Velocity Minerals Ltd.

TSXV:VLC Stock Report

Market Cap: CA$33.4m

Velocity Minerals Valuation

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

Valuation Score

1/6

Valuation Score 1/6

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

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

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

Key Valuation Metric

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

Key metric: As VLC 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 VLC. This is calculated by dividing VLC's market cap by their current book value.
What is VLC's PB Ratio?
PB Ratio1.4x
BookCA$23.59m
Market CapCA$33.37m

Price to Book Ratio vs Peers

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

The above table shows the PB ratio for VLC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PBEstimated GrowthMarket Cap
Peer Average14.5x
GPG Grande Portage Resources
1.3xn/aCA$32.3m
ARIC Awalé Resources
2.1xn/aCA$39.9m
RPX Red Pine Exploration
52.8xn/aCA$38.0m
BRW Brunswick Exploration
2xn/aCA$38.6m
VLC Velocity Minerals
1.4xn/aCA$33.4m

Price-To-Book vs Peers: VLC is good value based on its Price-To-Book Ratio (1.4x) compared to the peer average (14.5x).

Price to Book Ratio vs Industry

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

91 CompaniesPrice / BookEstimated GrowthMarket Cap
AOT Ascot Resources
0.3xn/aUS$90.60m
S Sherritt International
0.1xn/aUS$50.76m
WM Wallbridge Mining
0.2xn/aUS$46.88m
NCU Nevada Copper
0.1xn/aUS$31.56m
VLC 1.4xIndustry Avg. 1.4xNo. of Companies159PB01.22.43.64.86+
91 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Book vs Industry: VLC is expensive based on its Price-To-Book Ratio (1.4x) compared to the Canadian Metals and Mining industry average (1.4x).

Price to Book Ratio vs Fair Ratio

What is VLC'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.

VLC PB Ratio vs Fair Ratio.
Fair Ratio
Current PB Ratio1.4x
Fair PB Ration/a

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