Red Hill Minerals Valuation

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

Below Fair Value: Insufficient data to calculate RHI's fair value for valuation analysis.

Significantly Below Fair Value: Insufficient data to calculate RHI's fair value for valuation analysis.

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for RHI. This is calculated by dividing RHI's market cap by their current earnings.
What is RHI's PE Ratio?
PE Ratio	1.8x
Earnings	AU$153.56m
Market Cap	AU$273.82m

RHI 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	183.2x
Enterprise Value/EBITDA	-55.9x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for RHI vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	19.2x
MGX Mount Gibson Iron	56.5x	n/a	AU$369.2m
BIS Bisalloy Steel Group	12.1x	n/a	AU$184.9m
FEX Fenix Resources	5.5x	12.3%	AU$187.4m
GRR Grange Resources	2.6x	n/a	AU$277.8m
RHI Red Hill Minerals	1.8x	n/a	AU$273.8m

Price-To-Earnings vs Peers: RHI is good value based on its Price-To-Earnings Ratio (1.8x) compared to the peer average (19.2x).

Price to Earnings Ratio vs Industry

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

9 Companies	Price / Earnings	Estimated Growth	Market Cap
Industry Avg.	11.9x	10.7%
RHI Red Hill Minerals	1.8x	n/a	US$178.04m
KCN Kingsgate Consolidated	1.7x	-13.3%	US$224.57m
GRR Grange Resources	2.6x	n/a	US$180.60m

9 Companies		Estimated Growth	Market Cap
Industry Avg.	11.9x	10.7%
RHI Red Hill Minerals	1.8x	n/a	US$178.04m

No more companies

Price-To-Earnings vs Industry: RHI is good value based on its Price-To-Earnings Ratio (1.8x) compared to the Australian Metals and Mining industry average (11.9x).

Price to Earnings Ratio vs Fair Ratio

What is RHI'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.

RHI PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	1.8x
Fair PE Ratio	n/a

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