Piedmont Lithium Valuation

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

PLL (A$0.18) is trading below our estimate of [[fair value]] (A$2.09)

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

Below Fair Value: PLL (A$0.18) is trading below our estimate of fair value (A$2.09)

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

Key Valuation Metric

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

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

The above table shows the Price to Sales ratio for PLL. This is calculated by dividing PLL's market cap by their current revenue.
What is PLL's PS Ratio?
PS Ratio	4.8x
Sales	US$46.98m
Market Cap	US$227.34m

PLL 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	3.9x
Enterprise Value/EBITDA	-3.5x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for PLL 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	16.7x
DVP Develop Global	3.6x	56.7%	AU$524.1m
CXO Core Lithium	1x	-101.0%	AU$192.9m
SYA Sayona Mining	1.6x	5.1%	AU$329.4m
MRL Mayur Resources	60.6x	n/a	AU$121.5m
PLL Piedmont Lithium	4.8x	24.0%	AU$349.9m

Price-To-Sales vs Peers: PLL is good value based on its Price-To-Sales Ratio (4.8x) compared to the peer average (16.7x).

Price to Sales Ratio vs Industry

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

124 Companies	Price / Sales	Estimated Growth	Market Cap
Industry Avg.	61.1x	3.1%
PLL Piedmont Lithium	4.8x	24.0%	US$227.34m
BHP BHP Group	2.4x	-3.1%	US$132.07b
FMG Fortescue	2.1x	-5.6%	US$37.38b

124 Companies		Estimated Growth	Market Cap
Industry Avg.	61.1x	10.6%
PLL Piedmont Lithium	4.8x	105.0%	US$227.34m

No more companies

Price-To-Sales vs Industry: PLL is good value based on its Price-To-Sales Ratio (4.8x) compared to the Australian Metals and Mining industry average (61.1x).

Price to Sales Ratio vs Fair Ratio

What is PLL'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.

PLL PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	4.8x
Fair PS Ratio	0.4x

Price-To-Sales vs Fair Ratio: PLL is expensive based on its Price-To-Sales Ratio (4.8x) compared to the estimated Fair Price-To-Sales Ratio (0.4x).

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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