Lunnon Metals Limited

CHIA:LM8 Stock Report

Market Cap: AU$47.4m

Lunnon Metals Valuation

Is LM8 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-Book vs Peers

  • Price-To-Book vs Industry

  • Price-To-Book vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of LM8 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: LM8 (A$0.21) is trading below our estimate of fair value (A$1.66)

Significantly Below Fair Value: LM8 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for LM8?

Key metric: As LM8 barely has revenue we use its Price-To-Book Ratio for relative valuation analysis.

The above table shows the Price to Book ratio for LM8. This is calculated by dividing LM8's market cap by their current book value.
What is LM8's PB Ratio?
PB Ratio1x
BookAU$46.36m
Market CapAU$47.40m

Price to Book Ratio vs Peers

How does LM8's PB Ratio compare to its peers?

The above table shows the PB ratio for LM8 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PBEstimated GrowthMarket Cap
Peer Average1.6x
PRL Province Resources
2.4xn/aAU$48.4m
FEG Far East Gold
1.8xn/aAU$52.7m
MYE Metarock Group
0.7xn/aAU$54.1m
AGR Aguia Resources
1.4xn/aAU$54.3m
LM8 Lunnon Metals
1x56.0%AU$47.4m

Price-To-Book vs Peers: LM8 is good value based on its Price-To-Book Ratio (1x) compared to the peer average (1.3x).

Price to Book Ratio vs Industry

How does LM8's PB Ratio compare vs other companies in the AU Metals and Mining Industry?

15 CompaniesPrice / BookEstimated GrowthMarket Cap
HAS Hastings Technology Metals
0.2x12.6%US$32.92m
JRV Jervois Global
0.1xn/aUS$21.09m
ADN Andromeda Metals
0.2x25.5%US$15.59m
CTO Citigold
0.2xn/aUS$7.80m
LM8 1.0xIndustry Avg. 1.1xNo. of Companies88PB00.81.62.43.24+
15 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Book vs Industry: LM8 is good value based on its Price-To-Book Ratio (1x) compared to the Australian Metals and Mining industry average (1.1x).

Price to Book Ratio vs Fair Ratio

What is LM8's PB Ratio compared to its Fair PB Ratio? This is the expected PB Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

LM8 PB Ratio vs Fair Ratio.
Fair Ratio
Current PB Ratio1x
Fair PB Ration/a

Price-To-Book vs Fair Ratio: Insufficient data to calculate LM8's Price-To-Book 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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