Vulcan Steel Limited

ASX:VSL Stock Report

Market Cap: AU$979.2m

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$7.18) is trading above our estimate of fair value (A$4.89)

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 Ratio26.2x
EarningsNZ$39.99m
Market CapNZ$1.08b

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 Average10x
DRR Deterra Royalties
12.4x-6.9%AU$1.9b
CIA Champion Iron
10.2x7.5%AU$2.8b
BIS Bisalloy Steel Group
12.1xn/aAU$184.9m
FEX Fenix Resources
5.5x12.3%AU$187.4m
VSL Vulcan Steel
26.2x22.9%AU$979.2m

Price-To-Earnings vs Peers: VSL is expensive based on its Price-To-Earnings Ratio (26.2x) compared to the peer average (10x).

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$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
VSL 26.2xIndustry Avg. 11.9xNo. of Companies13PE01224364860+
9 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: VSL is expensive based on its Price-To-Earnings Ratio (26.2x) compared to the Australian Metals and Mining industry average (11.9x).

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 Ratio26.2x
Fair PE Ratio19.6x

Price-To-Earnings vs Fair Ratio: VSL is expensive based on its Price-To-Earnings Ratio (26.2x) compared to the estimated Fair Price-To-Earnings Ratio (19.6x).

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$7.18
AU$6.85
-4.6%
8.9%AU$7.87AU$6.20n/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$7.59n/a5
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
Nov ’23AU$7.71
AU$9.28
+20.3%
7.4%AU$10.04AU$8.16AU$7.394

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

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