Deterra Royalties Limited

CHIA:DRR Stock Report

Market Cap: AU$2.0b

Deterra Royalties Valuation

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

Valuation Score

2/6

Valuation Score 2/6

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

Below Fair Value: DRR (A$3.85) is trading below our estimate of fair value (A$4)

Significantly Below Fair Value: DRR is trading below fair value, but not by a significant amount.

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for DRR. This is calculated by dividing DRR's market cap by their current earnings.
What is DRR's PE Ratio?
PE Ratio13.2x
EarningsAU$154.89m
Market CapAU$2.04b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for DRR vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average13.6x
CIA Champion Iron
10.7x6.3%AU$3.0b
VSL Vulcan Steel
27.2x22.6%AU$985.8m
SMR Stanmore Resources
6.2x-17.8%AU$2.7b
BSL BlueScope Steel
10.5x8.1%AU$8.4b
DRR Deterra Royalties
13.2x-6.1%AU$2.0b

Price-To-Earnings vs Peers: DRR is good value based on its Price-To-Earnings Ratio (13.2x) compared to the peer average (13.6x).

Price to Earnings Ratio vs Industry

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

10 CompaniesPrice / EarningsEstimated GrowthMarket Cap
KCN Kingsgate Consolidated
1.7x-13.3%US$206.77m
RHI Red Hill Minerals
1.7xn/aUS$164.30m
GRR Grange Resources
2.4xn/aUS$158.33m
PTN Patronus Resources
1.9xn/aUS$50.91m
DRR 13.2xIndustry Avg. 13.1xNo. of Companies12PE01224364860+
10 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: DRR is expensive based on its Price-To-Earnings Ratio (13.2x) compared to the Australian Metals and Mining industry average (13x).

Price to Earnings Ratio vs Fair Ratio

What is DRR'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.

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

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

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 DRR forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentAU$3.85
AU$4.45
+15.5%
7.8%AU$5.00AU$3.90n/a11
Dec ’25AU$3.74
AU$4.44
+18.6%
9.8%AU$5.30AU$3.80n/a11
Nov ’25AU$3.76
AU$4.44
+18.0%
9.8%AU$5.30AU$3.80n/a11
Oct ’25AU$4.08
AU$4.44
+8.8%
8.5%AU$5.00AU$3.80n/a11
Sep ’25AU$3.68
AU$4.41
+20.1%
8.8%AU$5.00AU$3.75n/a11
Aug ’25AU$3.99
AU$4.49
+12.6%
10.0%AU$5.30AU$3.70n/a11
Jul ’25AU$4.02
AU$4.53
+12.7%
10.3%AU$5.30AU$3.70n/a11
Jun ’25AU$4.61
AU$4.89
+6.0%
7.8%AU$5.60AU$4.20n/a12
May ’25AU$4.90
AU$4.89
-0.3%
7.8%AU$5.60AU$4.20n/a12
Apr ’25AU$4.90
AU$4.95
+1.1%
7.1%AU$5.60AU$4.39n/a12
Mar ’25AU$5.06
AU$4.96
-2.0%
6.5%AU$5.60AU$4.39n/a12
Feb ’25AU$5.35
AU$5.06
-5.3%
5.8%AU$5.65AU$4.40n/a11
Jan ’25AU$5.25
AU$5.00
-4.8%
6.6%AU$5.65AU$4.20n/a11
Dec ’24AU$4.97
AU$4.85
-2.4%
7.9%AU$5.50AU$4.02AU$3.7412
Nov ’24AU$4.68
AU$4.79
+2.3%
7.8%AU$5.50AU$4.02AU$3.7612
Oct ’24AU$4.79
AU$4.64
-3.0%
10.3%AU$5.50AU$3.90AU$4.0812
Sep ’24AU$4.51
AU$4.54
+0.6%
8.2%AU$5.00AU$3.90AU$3.6812
Aug ’24AU$4.75
AU$4.58
-3.6%
7.9%AU$5.00AU$3.90AU$3.9912
Jul ’24AU$4.60
AU$4.60
-0.05%
8.5%AU$5.10AU$3.90AU$4.0212
Jun ’24AU$4.37
AU$4.69
+7.3%
8.4%AU$5.10AU$3.90AU$4.6112
May ’24AU$4.69
AU$4.80
+2.4%
7.2%AU$5.10AU$3.90AU$4.9011
Apr ’24AU$4.81
AU$4.75
-1.2%
8.0%AU$5.25AU$3.90AU$4.9011
Mar ’24AU$4.53
AU$4.80
+6.0%
9.5%AU$5.63AU$3.90AU$5.0612
Feb ’24AU$4.91
AU$4.80
-2.3%
9.7%AU$5.63AU$3.90AU$5.3513
Jan ’24AU$4.60
AU$4.79
+4.1%
11.2%AU$5.70AU$3.80AU$5.2513
Dec ’23AU$4.74
AU$4.69
-1.0%
11.5%AU$5.70AU$3.80AU$4.9713

Analyst Forecast: Target price is less than 20% higher than the current share price.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/27 17:51
End of Day Share Price 2024/12/27 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

Deterra Royalties Limited is covered by 23 analysts. 11 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Daniel MorganBarrenjoey Markets Pty Limited
Glyn LawcockBarrenjoey Markets Pty Limited
Dale KoendersBarrenjoey Markets Pty Limited