South32 Limited

DB:32Z Stock Report

Market Cap: €10.4b

South32 Valuation

Is 32Z undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 32Z when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 32Z (€2.3) is trading above our estimate of fair value (€0.12)

Significantly Below Fair Value: 32Z is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 32Z?

Key metric: As 32Z is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for 32Z. This is calculated by dividing 32Z's market cap by their current revenue.
What is 32Z's PS Ratio?
PS Ratio2x
SalesUS$5.59b
Market CapUS$11.02b

Price to Sales Ratio vs Peers

How does 32Z's PS Ratio compare to its peers?

The above table shows the PS ratio for 32Z vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average0.6x
1COV Covestro
0.8x4.3%€10.8b
EVK Evonik Industries
0.5x2.2%€8.1b
NDA Aurubis
0.2x4.2%€3.3b
2NF Syensqo
1.1x4.2%€7.4b
32Z South32
2x9.4%€17.0b

Price-To-Sales vs Peers: 32Z is expensive based on its Price-To-Sales Ratio (2x) compared to the peer average (0.6x).

Price to Sales Ratio vs Industry

How does 32Z's PS Ratio compare vs other companies in the European Metals and Mining Industry?

35 CompaniesPrice / SalesEstimated GrowthMarket Cap
32Z 2.0xIndustry Avg. 0.7xNo. of Companies35PS00.81.62.43.24+
35 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: 32Z is expensive based on its Price-To-Sales Ratio (2x) compared to the European Metals and Mining industry average (0.7x).

Price to Sales Ratio vs Fair Ratio

What is 32Z's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

32Z PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio2x
Fair PS Ratio1.3x

Price-To-Sales vs Fair Ratio: 32Z is expensive based on its Price-To-Sales Ratio (2x) compared to the estimated Fair Price-To-Sales Ratio (1.3x).

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 32Z forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€2.30
€2.36
+2.6%
14.0%€2.89€1.47n/a14
Nov ’25€2.20
€2.31
+4.8%
14.7%€2.80€1.38n/a14
Oct ’25€2.26
€2.21
-2.3%
15.1%€2.73€1.37n/a14
Sep ’25€1.90
€2.22
+16.8%
15.6%€2.77€1.37n/a15
Aug ’25€1.87
€2.31
+23.7%
11.3%€2.83€1.87n/a14
Jul ’25€2.31
€2.53
+9.8%
9.7%€2.96€2.00n/a14
Jun ’25€2.41
€2.39
-0.7%
10.4%€2.82€1.98n/a14
May ’25€2.15
€2.30
+7.1%
9.3%€2.86€2.01n/a14
Apr ’25€1.80
€2.26
+25.7%
9.4%€2.82€1.99n/a14
Mar ’25€1.79
€2.27
+26.9%
8.9%€2.82€2.04n/a13
Feb ’25€2.00
€2.33
+16.7%
9.8%€2.88€1.88n/a13
Jan ’25€2.01
€2.37
+18.3%
10.9%€2.94€1.86n/a13
Dec ’24€1.89
€2.41
+28.0%
11.7%€2.94€1.86n/a13
Nov ’24€1.99
€2.48
+24.8%
12.4%€3.12€1.92€2.2013
Oct ’24€2.07
€2.53
+22.2%
11.8%€3.16€2.06€2.2612
Sep ’24€2.05
€2.46
+19.8%
11.1%€3.05€2.06€1.9012
Aug ’24€2.34
€2.63
+12.7%
9.6%€3.18€2.27€1.8712
Jul ’24€2.29
€2.89
+26.5%
9.3%€3.46€2.60€2.3112
Jun ’24€2.34
€3.04
+30.1%
8.7%€3.61€2.75€2.4112
May ’24€2.51
€2.97
+18.6%
8.7%€3.50€2.62€2.1514
Apr ’24€2.71
€3.16
+16.6%
8.4%€3.65€2.80€1.8015
Mar ’24€2.84
€3.24
+14.2%
8.0%€3.73€2.87€1.7916
Feb ’24€2.97
€3.18
+7.3%
8.4%€3.63€2.76€2.0017
Jan ’24€2.53
€2.98
+17.8%
13.3%€3.76€2.19€2.0117
Dec ’23€2.75
€2.93
+6.6%
13.6%€3.79€2.20€1.8917
Nov ’23€2.37
€3.05
+28.7%
14.5%€3.86€2.28€1.9917

Analyst Forecast: Target price is less than 20% higher than the current share price.

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