South32 Limited

BATS-CHIXE:S32L Stock Report

Market Cap: UK£7.5b

South32 Valuation

Is S32L 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-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of S32L when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: S32L (£1.67) is trading above our estimate of fair value (£0.06)

Significantly Below Fair Value: S32L is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for S32L?

Key metric: As S32L is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for S32L. This is calculated by dividing S32L's market cap by their current revenue.
What is S32L's PS Ratio?
PS Ratio1.7x
SalesUS$5.59b
Market CapUS$9.40b

Price to Sales Ratio vs Peers

How does S32L's PS Ratio compare to its peers?

The above table shows the PS ratio for S32L vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average1x
AAL Anglo American
1.2x0.7%UK£28.3b
GLEN Glencore
0.2x-1.0%UK£42.9b
RIO Rio Tinto Group
1.8x0.08%UK£80.0b
KMR Kenmare Resources
1x5.5%UK£292.2m
S32L South32
1.7x8.7%UK£15.0b

Price-To-Sales vs Peers: S32L is expensive based on its Price-To-Sales Ratio (1.7x) compared to the peer average (1x).

Price to Sales Ratio vs Industry

How does S32L's PS Ratio compare vs other companies in the GB Metals and Mining Industry?

14 CompaniesPrice / SalesEstimated GrowthMarket Cap
GLEN Glencore
0.2x-1.0%US$53.95b
NLMK Novolipetsk Steel
0.3xn/aUS$4.08b
EVR EVRAZ
0.1x-8.5%US$1.42b
PDL Petra Diamonds
0.2x8.8%US$68.62m
No. of Companies14PS01.22.43.64.86+
14 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: S32L is good value based on its Price-To-Sales Ratio (1.7x) compared to the UK Metals and Mining industry average (1.8x).

Price to Sales Ratio vs Fair Ratio

What is S32L's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

S32L PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio1.7x
Fair PS Ratio2.7x

Price-To-Sales vs Fair Ratio: S32L is good value based on its Price-To-Sales Ratio (1.7x) compared to the estimated Fair Price-To-Sales Ratio (2.7x).

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 S32L forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£1.67
UK£1.97
+18.0%
14.0%UK£2.39UK£1.21n/a14
Dec ’25UK£1.91
UK£1.93
+1.4%
14.2%UK£2.38UK£1.21n/a14
Nov ’25UK£1.90
UK£1.92
+1.2%
14.8%UK£2.33UK£1.15n/a14
Oct ’25UK£1.89
UK£1.84
-2.3%
15.1%UK£2.28UK£1.14n/a14
Sep ’25UK£1.60
UK£1.87
+16.4%
15.6%UK£2.33UK£1.15n/a15
Aug ’25UK£1.57
UK£1.95
+24.2%
11.3%UK£2.38UK£1.57n/a14
Jul ’25UK£1.98
UK£2.15
+8.5%
9.7%UK£2.51UK£1.69n/a14
Jun ’25UK£2.06
UK£2.04
-1.4%
10.4%UK£2.40UK£1.68n/a14
May ’25UK£1.81
UK£1.97
+9.2%
9.3%UK£2.45UK£1.73n/a14
Apr ’25UK£1.55
UK£1.94
+25.0%
9.4%UK£2.42UK£1.71n/a14
Mar ’25UK£1.55
UK£1.95
+25.7%
8.9%UK£2.42UK£1.75n/a13
Feb ’25UK£1.70
UK£1.99
+17.3%
9.8%UK£2.46UK£1.61n/a13
Jan ’25UK£1.78
UK£2.04
+14.6%
10.9%UK£2.53UK£1.61n/a13
Dec ’24UK£1.64
UK£2.07
+25.8%
11.7%UK£2.51UK£1.59UK£1.9113
Nov ’24UK£1.73
UK£2.16
+24.6%
12.4%UK£2.72UK£1.67UK£1.9013
Oct ’24UK£1.80
UK£2.19
+21.5%
11.8%UK£2.73UK£1.79UK£1.8912
Sep ’24UK£1.77
UK£2.11
+19.1%
11.1%UK£2.62UK£1.77UK£1.6012
Aug ’24UK£2.02
UK£2.26
+12.1%
9.6%UK£2.73UK£1.95UK£1.5712
Jul ’24UK£1.99
UK£2.49
+24.8%
9.3%UK£2.97UK£2.23UK£1.9812
Jun ’24UK£2.03
UK£2.61
+28.7%
8.7%UK£3.10UK£2.37UK£2.0612
May ’24UK£2.22
UK£2.61
+17.4%
8.7%UK£3.07UK£2.30UK£1.8114
Apr ’24UK£2.36
UK£2.79
+18.0%
8.4%UK£3.22UK£2.46UK£1.5515
Mar ’24UK£2.54
UK£2.85
+12.1%
8.0%UK£3.28UK£2.52UK£1.5516
Feb ’24UK£2.63
UK£2.83
+7.7%
8.4%UK£3.23UK£2.45UK£1.7017
Jan ’24UK£2.26
UK£2.61
+15.3%
13.3%UK£3.29UK£1.91UK£1.7817
Dec ’23UK£2.38
UK£2.52
+5.9%
13.6%UK£3.26UK£1.90UK£1.6417

Analyst Forecast: Target price is less than 20% higher than the current share price.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/22 05:04
End of Day Share Price 2024/12/20 00:00
Earnings2024/06/30
Annual Earnings2024/06/30

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

South32 Limited is covered by 48 analysts. 13 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Ayan GhoshAvior Capital Markets
Russell WrightBarclay Pearce Capital Pty Limited
Izak RossouwBarclays