Bisalloy Steel Group Valuation

Q: What is the Fair Price of BIS when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

BIS (A$3.84) is trading below our estimate of [[fair value]] (A$31.68)

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

Below Fair Value: BIS (A$3.84) is trading below our estimate of fair value (A$31.68)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for BIS. This is calculated by dividing BIS's market cap by their current earnings.
What is BIS's PE Ratio?
PE Ratio	11.6x
Earnings	AU$15.74m
Market Cap	AU$182.51m

BIS 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	1.2x
Enterprise Value/EBITDA	7.9x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for BIS 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	17.2x
FEX Fenix Resources	5.6x	12.3%	AU$187.4m
BRL Bathurst Resources	4.1x	n/a	AU$143.5m
GRR Grange Resources	2.7x	n/a	AU$283.5m
MGX Mount Gibson Iron	56.5x	n/a	AU$363.1m
BIS Bisalloy Steel Group	11.6x	n/a	AU$182.5m

Price-To-Earnings vs Peers: BIS is good value based on its Price-To-Earnings Ratio (11.6x) compared to the peer average (17.2x).

Price to Earnings Ratio vs Industry

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

9 Companies	Price / Earnings	Estimated Growth	Market Cap
KCN Kingsgate Consolidated	1.8x	-13.3%	US$233.05m
GRR Grange Resources	2.7x	n/a	US$184.45m
RHI Red Hill Minerals	1.8x	n/a	US$182.71m
PTN Patronus Resources	2.3x	n/a	US$66.04m

9 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: BIS is good value based on its Price-To-Earnings Ratio (11.6x) compared to the Australian Metals and Mining industry average (11.9x).

Price to Earnings Ratio vs Fair Ratio

What is BIS'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.

BIS PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	11.6x
Fair PE Ratio	n/a

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