IGO Limited

CHIA:IGO Stock Report

Market Cap: AU$3.8b

IGO Valuation

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

Below Fair Value: IGO (A$4.96) is trading below our estimate of fair value (A$8.35)

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

Key Valuation Metric

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

Key metric: As IGO is barely profitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for IGO. This is calculated by dividing IGO's market cap by their current revenue.
What is IGO's PS Ratio?
PS Ratio4.5x
SalesAU$841.30m
Market CapAU$3.75b

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for IGO vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average4.6x
ILU Iluka Resources
1.9x14.0%AU$2.3b
MIN Mineral Resources
1.3x5.9%AU$6.6b
NIC Nickel Industries
1.4x17.0%AU$3.9b
LYC Lynas Rare Earths
13.9x32.4%AU$6.4b
IGO IGO
4.5x-57.5%AU$3.8b

Price-To-Sales vs Peers: IGO is good value based on its Price-To-Sales Ratio (4.5x) compared to the peer average (4.6x).

Price to Sales Ratio vs Industry

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

124 CompaniesPrice / SalesEstimated GrowthMarket Cap
Industry Avg.61.9x2.7%
IGO IGO
 4.5x-57.5%US$2.44b
BHP BHP Group
2.3x-4.1%US$131.63b
FMG Fortescue
2x-5.6%US$36.31b
IGO 4.5xIndustry Avg. 61.9xNo. of Companies123PS020406080100+
124 CompaniesEstimated GrowthMarket Cap
Industry Avg.61.9x10.7%
IGO IGO
 4.5x41.1%US$2.44b
No more companies

Price-To-Sales vs Industry: IGO is good value based on its Price-To-Sales Ratio (4.5x) compared to the Australian Metals and Mining industry average (61.9x).

Price to Sales Ratio vs Fair Ratio

What is IGO'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.

IGO PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio4.5x
Fair PS Ratio0.3x

Price-To-Sales vs Fair Ratio: IGO is expensive based on its Price-To-Sales Ratio (4.5x) compared to the estimated Fair Price-To-Sales Ratio (0.3x).

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 IGO forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentAU$4.96
AU$5.86
+18.0%
19.1%AU$8.28AU$4.00n/a16
Nov ’25AU$5.30
AU$5.86
+10.5%
19.1%AU$8.28AU$4.00n/a16
Oct ’25AU$5.73
AU$6.13
+7.0%
19.1%AU$8.50AU$4.60n/a16
Sep ’25AU$5.56
AU$6.19
+11.4%
19.0%AU$8.50AU$4.55n/a16
Aug ’25AU$5.61
AU$6.33
+12.9%
18.6%AU$8.50AU$4.60n/a16
Jul ’25AU$5.85
AU$7.29
+24.6%
18.1%AU$9.00AU$5.05n/a15
Jun ’25AU$6.97
AU$7.79
+11.8%
14.5%AU$9.82AU$6.00n/a15
May ’25AU$7.80
AU$7.79
-0.05%
14.5%AU$9.82AU$6.00n/a15
Apr ’25AU$7.04
AU$7.89
+12.0%
16.4%AU$10.50AU$5.50n/a15
Mar ’25AU$8.26
AU$8.04
-2.7%
14.3%AU$10.50AU$6.00n/a15
Feb ’25AU$7.22
AU$8.34
+15.6%
14.8%AU$10.50AU$6.00n/a15
Jan ’25AU$9.06
AU$10.23
+12.9%
18.9%AU$14.50AU$7.00n/a15
Dec ’24AU$8.40
AU$11.46
+36.4%
20.0%AU$16.00AU$8.00n/a15
Nov ’24AU$9.33
AU$12.74
+36.5%
21.0%AU$19.33AU$9.25AU$5.3015
Oct ’24AU$12.71
AU$14.76
+16.1%
13.3%AU$19.33AU$11.60AU$5.7315
Sep ’24AU$13.83
AU$15.08
+9.0%
11.7%AU$19.33AU$12.80AU$5.5615
Aug ’24AU$14.22
AU$15.43
+8.5%
11.5%AU$19.33AU$13.25AU$5.6114
Jul ’24AU$15.19
AU$16.28
+7.2%
11.1%AU$19.33AU$13.90AU$5.8514
Jun ’24AU$13.74
AU$15.81
+15.1%
16.0%AU$20.00AU$10.50AU$6.9714
May ’24AU$13.61
AU$15.71
+15.4%
15.9%AU$20.00AU$10.50AU$7.8015
Apr ’24AU$12.77
AU$15.90
+24.5%
14.5%AU$19.00AU$10.20AU$7.0414
Mar ’24AU$13.59
AU$16.26
+19.7%
13.8%AU$20.00AU$11.30AU$8.2615
Feb ’24AU$14.76
AU$15.89
+7.7%
16.6%AU$20.00AU$10.10AU$7.2216
Jan ’24AU$13.50
AU$16.20
+20.0%
16.3%AU$21.00AU$10.10AU$9.0616
Dec ’23AU$16.00
AU$16.16
+1.0%
16.3%AU$21.00AU$10.50AU$8.4015
Nov ’23AU$15.27
AU$15.44
+1.1%
15.4%AU$20.00AU$10.50AU$9.3313

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

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