Reach Resources Valuation

Is RR1 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

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 RR1 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: Insufficient data to calculate RR1's fair value for valuation analysis.

Significantly Below Fair Value: Insufficient data to calculate RR1's fair value for valuation analysis.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for RR1?

Key metric: As RR1 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for RR1. This is calculated by dividing RR1's market cap by their current earnings.
What is RR1's PE Ratio?
PE Ratio	3.8x
Earnings	AU$1.94m
Market Cap	AU$7.43m

RR1 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	0.4x
Enterprise Value/EBITDA	0.7x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

How does RR1's PE Ratio compare to its peers?

The above table shows the PE ratio for RR1 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	22.5x
AWJ Auric Mining	20.7x	n/a	AU$48.3m
ZAG Zuleika Gold	59.8x	n/a	AU$11.9m
GUL Gullewa	5.7x	n/a	AU$12.6m
SLS Solstice Minerals	3.6x	n/a	AU$16.6m
RR1 Reach Resources	3.8x	n/a	AU$7.4m

Price-To-Earnings vs Peers: RR1 is good value based on its Price-To-Earnings Ratio (3.8x) compared to the peer average (22.5x).

Price to Earnings Ratio vs Industry

How does RR1's PE Ratio compare vs other companies in the AU Metals and Mining Industry?

9 Companies	Price / Earnings	Estimated Growth	Market Cap
KCN Kingsgate Consolidated	1.8x	-13.3%	US$239.03m
GRR Grange Resources	2.8x	n/a	US$192.06m
RHI Red Hill Minerals	1.7x	n/a	US$169.02m
PTN Patronus Resources	2.3x	n/a	US$66.07m

9 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: RR1 is good value based on its Price-To-Earnings Ratio (3.8x) compared to the Australian Metals and Mining industry average (12x).

Price to Earnings Ratio vs Fair Ratio

What is RR1'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.

RR1 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	3.8x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate RR1's Price-To-Earnings 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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