Medallion Metals Valuation

Is MM8 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

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 MM8 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: MM8 (A$0.08) is trading below our estimate of fair value (A$6.89)

Significantly Below Fair Value: MM8 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for MM8?

Key metric: As MM8 is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for MM8. This is calculated by dividing MM8's market cap by their current revenue.
What is MM8's PS Ratio?
PS Ratio	17.6x
Sales	AU$1.86m
Market Cap	AU$32.64m

MM8 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	18.2x
Enterprise Value/EBITDA	-16.4x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does MM8's PS Ratio compare to its peers?

The above table shows the PS ratio for MM8 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PS	Estimated Growth	Market Cap
Peer Average	15.1x
KAU Kaiser Reef	1.6x	n/a	AU$40.2m
GWR GWR Group	28.7x	n/a	AU$26.7m
AXN Alliance Nickel	29.4x	n/a	AU$33.4m
WMC Wiluna Mining	0.7x	47.0%	AU$74.2m
MM8 Medallion Metals	17.6x	72.8%	AU$32.6m

Price-To-Sales vs Peers: MM8 is good value based on its Price-To-Sales Ratio (17.6x) compared to the peer average (20x).

Price to Sales Ratio vs Industry

How does MM8's PS Ratio compare vs other companies in the AU Metals and Mining Industry?

120 Companies	Price / Sales	Estimated Growth	Market Cap
BHP BHP Group	2.3x	-3.2%	US$132.56b
FMG Fortescue	2x	-5.6%	US$36.75b
NCM Newcrest Mining	3x	5.2%	US$13.37b
NST Northern Star Resources	4x	8.5%	US$13.15b

120 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Sales vs Industry: MM8 is good value based on its Price-To-Sales Ratio (17.6x) compared to the Australian Metals and Mining industry average (58.6x).

Price to Sales Ratio vs Fair Ratio

What is MM8'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.

MM8 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	17.6x
Fair PS Ratio	68.1x

Price-To-Sales vs Fair Ratio: MM8 is good value based on its Price-To-Sales Ratio (17.6x) compared to the estimated Fair Price-To-Sales Ratio (68.1x).

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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