Ramelius Resources Limited

ASX:RMS Stock Report

Market Cap: AU$2.3b

Ramelius Resources Valuation

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

Below Fair Value: RMS (A$2.06) is trading above our estimate of fair value (A$1.74)

Significantly Below Fair Value: RMS is trading above our estimate of fair value.

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for RMS. This is calculated by dividing RMS's market cap by their current earnings.
What is RMS's PE Ratio?
PE Ratio11x
EarningsAU$216.58m
Market CapAU$2.30b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for RMS vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average16.1x
WGX Westgold Resources
27.5x35.2%AU$2.6b
GOR Gold Road Resources
19.2x20.9%AU$1.9b
WAF West African Resources
10.8x28.7%AU$1.6b
PRU Perseus Mining
7.1x-8.6%AU$3.5b
RMS Ramelius Resources
11x-2.9%AU$2.3b

Price-To-Earnings vs Peers: RMS is good value based on its Price-To-Earnings Ratio (11x) compared to the peer average (16.1x).

Price to Earnings Ratio vs Industry

How does RMS'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$214.67m
RHI Red Hill Minerals
1.8xn/aUS$180.10m
GRR Grange Resources
2.6xn/aUS$179.33m
PTN Patronus Resources
2.3xn/aUS$64.49m
RMS 11.0xIndustry Avg. 11.9xNo. of Companies13PE01224364860+
9 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: RMS is good value based on its Price-To-Earnings Ratio (11x) compared to the Australian Metals and Mining industry average (11.9x).

Price to Earnings Ratio vs Fair Ratio

What is RMS'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.

RMS PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio11x
Fair PE Ratio13.2x

Price-To-Earnings vs Fair Ratio: RMS is good value based on its Price-To-Earnings Ratio (11x) compared to the estimated Fair Price-To-Earnings Ratio (13.2x).

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 RMS forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentAU$2.06
AU$2.53
+23.0%
23.4%AU$3.25AU$1.32n/a6
Nov ’25AU$2.33
AU$2.53
+8.7%
23.4%AU$3.25AU$1.32n/a6
Oct ’25AU$2.18
AU$2.24
+2.7%
24.2%AU$2.80AU$1.32n/a7
Sep ’25AU$2.22
AU$2.21
-0.4%
24.1%AU$2.80AU$1.32n/a7
Aug ’25AU$1.96
AU$2.18
+11.0%
24.4%AU$2.80AU$1.32n/a7
Jul ’25AU$1.88
AU$2.08
+11.1%
21.2%AU$2.60AU$1.32n/a7
Jun ’25AU$1.97
AU$2.06
+4.6%
21.3%AU$2.60AU$1.32n/a7
May ’25AU$1.95
AU$2.00
+2.8%
20.8%AU$2.60AU$1.32n/a7
Apr ’25AU$1.86
AU$1.86
-0.2%
17.7%AU$2.25AU$1.32n/a7
Mar ’25AU$1.45
AU$1.80
+24.8%
15.0%AU$2.10AU$1.32n/a6
Feb ’25AU$1.58
AU$1.84
+16.6%
15.0%AU$2.15AU$1.32n/a6
Jan ’25AU$1.69
AU$1.74
+3.4%
13.1%AU$2.00AU$1.32n/a7
Dec ’24AU$1.72
AU$1.70
-1.0%
12.0%AU$2.00AU$1.32n/a7
Nov ’24AU$1.66
AU$1.70
+2.3%
12.0%AU$2.00AU$1.32AU$2.337
Oct ’24AU$1.44
AU$1.65
+14.9%
10.6%AU$1.95AU$1.32AU$2.187
Sep ’24AU$1.38
AU$1.60
+15.8%
9.1%AU$1.80AU$1.32AU$2.227
Aug ’24AU$1.30
AU$1.56
+20.2%
10.8%AU$1.75AU$1.30AU$1.967
Jul ’24AU$1.26
AU$1.52
+20.7%
12.4%AU$1.80AU$1.20AU$1.887
Jun ’24AU$1.42
AU$1.49
+4.9%
12.3%AU$1.80AU$1.20AU$1.977
May ’24AU$1.30
AU$1.47
+13.4%
13.1%AU$1.80AU$1.20AU$1.956
Apr ’24AU$1.27
AU$1.34
+5.2%
9.9%AU$1.50AU$1.10AU$1.867
Mar ’24AU$0.95
AU$1.31
+37.5%
10.6%AU$1.50AU$1.10AU$1.457
Feb ’24AU$1.01
AU$1.31
+30.8%
10.6%AU$1.50AU$1.10AU$1.587
Jan ’24AU$0.93
AU$1.25
+34.4%
12.2%AU$1.50AU$1.00AU$1.697
Dec ’23AU$0.94
AU$1.24
+30.8%
14.4%AU$1.50AU$0.90AU$1.727
Nov ’23AU$0.78
AU$1.22
+57.6%
18.8%AU$1.50AU$0.80AU$1.667

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.

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