Spartan Resources Valuation

Is SPR 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-Book vs Peers
Price-To-Book vs Industry
Price-To-Book vs Fair Ratio
Analyst Forecast

Share Price vs Fair Value

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

Below Fair Value: SPR (A$1.3) is trading below our estimate of fair value (A$11.11)

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

Key Valuation Metric

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

Key metric: As SPR is unprofitable and pre-revenue we use its Price-To-Book Ratio for relative valuation analysis.

The above table shows the Price to Book ratio for SPR. This is calculated by dividing SPR's market cap by their current book value.
What is SPR's PB Ratio?
PB Ratio	9.3x
Book	AU$157.01m
Market Cap	AU$1.46b

SPR 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	n/a
Enterprise Value/EBITDA	-54x
PEG Ratio	n/a

Price to Book Ratio vs Peers

How does SPR's PB Ratio compare to its peers?

The above table shows the PB ratio for SPR vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PB	Estimated Growth	Market Cap
Peer Average	1.3x
WAF West African Resources	1.8x	28.6%	AU$1.7b
SBM St Barbara	0.9x	75.2%	AU$303.4m
RSG Resolute Mining	0.9x	42.3%	AU$830.3m
RRL Regis Resources	1.4x	56.2%	AU$1.9b
SPR Spartan Resources	9.3x	104.8%	AU$1.5b

Price-To-Book vs Peers: SPR is expensive based on its Price-To-Book Ratio (9.3x) compared to the peer average (1.3x).

Price to Book Ratio vs Industry

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

16 Companies	Price / Book	Estimated Growth	Market Cap
HAS Hastings Technology Metals	0.2x	12.6%	US$32.13m
JRV Jervois Global	0.1x	n/a	US$17.47m
ADN Andromeda Metals	0.2x	25.5%	US$15.50m
LPD Lepidico	0.2x	96.5%	US$11.10m

16 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Book vs Industry: SPR is expensive based on its Price-To-Book Ratio (9.3x) compared to the Australian Metals and Mining industry average (1.1x).

Price to Book Ratio vs Fair Ratio

What is SPR's PB Ratio compared to its Fair PB Ratio? This is the expected PB Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

SPR PB Ratio vs Fair Ratio.
Fair Ratio
Current PB Ratio	9.3x
Fair PB Ratio	n/a

Price-To-Book vs Fair Ratio: Insufficient data to calculate SPR's Price-To-Book 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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