QPM Energy Valuation

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

Below Fair Value: QPM (A$0.04) is trading below our estimate of fair value (A$1)

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

Key Valuation Metric

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

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

The above table shows the Price to Sales ratio for QPM. This is calculated by dividing QPM's market cap by their current revenue.
What is QPM's PS Ratio?
PS Ratio	1x
Sales	AU$106.71m
Market Cap	AU$108.41m

QPM 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	1.3x
Enterprise Value/EBITDA	-263.8x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for QPM 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	25.6x
MRL Mayur Resources	60.6x	n/a	AU$121.5m
STA Strandline Resources	2.3x	18.6%	AU$138.9m
HGO Hillgrove Resources	2.9x	22.4%	AU$115.3m
AZL Arizona Lithium	36.4x	n/a	AU$62.6m
QPM QPM Energy	1x	19.2%	AU$108.4m

Price-To-Sales vs Peers: QPM is good value based on its Price-To-Sales Ratio (1x) compared to the peer average (25.6x).

Price to Sales Ratio vs Industry

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

125 Companies	Price / Sales	Estimated Growth	Market Cap
Industry Avg.	61.1x	3.1%
QPM QPM Energy	1x	19.2%	US$70.25m
BHP BHP Group	2.3x	-3.1%	US$130.75b
FMG Fortescue	2x	-5.6%	US$37.17b

125 Companies		Estimated Growth	Market Cap
Industry Avg.	61.1x	10.7%
QPM QPM Energy	1x	112.6%	US$70.25m

No more companies

Price-To-Sales vs Industry: QPM is good value based on its Price-To-Sales Ratio (1x) compared to the Australian Metals and Mining industry average (61.1x).

Price to Sales Ratio vs Fair Ratio

What is QPM'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.

QPM PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	1x
Fair PS Ratio	1.9x

Price-To-Sales vs Fair Ratio: QPM is good value based on its Price-To-Sales Ratio (1x) compared to the estimated Fair Price-To-Sales Ratio (1.9x).

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.

Discover undervalued companies

Capral

AU$165.0m

Manufactures, markets, and distributes fabricated and semi-fabricated aluminum related products in Australia.

CAA

AU$9.28

6.7%

Nufarm

AU$1.5b

Develops, manufactures, and sells crop protection solutions and seed technologies in Europe, the Middle East, Africa, North America, and the Asia Pacific.

NUF

AU$3.87

-5.6%

-17.1%

Aurelia Metals

AU$296.0m

Engages in the exploration and production of mineral properties in Australia.

AMI

AU$0.18

5.9%

63.6%