Liontown Resources Limited

DB:LIS Stock Report

Market Cap: €929.2m

Liontown Resources Valuation

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

Valuation Score

2/6

Valuation Score 2/6

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

Discounted Cash Flow
Simply Wall St
€4.06
Fair Value
90.8% undervalued intrinsic discount
13
Number of Analysts

Below Fair Value: LIS (€0.38) is trading below our estimate of fair value (€4.06)

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

Key Valuation Metric

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

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

The above table shows the Price to Sales ratio for LIS. This is calculated by dividing LIS's market cap by their current revenue.
What is LIS's PS Ratio?
PS Ratio16x
SalesAU$100.41m
Market CapAU$1.60b

Price to Sales Ratio vs Peers

How does LIS's PS Ratio compare to its peers?

The above table shows the PS ratio for LIS vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average3x
SGML Sigma Lithium
9.7x37.6%US$1.3b
SZG Salzgitter
0.1x-0.6%€1.4b
ACT AlzChem Group
1.7x7.1%€935.9m
STO3 Sto SE KGaA
0.5x2.5%€899.6m
LIS Liontown Resources
16x38.8%€1.6b

Price-To-Sales vs Peers: LIS is expensive based on its Price-To-Sales Ratio (16x) compared to the peer average (3x).

Price to Sales Ratio vs Industry

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

44 CompaniesPrice / SalesEstimated GrowthMarket Cap
LIS 16.0xIndustry Avg. 0.7xNo. of Companies44PS012345+
44 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: LIS is expensive based on its Price-To-Sales Ratio (16x) compared to the European Metals and Mining industry average (0.7x).

Price to Sales Ratio vs Fair Ratio

What is LIS'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.

LIS PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio16x
Fair PS Ratio3.6x

Price-To-Sales vs Fair Ratio: LIS is expensive based on its Price-To-Sales Ratio (16x) compared to the estimated Fair Price-To-Sales Ratio (3.6x).

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 LIS forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Currentn/a
€0.44
0%
26.2%€0.73€0.29n/a13
Mar ’26€0.29
€0.46
+60.7%
30.0%€0.85€0.30n/a13
Feb ’26€0.38
€0.45
+17.6%
32.2%€0.84€0.30n/a13
Jan ’26€0.32
€0.50
+58.8%
36.1%€0.84€0.27n/a13
Dec ’25€0.46
€0.52
+12.2%
34.9%€0.86€0.28n/a13
Nov ’25€0.51
€0.57
+12.4%
36.8%€1.06€0.27n/a13
Oct ’25€0.54
€0.67
+23.4%
34.3%€1.18€0.40n/a13
Sep ’25€0.45
€0.68
+50.6%
29.8%€1.15€0.39n/a13
Aug ’25€0.59
€0.69
+16.0%
28.5%€1.15€0.39n/a13
Jul ’25€0.54
€0.75
+38.5%
27.7%€1.15€0.43n/a12
Jun ’25€0.78
€0.81
+3.8%
23.5%€1.14€0.43n/a12
May ’25€0.74
€0.79
+7.1%
24.5%€1.12€0.42n/a12
Apr ’25€0.69
€0.80
+15.2%
24.9%€1.15€0.42n/a12
Mar ’25€0.76
€0.65
-14.0%
22.8%€0.97€0.42€0.2912
Feb ’25€0.59
€0.73
+24.4%
33.4%€1.40€0.46€0.3812
Jan ’25€1.00
€1.08
+7.9%
26.3%€1.69€0.62€0.3212
Dec ’24€0.81
€1.18
+46.5%
24.8%€1.65€0.78€0.4611
Nov ’24€0.97
€1.22
+25.5%
22.7%€1.65€0.78€0.5111
Oct ’24€1.83
€1.69
-7.6%
19.6%€2.04€0.82€0.549
Sep ’24€1.53
€1.57
+2.2%
18.8%€1.99€0.83€0.4510
Aug ’24€1.64
€1.64
+0.4%
17.3%€2.06€0.92€0.5910
Jul ’24€1.70
€1.64
-3.5%
17.3%€2.06€0.92€0.5410
Jun ’24€1.70
€1.64
-3.3%
17.3%€2.06€0.92€0.7810
May ’24€1.69
€1.60
-5.6%
18.3%€2.05€0.92€0.749
Apr ’24€1.56
€1.53
-1.7%
21.2%€2.06€0.92€0.699
Mar ’24€0.91
€1.22
+34.5%
21.8%€1.79€0.95€0.7610
Analyst Price Target
Consensus Narrative from 13 Analysts
€0.43
Fair Value
12.4% undervalued intrinsic discount
13
Number of Analysts

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

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/03/22 07:00
End of Day Share Price 2025/03/14 00:00
Earnings2024/12/31
Annual Earnings2024/06/30

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

Liontown Resources Limited is covered by 20 analysts. 13 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Glyn LawcockBarrenjoey Markets Pty Limited
Josh KannourakisBarrenjoey Markets Pty Limited
Aryan NoroziBarrenjoey Markets Pty Limited