Rainbow Rare Earths Limited

BATS-CHIXE:RBWL Stock Report

Market Cap: UK£74.1m

Rainbow Rare Earths Valuation

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

Below Fair Value: RBWL (£0.15) is trading below our estimate of fair value (£5.89)

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

Key Valuation Metric

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

Key metric: As RBWL 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 RBWL. This is calculated by dividing RBWL's market cap by their current book value.
What is RBWL's PB Ratio?
PB Ratio6.6x
BookUS$14.17m
Market CapUS$93.74m

Price to Book Ratio vs Peers

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

The above table shows the PB ratio for RBWL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PBEstimated GrowthMarket Cap
Peer Average1.3x
AAZ Anglo Asian Mining
1.7x189.1%UK£109.7m
KDNC Cadence Minerals
0.3xn/aUK£9.9m
KOD Kodal Minerals
1.1x-46.5%UK£64.8m
SAV Savannah Resources
2.1x74.9%UK£88.0m
RBWL Rainbow Rare Earths
6.6x60.6%UK£74.1m

Price-To-Book vs Peers: RBWL is expensive based on its Price-To-Book Ratio (6.6x) compared to the peer average (6.2x).

Price to Book Ratio vs Industry

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

11 CompaniesPrice / BookEstimated GrowthMarket Cap
POG Petropavlovsk
0.08x12.5%US$56.91m
GEMD Gem Diamonds
0.1x1.9%US$18.14m
RMM Rambler Metals and Mining
0.05xn/aUS$4.07m
CGNR Conroy Gold and Natural Resources
0.1xn/aUS$2.58m
No. of Companies17PB00.61.21.82.43+
11 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Book vs Industry: RBWL is expensive based on its Price-To-Book Ratio (6.6x) compared to the UK Metals and Mining industry average (0.9x).

Price to Book Ratio vs Fair Ratio

What is RBWL'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.

RBWL PB Ratio vs Fair Ratio.
Fair Ratio
Current PB Ratio6.6x
Fair PB Ration/a

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

Analyst Forecast: Insufficient data to show price forecast.

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