aUS$178.04m
PTN Patronus Resources
2.4xn/aUS$66.01m
PRN 12.1xIndustry Avg. 11.9xNo. of Companies13PE01224364860+
9 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: PRN is expensive based on its Price-To-Earnings Ratio (12.1x) compared to the Australian Metals and Mining industry average (11.9x).

Price to Earnings Ratio vs Fair Ratio

What is PRN'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.

PRN PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio12.1x
Fair PE Ratio19x

Price-To-Earnings vs Fair Ratio: PRN is good value based on its Price-To-Earnings Ratio (12.1x) compared to the estimated Fair Price-To-Earnings Ratio (19x).

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 PRN forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentAU$1.26
AU$1.33
+5.7%
11.6%AU$1.50AU$1.10n/a7
Nov ’25AU$1.17
AU$1.30
+11.9%
11.8%AU$1.50AU$1.10n/a6
Oct ’25AU$1.06
AU$1.36
+28.0%
18.0%AU$1.88AU$1.10n/a7
Sep ’25AU$1.04
AU$1.36
+31.1%
18.0%AU$1.88AU$1.10n/a7
Aug ’25AU$1.04
AU$1.44
+38.8%
17.4%AU$1.88AU$1.25n/a6
Jul ’25AU$1.02
AU$1.43
+40.9%
18.2%AU$1.88AU$1.25n/a6
Jun ’25AU$1.01
AU$1.43
+42.3%
18.2%AU$1.88AU$1.25n/a6
May ’25AU$0.95
AU$1.37
+44.1%
20.7%AU$1.88AU$1.00n/a7
Apr ’25AU$0.98
AU$1.37
+39.7%
20.7%AU$1.88AU$1.00n/a7
Mar ’25AU$0.91
AU$1.28
+41.8%
16.2%AU$1.70AU$1.00n/a6
Feb ’25AU$0.82
AU$1.33
+62.6%
16.7%AU$1.70AU$1.00n/a6
Jan ’25AU$1.04
AU$1.43
+37.0%
10.1%AU$1.70AU$1.25n/a6
Dec ’24AU$1.12
AU$1.43
+27.2%
10.1%AU$1.70AU$1.25n/a6
Nov ’24AU$1.07
AU$1.41
+32.4%
10.8%AU$1.70AU$1.25AU$1.175
Oct ’24AU$1.08
AU$1.43
+32.2%
10.5%AU$1.70AU$1.25AU$1.065
Sep ’24AU$1.03
AU$1.43
+39.3%
10.5%AU$1.70AU$1.25AU$1.045
Aug ’24AU$1.21
AU$1.47
+21.7%
9.8%AU$1.70AU$1.25AU$1.045
Jul ’24AU$1.03
AU$1.54
+49.9%
6.6%AU$1.70AU$1.44AU$1.025
Jun ’24AU$1.11
AU$1.46
+31.7%
4.8%AU$1.60AU$1.40AU$1.016
May ’24AU$1.26
AU$1.46
+16.0%
4.8%AU$1.60AU$1.40AU$0.956
Apr ’24AU$1.22
AU$1.47
+20.7%
5.2%AU$1.60AU$1.40AU$0.985
Mar ’24AU$1.06
AU$1.40
+32.7%
11.7%AU$1.60AU$1.07AU$0.916
Feb ’24AU$1.28
AU$1.28
+0.3%
10.3%AU$1.43AU$1.07AU$0.826
Jan ’24AU$1.32
AU$1.28
-2.4%
10.3%AU$1.43AU$1.07AU$1.046
Dec ’23AU$1.11
AU$1.21
+9.2%
6.7%AU$1.30AU$1.07AU$1.125
Nov ’23AU$0.97
AU$1.06
+9.1%
9.5%AU$1.21AU$0.91AU$1.075

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

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