Vulcan Steel Limited

ASX:VSL Stock Report

Market Cap: AU$926.5m

Vulcan Steel Valuation

Is VSL undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

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

Below Fair Value: VSL (A$7.03) is trading above our estimate of fair value (A$4.98)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for VSL. This is calculated by dividing VSL's market cap by their current earnings.
What is VSL's PE Ratio?
PE Ratio25.6x
EarningsNZ$39.99m
Market CapNZ$1.02b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for VSL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average10.5x
DRR Deterra Royalties
12.8x-6.1%AU$2.0b
CIA Champion Iron
10.5x6.3%AU$2.9b
BIS Bisalloy Steel Group
13.3xn/aAU$208.9m
FEX Fenix Resources
5.6x10.9%AU$187.4m
VSL Vulcan Steel
25.6x22.6%AU$926.5m

Price-To-Earnings vs Peers: VSL is expensive based on its Price-To-Earnings Ratio (25.6x) compared to the peer average (10.5x).

Price to Earnings Ratio vs Industry

How does VSL'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$207.15m
RHI Red Hill Minerals
1.7xn/aUS$165.24m
GRR Grange Resources
2.4xn/aUS$159.24m
PTN Patronus Resources
1.8xn/aUS$50.18m
VSL 25.6xIndustry Avg. 12.8xNo. of Companies10PE01020304050+
9 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: VSL is expensive based on its Price-To-Earnings Ratio (25.6x) compared to the Australian Metals and Mining industry average (12.8x).

Price to Earnings Ratio vs Fair Ratio

What is VSL'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.

VSL PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio25.6x
Fair PE Ratio19.4x

Price-To-Earnings vs Fair Ratio: VSL is expensive based on its Price-To-Earnings Ratio (25.6x) compared to the estimated Fair Price-To-Earnings Ratio (19.4x).

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 VSL forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentAU$7.03
AU$6.81
-3.1%
9.7%AU$7.83AU$6.18n/a5
Dec ’25AU$7.32
AU$6.87
-6.2%
9.3%AU$7.79AU$6.14n/a5
Nov ’25AU$7.69
AU$6.95
-9.6%
9.7%AU$7.86AU$6.20n/a5
Oct ’25AU$7.53
AU$7.08
-6.0%
9.2%AU$7.81AU$6.11n/a5
Sep ’25AU$7.40
AU$6.98
-5.6%
10.6%AU$7.82AU$6.12n/a5
Aug ’25AU$6.50
AU$7.48
+15.0%
10.1%AU$8.60AU$6.28n/a5
Jul ’25AU$6.50
AU$7.91
+21.7%
10.7%AU$8.82AU$6.41n/a5
Jun ’25AU$7.21
AU$7.85
+8.9%
10.4%AU$8.80AU$6.39n/a5
May ’25AU$7.40
AU$8.22
+11.1%
8.9%AU$9.01AU$6.97n/a5
Apr ’25AU$8.43
AU$8.12
-3.6%
8.3%AU$9.00AU$6.97n/a5
Mar ’25AU$7.90
AU$8.11
+2.6%
7.3%AU$8.62AU$7.15n/a4
Feb ’25AU$7.34
AU$8.11
+10.4%
8.0%AU$9.05AU$7.25n/a4
Jan ’25AU$7.65
AU$8.36
+9.3%
9.5%AU$9.12AU$7.27n/a4
Dec ’24AU$7.35
AU$8.54
+16.1%
8.0%AU$9.23AU$7.59AU$7.325
Nov ’24AU$7.39
AU$8.64
+16.9%
8.0%AU$9.41AU$7.73AU$7.694
Oct ’24AU$7.35
AU$8.47
+15.3%
7.7%AU$9.18AU$7.54AU$7.534
Sep ’24AU$7.79
AU$8.83
+13.3%
4.8%AU$9.22AU$8.24AU$7.403
Aug ’24AU$7.76
AU$8.82
+13.6%
4.1%AU$9.27AU$8.38AU$6.503
Jul ’24AU$8.22
AU$8.62
+4.9%
9.5%AU$9.16AU$7.20AU$6.504
Jun ’24AU$7.58
AU$8.93
+17.8%
9.7%AU$9.50AU$7.43AU$7.214
May ’24AU$7.88
AU$8.69
+10.3%
10.8%AU$9.41AU$7.36AU$7.403
Apr ’24AU$7.67
AU$8.78
+14.4%
10.6%AU$9.62AU$7.20AU$8.434
Mar ’24AU$8.49
AU$8.78
+3.4%
10.6%AU$9.62AU$7.20AU$7.904
Feb ’24AU$8.93
AU$9.46
+6.0%
7.9%AU$9.94AU$8.18AU$7.344
Jan ’24AU$8.17
AU$9.46
+15.8%
7.9%AU$9.94AU$8.18AU$7.654
Dec ’23AU$8.26
AU$9.37
+13.4%
7.3%AU$9.81AU$8.19AU$7.354

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

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/21 21:11
End of Day Share Price 2024/12/20 00:00
Earnings2024/06/30
Annual Earnings2024/06/30

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Vulcan Steel Limited is covered by 6 analysts. 6 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Shaurya VisenBofA Global Research
Rohan Koreman-SmitForsyth Barr Group Ltd.
Grant SwanepoelJarden Limited