Altius Minerals (TSX:ALS) Valuation Check After Strong 3‑Month and 1‑Year Share Price Gains

Altius Minerals (TSX:ALS) has quietly turned into a strong long term performer, with the stock up around 21% over the past 3 months and roughly 49% over the past year.

See our latest analysis for Altius Minerals.

With the share price now at $39.57, that strong 90 day share price return and standout five year total shareholder return suggest momentum is still building as investors reassess Altius Minerals growth prospects and risk profile.

If Altius has you rethinking what sustained compounding can look like, it might be worth widening the lens and exploring fast growing stocks with high insider ownership.

With shares trading near recent highs and only a small gap to analyst targets, the key question now is whether Altius Minerals is still flying under the radar or if the market is already pricing in its next leg of growth?

Price-to-Earnings of 5.1x: Is it justified?

Altius Minerals current price to earnings ratio of 5.1 times, against a CA$39.57 share price, points to the market assigning a clear value discount versus peers.

The price to earnings multiple compares what investors pay for each dollar of current earnings. It is a key lens for a mature royalty and mining linked business where profits and cash generation matter more than rapid top line expansion.

In Altius case, the market is paying far less for its earnings than for the broader Canadian market, where the average price to earnings ratio sits at 16.4 times. It is also less than the Canadian Metals and Mining industry on 21.4 times. This gap suggests investors are still skeptical about the durability of recent profit growth, despite an outstanding 42.1 percent return on equity and a fair price to earnings level of 5.3 times that the market could ultimately gravitate toward.

On a relative basis, Altius trades at a steep discount, with its 5.1 times earnings multiple versus a 29.8 times peer average. This underscores how conservatively its profit stream is being valued right now.

Explore the SWS fair ratio for Altius Minerals

Result: Price-to-Earnings of 5.1x (UNDERVALUED)

However, investors still face risks from volatile commodity prices and the possibility that recent earnings strength proves cyclical rather than sustainably repeatable.

Find out about the key risks to this Altius Minerals narrative.

Another View Using the SWS DCF Model

While the low price to earnings ratio hints at value, the SWS DCF model sends a very different signal. It suggests Altius Minerals fair value is closer to CA$12.22, well below the current CA$39.57 share price and pointing to a stock that screens as overvalued on cash flow assumptions.

Look into how the SWS DCF model arrives at its fair value.

If earnings multiples indicate a low valuation but long term cash flow modelling indicates a higher valuation, which lens should investors trust as the cycle and royalty pipeline evolve?

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Altius Minerals for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 902 undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Build Your Own Altius Minerals Narrative

If you see the numbers differently or prefer to dig into the details yourself, you can build a fresh view in just minutes: Do it your way.

A great starting point for your Altius Minerals research is our analysis highlighting 4 key rewards and 3 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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