Red Metal Valuation

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

Below Fair Value: Insufficient data to calculate RDM's fair value for valuation analysis.

Significantly Below Fair Value: Insufficient data to calculate RDM's fair value for valuation analysis.

Key Valuation Metric

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

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

The above table shows the Price to Sales ratio for RDM. This is calculated by dividing RDM's market cap by their current revenue.
What is RDM's PS Ratio?
PS Ratio	20.7x
Sales	AU$1.83m
Market Cap	AU$37.76m

RDM 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	17.2x
Enterprise Value/EBITDA	-4x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for RDM 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	4.1x
MRC Mineral Commodities	0.6x	n/a	AU$25.6m
TNC True North Copper	12.9x	n/a	AU$30.9m
IMA Image Resources	2.7x	n/a	AU$101.0m
MGL Magontec	0.2x	9.4%	AU$17.1m
RDM Red Metal	20.7x	n/a	AU$37.8m

Price-To-Sales vs Peers: RDM is expensive based on its Price-To-Sales Ratio (20.7x) compared to the peer average (4.1x).

Price to Sales Ratio vs Industry

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

124 Companies	Price / Sales	Estimated Growth	Market Cap
BHP BHP Group	2.3x	-3.1%	US$130.75b
FMG Fortescue	2x	-5.6%	US$37.17b
NCM Newcrest Mining	3x	5.2%	US$13.37b
NST Northern Star Resources	4.1x	8.5%	US$13.12b

124 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Sales vs Industry: RDM is good value based on its Price-To-Sales Ratio (20.7x) compared to the Australian Metals and Mining industry average (61.1x).

Price to Sales Ratio vs Fair Ratio

What is RDM'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.

RDM PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	20.7x
Fair PS Ratio	n/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate RDM's Price-To-Sales 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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