Rainbow Rare Earths Limited

DB:RR1 Stock Report

Market Cap: €87.2m

Rainbow Rare Earths Valuation

Is RR1 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 RR1 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: Insufficient data to calculate RR1's fair value for valuation analysis.

Significantly Below Fair Value: Insufficient data to calculate RR1's fair value for valuation analysis.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for RR1?

Key metric: As RR1 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 RR1. This is calculated by dividing RR1's market cap by their current book value.
What is RR1's PB Ratio?
PB Ratio5.8x
BookUS$15.85m
Market CapUS$92.11m

Price to Book Ratio vs Peers

How does RR1's PB Ratio compare to its peers?

The above table shows the PB ratio for RR1 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PBEstimated GrowthMarket Cap
Peer Average14.9x
M0LY Greenland Resources
46.3xn/a€64.0m
ESS Essential Metals
4.8xn/aAU$135.3m
ENR Encounter Resources
4.6xn/aAU$170.4m
WIA WIA Gold
4.1xn/aAU$162.1m
RR1 Rainbow Rare Earths
5.8x-54.8%€72.5m

Price-To-Book vs Peers: RR1 is good value based on its Price-To-Book Ratio (5.8x) compared to the peer average (18.3x).


Price to Book Ratio vs Industry

How does RR1's PB Ratio compare vs other companies in the European Metals and Mining Industry?

22 CompaniesPrice / BookEstimated GrowthMarket Cap
RR1 5.8xIndustry Avg. 0.9xNo. of Companies29PB00.61.21.82.43+
22 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Book vs Industry: RR1 is expensive based on its Price-To-Book Ratio (5.8x) compared to the European Metals and Mining industry average (0.9x).


Price to Book Ratio vs Fair Ratio

What is RR1'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.

RR1 PB Ratio vs Fair Ratio.
Fair Ratio
Current PB Ratio5.8x
Fair PB Ration/a

Price-To-Book vs Fair Ratio: Insufficient data to calculate RR1'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?

The above table shows the analyst RR1 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€0.12
€0.40
+223.9%
20.2%€0.46€0.26n/a4
Nov ’25€0.14
€0.39
+191.1%
20.6%€0.45€0.25n/a4
Oct ’25€0.11
€0.40
+253.9%
21.9%€0.47€0.25n/a4
Sep ’25€0.11
€0.38
+256.8%
25.6%€0.45€0.24n/a3
Aug ’25€0.12
€0.39
+229.6%
25.6%€0.47€0.25n/a3
Jul ’25€0.12
€0.41
+230.6%
22.3%€0.47€0.25n/a4
Jun ’25€0.13
€0.38
+207.0%
24.9%€0.46€0.25n/a3
May ’25€0.13
€0.39
+193.9%
24.7%€0.46€0.25n/a3
Apr ’25€0.10
€0.38
+283.4%
24.9%€0.46€0.25n/a3
Mar ’25€0.12
€0.39
+220.0%
19.8%€0.45€0.28n/a3
Feb ’25€0.14
€0.39
+178.9%
19.9%€0.45€0.28n/a3
Jan ’25€0.14
€0.39
+170.3%
19.9%€0.44€0.28n/a3
Dec ’24€0.17
€0.39
+132.8%
19.9%€0.45€0.28n/a3
Nov ’24€0.14
€0.42
+211.5%
20.1%€0.49€0.30€0.143
Oct ’24€0.17
€0.43
+146.5%
20.2%€0.50€0.31€0.113
Sep ’24€0.18
€0.42
+136.3%
23.0%€0.50€0.28€0.113
Aug ’24€0.14
€0.42
+203.6%
23.0%€0.50€0.28€0.123
Jul ’24€0.096
€0.48
+403.0%
4.0%€0.50€0.46€0.122
Jun ’24€0.08
€0.39
+387.8%
2.1%€0.40€0.38€0.132
May ’24€0.08
€0.38
+378.3%
4.0%€0.40€0.36€0.132
Apr ’24€0.10
€0.38
+276.5%
4.0%€0.40€0.36€0.102
Mar ’24€0.11
€0.36
+232.5%
0.1%€0.36€0.36€0.122
Feb ’24€0.12
€0.36
+215.2%
0.1%€0.36€0.36€0.142
Jan ’24€0.11
€0.38
+262.2%
0.1%€0.38€0.38€0.142
Dec ’23€0.12
€0.38
+233.9%
0.1%€0.38€0.38€0.172

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.


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