Lynas Rare Earths Limited

DB:LYIC Stock Report

Market Cap: €4.0b

Lynas Rare Earths Valuation

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

Below Fair Value: LYIC (€4.12) is trading above our estimate of fair value (€2.24)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for LYIC. This is calculated by dividing LYIC's market cap by their current earnings.
What is LYIC's PE Ratio?
PE Ratio77.2x
EarningsAU$84.51m
Market CapAU$6.52b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for LYIC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average23.1x
NDA Aurubis
9x-6.2%€3.5b
WCH Wacker Chemie
28.8x37.0%€3.6b
FPE3 Fuchs
19.2x8.9%€5.1b
EVK Evonik Industries
35.4x33.1%€8.1b
LYIC Lynas Rare Earths
77.2x42.7%€6.5b

Price-To-Earnings vs Peers: LYIC is expensive based on its Price-To-Earnings Ratio (77.2x) compared to the peer average (23.2x).

Price to Earnings Ratio vs Industry

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

15 CompaniesPrice / EarningsEstimated GrowthMarket Cap
LYIC 77.2xIndustry Avg. 12.4xNo. of Companies15PE0816243240+
15 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: LYIC is expensive based on its Price-To-Earnings Ratio (77.2x) compared to the European Metals and Mining industry average (12.5x).

Price to Earnings Ratio vs Fair Ratio

What is LYIC'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.

LYIC PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio77.2x
Fair PE Ratio32.5x

Price-To-Earnings vs Fair Ratio: LYIC is expensive based on its Price-To-Earnings Ratio (77.2x) compared to the estimated Fair Price-To-Earnings Ratio (32.5x).

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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