Amerigo Resources Valuation

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

Below Fair Value: ARG (CA$1.73) is trading below our estimate of fair value (CA$8.79)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for ARG. This is calculated by dividing ARG's market cap by their current earnings.
What is ARG's PE Ratio?
PE Ratio	9.9x
Earnings	US$20.70m
Market Cap	US$205.16m

ARG 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	1.1x
Enterprise Value/EBITDA	3.6x
PEG Ratio	0.4x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for ARG 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	15.4x
QRC Queen's Road Capital Investment	15x	n/a	CA$377.6m
LA Los Andes Copper	38.3x	n/a	CA$236.3m
FAR Foraco International	5.5x	27.7%	CA$207.8m
SLI Standard Lithium	2.7x	n/a	CA$453.4m
ARG Amerigo Resources	9.9x	24.8%	CA$286.8m

Price-To-Earnings vs Peers: ARG is good value based on its Price-To-Earnings Ratio (9.9x) compared to the peer average (15.4x).

Price to Earnings Ratio vs Industry

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

34 Companies	Price / Earnings	Estimated Growth	Market Cap
SLI Standard Lithium	2.7x	n/a	US$324.28m
APM Andean Precious Metals	2.3x	-42.9%	US$134.61m
STGO Steppe Gold	2.1x	n/a	US$117.54m
DC.A Dundee	2.4x	n/a	US$113.81m

34 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: ARG is good value based on its Price-To-Earnings Ratio (9.9x) compared to the Canadian Metals and Mining industry average (13.5x).

Price to Earnings Ratio vs Fair Ratio

What is ARG'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.

ARG PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	9.9x
Fair PE Ratio	16.5x

Price-To-Earnings vs Fair Ratio: ARG is good value based on its Price-To-Earnings Ratio (9.9x) compared to the estimated Fair Price-To-Earnings Ratio (16.5x).

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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