Foraco International Valuation

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

Valuation Score

6/6

Valuation Score 6/6

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

Below Fair Value: FAR (CA$2.1) is trading below our estimate of fair value (CA$4.34)

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


Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for FAR. This is calculated by dividing FAR's market cap by their current earnings.
What is FAR's PE Ratio?
PE Ratio5.5x
EarningsUS$26.87m
Market CapUS$148.77m

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for FAR vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average18.6x
LA Los Andes Copper
38.6xn/aCA$225.7m
GEO Geodrill
11.7xn/aCA$136.3m
ARG Amerigo Resources
9.9x24.8%CA$286.8m
LITH Lithium Chile
14.3xn/aCA$125.9m
FAR Foraco International
5.5x27.7%CA$207.8m

Price-To-Earnings vs Peers: FAR is good value based on its Price-To-Earnings Ratio (5.5x) compared to the peer average (18.6x).


Price to Earnings Ratio vs Industry

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

42 CompaniesPrice / EarningsEstimated GrowthMarket Cap
IMG IAMGOLD
4.5x-11.3%US$3.19b
SLI Standard Lithium
2.8xn/aUS$300.54m
THX Thor Explorations
3.9x9.9%US$136.21m
APM Andean Precious Metals
2.3x-42.9%US$126.18m
FAR 5.5xIndustry Avg. 13.5xNo. of Companies42PE020406080100+
42 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: FAR is good value based on its Price-To-Earnings Ratio (5.5x) compared to the Canadian Metals and Mining industry average (13.5x).


Price to Earnings Ratio vs Fair Ratio

What is FAR'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.

FAR PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio5.5x
Fair PE Ratio17.7x

Price-To-Earnings vs Fair Ratio: FAR is good value based on its Price-To-Earnings Ratio (5.5x) compared to the estimated Fair Price-To-Earnings Ratio (17.7x).


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst FAR forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentCA$2.10
CA$4.35
+107.1%
10.6%CA$5.00CA$4.00n/a3
Nov ’25CA$2.25
CA$4.35
+93.3%
10.6%CA$5.00CA$4.00n/a3
Oct ’25CA$2.22
CA$4.68
+111.0%
9.6%CA$5.00CA$4.05n/a3
Sep ’25CA$2.32
CA$4.68
+101.9%
9.6%CA$5.00CA$4.05n/a3
Aug ’25CA$2.74
CA$4.53
+65.1%
10.5%CA$5.00CA$4.05n/a2
Jul ’25CA$2.36
CA$5.03
+112.9%
19.4%CA$6.00CA$4.05n/a2
Jun ’25CA$2.76
CA$5.03
+82.1%
19.4%CA$6.00CA$4.05n/a2
May ’25CA$2.90
CA$5.03
+73.3%
19.4%CA$6.00CA$4.05n/a2
Apr ’25CA$2.99
CA$5.13
+71.4%
17.1%CA$6.00CA$4.25n/a2
Mar ’25CA$2.60
CA$5.13
+97.1%
17.1%CA$6.00CA$4.25n/a2

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


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