Largo Inc.

DB:LR8 Stock Report

Market Cap: €133.3m

Largo Valuation

Is LR8 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 LR8 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: LR8 (€2.03) is trading below our estimate of fair value (€9)

Significantly Below Fair Value: LR8 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for LR8?

Key metric: As LR8 is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for LR8. This is calculated by dividing LR8's market cap by their current revenue.
What is LR8's PS Ratio?
PS Ratio0.9x
SalesUS$144.82m
Market CapUS$140.80m

Price to Sales Ratio vs Peers

How does LR8's PS Ratio compare to its peers?

The above table shows the PS ratio for LR8 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average0.6x
NTG Nabaltec
0.6x5.1%€126.7m
2HRA H&R GmbH KGaA
0.1x3.0%€128.4m
UZU Uzin Utz
0.5x4.3%€251.2m
BNN BRAIN Biotech
1.3x8.5%€71.2m
LR8 Largo
0.9x20.5%€197.5m

Price-To-Sales vs Peers: LR8 is expensive based on its Price-To-Sales Ratio (0.9x) compared to the peer average (0.6x).

Price to Sales Ratio vs Industry

How does LR8's PS Ratio compare vs other companies in the European Metals and Mining Industry?

35 CompaniesPrice / SalesEstimated GrowthMarket Cap
LR8 0.9xIndustry Avg. 0.7xNo. of Companies35PS00.81.62.43.24+
35 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: LR8 is expensive based on its Price-To-Sales Ratio (0.9x) compared to the European Metals and Mining industry average (0.7x).

Price to Sales Ratio vs Fair Ratio

What is LR8'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.

LR8 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.9x
Fair PS Ratio0.2x

Price-To-Sales vs Fair Ratio: LR8 is expensive based on its Price-To-Sales Ratio (0.9x) compared to the estimated Fair Price-To-Sales Ratio (0.2x).

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 LR8 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€2.03
€3.72
+83.6%
9.1%€4.06€3.38n/a2
Jun ’25€2.03
€3.59
+77.4%
8.8%€4.04€3.37n/a3
May ’25€1.42
€4.54
+219.4%
25.5%€6.13€3.41n/a3
Apr ’25€1.41
€4.76
+237.4%
23.3%€6.12€3.40n/a3
Mar ’25€1.63
€5.18
+217.5%
6.7%€5.52€4.83n/a2
Feb ’25€1.83
€6.34
+246.4%
28.1%€8.83€4.75n/a3
Jan ’25€2.10
€6.66
+216.9%
20.3%€8.82€5.43n/a4
Dec ’24€1.85
€6.66
+259.8%
20.3%€8.82€5.43n/a4
Nov ’24€2.20
€6.97
+216.7%
17.9%€9.00€5.71€2.194
Oct ’24€2.64
€7.28
+175.9%
14.3%€9.02€6.24€1.844
Sep ’24€3.06
€7.20
+135.3%
12.8%€8.83€6.11€1.735
Aug ’24€4.26
€7.50
+76.1%
19.1%€10.23€6.14€1.895
Jul ’24€3.78
€8.06
+113.1%
18.6%€10.42€6.25€1.695
Jun ’24€3.48
€7.82
+124.6%
21.2%€10.28€5.49€2.035
May ’24€4.28
€7.74
+81.0%
23.0%€10.85€5.43€1.426
Apr ’24€4.78
€7.48
+56.5%
22.3%€10.88€5.44€1.416
Mar ’24€6.00
€8.88
+47.9%
28.3%€13.92€6.27€1.636
Feb ’24€5.75
€9.04
+57.2%
31.6%€13.69€6.16€1.835
Jan ’24€4.86
€9.32
+91.8%
29.7%€13.91€6.95€2.105
Dec ’23€5.25
€9.86
+87.7%
28.6%€14.56€7.28€1.855
Nov ’23€6.30
€10.66
+69.3%
33.2%€17.10€7.96€2.205

Analyst Forecast: Target price is more than 20% higher than the current share price, but there are not enough analysts covering the stock to determine statistical confidence in agreement.

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