Regis Resources Limited

ASX:RRL Stock Report

Market Cap: AU$2.0b

Regis Resources Valuation

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

Below Fair Value: RRL (A$2.65) is trading below our estimate of fair value (A$9.53)

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

Key Valuation Metric

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

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

The above table shows the Price to Sales ratio for RRL. This is calculated by dividing RRL's market cap by their current revenue.
What is RRL's PS Ratio?
PS Ratio1.6x
SalesAU$1.26b
Market CapAU$1.99b

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for RRL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average3.2x
GOR Gold Road Resources
4.5x11.9%AU$2.0b
RMS Ramelius Resources
2.7x-9.0%AU$2.4b
WAF West African Resources
2.4x23.9%AU$1.7b
WGX Westgold Resources
3.3x18.3%AU$2.6b
RRL Regis Resources
1.6x2.4%AU$2.0b

Price-To-Sales vs Peers: RRL is good value based on its Price-To-Sales Ratio (1.6x) compared to the peer average (3.2x).

Price to Sales Ratio vs Industry

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

123 CompaniesPrice / SalesEstimated GrowthMarket Cap
Industry Avg.61.9x2.7%
RRL Regis Resources
 1.6x2.4%US$1.29b
BHP BHP Group
2.3x-4.1%US$132.18b
FMG Fortescue
2x-5.6%US$35.50b
RRL 1.6xIndustry Avg. 61.9xNo. of Companies123PS020406080100+
123 CompaniesEstimated GrowthMarket Cap
Industry Avg.61.9x10.7%
RRL Regis Resources
 1.6x56.2%US$1.29b
No more companies

Price-To-Sales vs Industry: RRL is good value based on its Price-To-Sales Ratio (1.6x) compared to the Australian Metals and Mining industry average (61.9x).

Price to Sales Ratio vs Fair Ratio

What is RRL'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.

RRL PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio1.6x
Fair PS Ratio0.5x

Price-To-Sales vs Fair Ratio: RRL is expensive based on its Price-To-Sales Ratio (1.6x) compared to the estimated Fair Price-To-Sales Ratio (0.5x).

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 RRL forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentAU$2.65
AU$2.61
-1.5%
20.6%AU$3.35AU$1.75n/a11
Nov ’25AU$2.70
AU$2.61
-3.5%
20.9%AU$3.35AU$1.75n/a11
Oct ’25AU$2.01
AU$2.02
+0.6%
21.0%AU$2.90AU$1.25n/a11
Sep ’25AU$1.87
AU$1.99
+6.4%
19.5%AU$2.70AU$1.25n/a11
Aug ’25AU$1.68
AU$2.06
+22.7%
17.5%AU$2.70AU$1.40n/a11
Jul ’25AU$1.76
AU$2.31
+31.4%
20.2%AU$3.10AU$1.55n/a11
Jun ’25AU$1.86
AU$2.27
+22.2%
20.9%AU$3.10AU$1.40n/a11
May ’25AU$2.09
AU$2.21
+5.5%
21.1%AU$2.80AU$1.30n/a11
Apr ’25AU$2.02
AU$2.16
+7.0%
22.7%AU$2.70AU$1.25n/a11
Mar ’25AU$1.82
AU$2.14
+17.8%
22.1%AU$2.60AU$1.25n/a11
Feb ’25AU$1.98
AU$2.14
+8.2%
22.1%AU$2.60AU$1.25n/a11
Jan ’25AU$2.18
AU$1.95
-10.4%
19.9%AU$2.50AU$1.20n/a11
Dec ’24AU$1.95
AU$1.91
-1.7%
19.0%AU$2.40AU$1.20n/a11
Nov ’24AU$1.75
AU$1.88
+7.7%
21.1%AU$2.40AU$1.10AU$2.7011
Oct ’24AU$1.49
AU$1.85
+23.9%
20.8%AU$2.40AU$1.10AU$2.0111
Sep ’24AU$1.60
AU$1.82
+13.6%
20.0%AU$2.30AU$1.10AU$1.8711
Aug ’24AU$1.70
AU$2.04
+20.2%
15.2%AU$2.77AU$1.50AU$1.6811
Jul ’24AU$1.83
AU$2.36
+28.8%
16.7%AU$2.90AU$1.75AU$1.7610
Jun ’24AU$2.06
AU$2.37
+15.2%
16.3%AU$2.90AU$1.75AU$1.8610
May ’24AU$2.12
AU$2.41
+13.8%
16.1%AU$2.90AU$1.75AU$2.0911
Apr ’24AU$2.08
AU$2.16
+4.0%
22.9%AU$3.10AU$1.50AU$2.0211
Mar ’24AU$1.81
AU$2.11
+17.1%
21.4%AU$2.75AU$1.50AU$1.8211
Feb ’24AU$2.14
AU$2.22
+3.9%
22.0%AU$3.10AU$1.50AU$1.9812
Jan ’24AU$2.06
AU$2.11
+2.7%
21.3%AU$3.10AU$1.55AU$2.1812
Dec ’23AU$2.00
AU$2.08
+4.1%
21.8%AU$3.10AU$1.55AU$1.9512
Nov ’23AU$1.57
AU$1.92
+22.6%
27.5%AU$3.10AU$1.30AU$1.7512

Analyst Forecast: Target price is lower than the current share price.

Discover undervalued companies

Incitec Pivot

AU$5.9b

Manufactures and distributes industrial explosives, industrial chemicals, and fertilizers in Australia and the United State.

IPL

AU$3.15

7D

4.8%

1Y

10.2%

Capral

AU$160.0m

Manufactures, markets, and distributes fabricated and semi-fabricated aluminum related products in Australia.

CAA

AU$9.19

7D

-2.9%

1Y

5.1%

Nufarm

AU$1.6b

Develops, manufactures, and sells crop protection solutions and seed technologies in Europe, the Middle East, Africa, North America, and the Asia Pacific.

NUF

AU$4.07

7D

4.9%

1Y

-11.5%