Pilbara Minerals Limited

CHIA:PLS Stock Report

Market Cap: AU$8.4b

Pilbara Minerals Valuation

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

Valuation Score

1/6

Valuation Score 1/6

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

Below Fair Value: PLS (A$2.77) is trading above our estimate of fair value (A$0.59)

Significantly Below Fair Value: PLS is trading above our estimate of fair value.

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for PLS. This is calculated by dividing PLS's market cap by their current earnings.
What is PLS's PE Ratio?
PE Ratio32.8x
EarningsAU$256.88m
Market CapAU$8.43b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for PLS vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average40.6x
NIC Nickel Industries
25.3x49.7%AU$3.9b
MIN Mineral Resources
52.8x39.6%AU$6.6b
LYC Lynas Rare Earths
76x42.7%AU$6.4b
ILU Iluka Resources
8.4x5.5%AU$2.3b
PLS Pilbara Minerals
32.8x25.8%AU$8.4b

Price-To-Earnings vs Peers: PLS is good value based on its Price-To-Earnings Ratio (32.8x) compared to the peer average (40.6x).

Price to Earnings Ratio vs Industry

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

9 CompaniesPrice / EarningsEstimated GrowthMarket Cap
KCN Kingsgate Consolidated
1.7x-13.3%US$225.14m
GRR Grange Resources
2.6xn/aUS$181.06m
RHI Red Hill Minerals
1.8xn/aUS$179.75m
PTN Patronus Resources
2.4xn/aUS$68.31m
PLS 32.8xIndustry Avg. 11.9xNo. of Companies13PE01224364860+
9 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: PLS is expensive based on its Price-To-Earnings Ratio (32.8x) compared to the Australian Metals and Mining industry average (11.9x).

Price to Earnings Ratio vs Fair Ratio

What is PLS'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.

PLS PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio32.8x
Fair PE Ratio27.7x

Price-To-Earnings vs Fair Ratio: PLS is expensive based on its Price-To-Earnings Ratio (32.8x) compared to the estimated Fair Price-To-Earnings Ratio (27.7x).

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 PLS forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentAU$2.77
AU$3.09
+11.7%
14.2%AU$4.00AU$2.35n/a14
Nov ’25AU$2.85
AU$3.09
+8.5%
14.2%AU$4.00AU$2.35n/a14
Oct ’25AU$3.28
AU$3.15
-3.9%
17.1%AU$4.00AU$2.00n/a14
Sep ’25AU$2.97
AU$3.28
+10.4%
19.3%AU$4.59AU$2.20n/a15
Aug ’25AU$3.05
AU$3.25
+6.6%
18.2%AU$4.59AU$2.40n/a18
Jul ’25AU$3.08
AU$3.46
+12.2%
16.3%AU$4.59AU$2.50n/a18
Jun ’25AU$3.78
AU$3.77
-0.4%
14.5%AU$4.59AU$2.70n/a18
May ’25AU$4.08
AU$3.76
-7.8%
14.5%AU$4.59AU$2.70n/a18
Apr ’25AU$3.84
AU$3.74
-2.5%
14.3%AU$4.59AU$2.60n/a18
Mar ’25AU$4.38
AU$3.72
-15.1%
15.9%AU$4.59AU$2.50n/a18
Feb ’25AU$3.45
AU$3.72
+7.9%
14.6%AU$4.60AU$2.75n/a17
Jan ’25AU$3.95
AU$4.08
+3.5%
19.8%AU$6.12AU$2.85n/a18
Dec ’24AU$3.62
AU$4.42
+22.0%
23.1%AU$7.10AU$3.05n/a17
Nov ’24AU$3.62
AU$4.55
+25.6%
20.7%AU$7.10AU$3.15AU$2.8517
Oct ’24AU$4.29
AU$5.04
+17.6%
18.1%AU$7.10AU$3.45AU$3.2817
Sep ’24AU$4.70
AU$5.09
+8.3%
17.8%AU$7.30AU$3.50AU$2.9717
Aug ’24AU$4.87
AU$5.14
+5.6%
18.7%AU$7.30AU$3.10AU$3.0517
Jul ’24AU$4.90
AU$4.83
-1.5%
20.7%AU$7.30AU$3.00AU$3.0817
Jun ’24AU$4.31
AU$4.55
+5.6%
24.1%AU$7.70AU$3.00AU$3.7816
May ’24AU$4.10
AU$4.54
+10.8%
24.0%AU$7.70AU$3.00AU$4.0816
Apr ’24AU$3.95
AU$4.96
+25.5%
22.3%AU$7.70AU$3.10AU$3.8414
Mar ’24AU$4.23
AU$4.78
+13.1%
24.6%AU$7.70AU$3.01AU$4.3814
Feb ’24AU$4.79
AU$4.80
+0.2%
23.5%AU$7.50AU$3.01AU$3.4514
Jan ’24AU$3.77
AU$4.46
+18.4%
27.7%AU$7.50AU$2.60AU$3.9514
Dec ’23AU$4.75
AU$4.72
-0.7%
29.5%AU$7.70AU$2.60AU$3.6212
Nov ’23AU$5.28
AU$4.32
-18.3%
25.2%AU$5.90AU$2.60AU$3.6210

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

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