Griffin Mining Valuation

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

Below Fair Value: GFM (£1.42) is trading below our estimate of fair value (£4.68)

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


Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for GFM. This is calculated by dividing GFM's market cap by their current earnings.
What is GFM's PE Ratio?
PE Ratio15.5x
EarningsUS$21.34m
Market CapUS$336.11m

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for GFM vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average3.8x
KMR Kenmare Resources
4.6x3.7%UK£301.6m
CAPD Capital
7.3x6.9%UK£164.9m
MTL Metals Exploration
0.8x-60.3%UK£89.0m
KOD Kodal Minerals
2.6x-46.5%UK£69.9m
GFM Griffin Mining
15.6x-3.8%UK£260.2m

Price-To-Earnings vs Peers: GFM is expensive based on its Price-To-Earnings Ratio (15.6x) compared to the peer average (3.8x).


Price to Earnings Ratio vs Industry

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

7 CompaniesPrice / EarningsEstimated GrowthMarket Cap
ENPL En+ Group International
2.2x8.0%US$4.67b
NLMK Novolipetsk Steel
0.8xn/aUS$4.08b
EVR EVRAZ
0.4xn/aUS$1.42b
MTL Metals Exploration
0.8x-60.3%US$113.58m
GFM 15.5xIndustry Avg. 9.8xNo. of Companies7PE01020304050+
7 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: GFM is expensive based on its Price-To-Earnings Ratio (15.6x) compared to the UK Metals and Mining industry average (9.8x).


Price to Earnings Ratio vs Fair Ratio

What is GFM'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.

GFM PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio15.5x
Fair PE Ratio9.7x

Price-To-Earnings vs Fair Ratio: GFM is expensive based on its Price-To-Earnings Ratio (15.6x) compared to the estimated Fair Price-To-Earnings Ratio (9.7x).


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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