West African Resources Limited

DB:W25 Stock Report

Market Cap: €1.1b

West African Resources Valuation

Is W25 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • 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 W25 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: W25 (€0.9) is trading below our estimate of fair value (€5.1)

Significantly Below Fair Value: W25 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for W25?

Key metric: As W25 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for W25. This is calculated by dividing W25's market cap by their current earnings.
What is W25's PE Ratio?
PE Ratio11x
EarningsAU$154.70m
Market CapAU$1.70b

Price to Earnings Ratio vs Peers

How does W25's PE Ratio compare to its peers?

The above table shows the PE ratio for W25 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average27.7x
NDA Aurubis
9x-6.2%€3.4b
STO3 Sto SE KGaA
11x3.5%€723.6m
SDF K+S
78.9x61.1%€2.0b
ACT AlzChem Group
12.1x12.6%€606.5m
W25 West African Resources
11x28.7%€1.7b

Price-To-Earnings vs Peers: W25 is good value based on its Price-To-Earnings Ratio (11x) compared to the peer average (27.7x).

Price to Earnings Ratio vs Industry

How does W25's PE Ratio compare vs other companies in the European Metals and Mining Industry?

15 CompaniesPrice / EarningsEstimated GrowthMarket Cap
W25 11.0xIndustry Avg. 12.1xNo. of Companies15PE0816243240+
15 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: W25 is good value based on its Price-To-Earnings Ratio (11x) compared to the European Metals and Mining industry average (12.1x).

Price to Earnings Ratio vs Fair Ratio

What is W25'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.

W25 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio11x
Fair PE Ratio23.5x

Price-To-Earnings vs Fair Ratio: W25 is good value based on its Price-To-Earnings Ratio (11x) compared to the estimated Fair Price-To-Earnings Ratio (23.5x).

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 W25 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€0.90
€1.60
+77.2%
25.9%€2.27€1.23n/a4
Nov ’25€1.08
€1.60
+47.9%
25.9%€2.28€1.23n/a4
Oct ’25€1.05
€1.39
+32.9%
24.3%€1.91€1.00n/a4
Sep ’25€0.85
€1.20
+41.7%
15.7%€1.46€1.00n/a3
Aug ’25€0.87
€1.20
+37.4%
15.7%€1.45€1.00n/a3
Jul ’25€0.97
€1.36
+40.8%
7.4%€1.49€1.24n/a3
Jun ’25€0.90
€1.22
+35.6%
16.3%€1.47€0.98n/a3
May ’25€0.79
€1.14
+44.0%
18.2%€1.45€0.94n/a4
Apr ’25€0.70
€1.03
+47.8%
11.7%€1.21€0.90n/a4
Mar ’25€0.52
€0.97
+86.3%
9.9%€1.08€0.84n/a4
Feb ’25€0.57
€0.97
+70.6%
7.9%€1.07€0.86n/a4
Jan ’25€0.57
€1.00
+75.0%
13.5%€1.23€0.86n/a4
Dec ’24€0.55
€0.93
+70.4%
16.2%€1.20€0.78n/a5
Nov ’24€0.44
€0.94
+114.9%
16.2%€1.21€0.78€1.085
Oct ’24€0.46
€0.96
+109.6%
14.8%€1.22€0.79€1.055
Sep ’24€0.50
€0.96
+93.5%
14.8%€1.22€0.79€0.855
Aug ’24€0.53
€0.96
+81.6%
14.8%€1.22€0.79€0.875
Jul ’24€0.52
€0.97
+87.8%
16.1%€1.22€0.79€0.974
Jun ’24€0.53
€0.99
+87.0%
15.8%€1.23€0.79€0.904
May ’24€0.57
€0.97
+69.0%
15.8%€1.20€0.78€0.794
Apr ’24€0.58
€1.04
+79.5%
7.5%€1.12€0.93€0.703
Mar ’24€0.59
€1.06
+80.5%
7.6%€1.17€0.97€0.523
Feb ’24€0.69
€1.06
+53.9%
7.6%€1.17€0.97€0.573
Jan ’24€0.73
€1.04
+41.3%
12.5%€1.22€0.93€0.573
Dec ’23€0.76
€1.06
+39.5%
12.5%€1.24€0.95€0.553
Nov ’23€0.68
€1.03
+52.5%
11.0%€1.22€0.93€0.444

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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