Lynas Rare Earths Limited

LSE:0A2N Stock Report

Market Cap: AU$5.9b

Lynas Rare Earths Valuation

Is 0A2N 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 0A2N when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 0A2N (A$6.38) is trading below our estimate of fair value (A$30.18)

Significantly Below Fair Value: 0A2N is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 0A2N?

Key metric: As 0A2N is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 0A2N. This is calculated by dividing 0A2N's market cap by their current earnings.
What is 0A2N's PE Ratio?
PE Ratio69.9x
EarningsAU$84.51m
Market CapAU$5.91b

Price to Earnings Ratio vs Peers

How does 0A2N's PE Ratio compare to its peers?

The above table shows the PE ratio for 0A2N vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average9x
KMR Kenmare Resources
4.4x3.7%UK£292.2m
GFM Griffin Mining
15.8x-3.8%UK£267.6m
RIO Rio Tinto Group
8.9x0.9%UK£80.0b
CAPD Capital
7.1x6.9%UK£163.3m
0A2N Lynas Rare Earths
69.9x43.1%AU$5.9b

Price-To-Earnings vs Peers: 0A2N is expensive based on its Price-To-Earnings Ratio (69.9x) compared to the peer average (9x).

Price to Earnings Ratio vs Industry

How does 0A2N's PE Ratio compare vs other companies in the GB Metals and Mining Industry?

5 CompaniesPrice / EarningsEstimated GrowthMarket Cap
NLMK Novolipetsk Steel
0.8xn/aUS$4.08b
EVR EVRAZ
0.4xn/aUS$1.42b
MTL Metals Exploration
0.8x-60.3%US$115.18m
ARCM Arc Minerals
1.8xn/aUS$20.03m
0A2N 69.9xIndustry Avg. 9.4xNo. of Companies7PE0816243240+
5 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 0A2N is expensive based on its Price-To-Earnings Ratio (69.9x) compared to the UK Metals and Mining industry average (9.4x).

Price to Earnings Ratio vs Fair Ratio

What is 0A2N'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.

0A2N PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio69.9x
Fair PE Ratio31.2x

Price-To-Earnings vs Fair Ratio: 0A2N is expensive based on its Price-To-Earnings Ratio (69.9x) compared to the estimated Fair Price-To-Earnings Ratio (31.2x).

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 0A2N forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentAU$6.38
AU$7.55
+18.4%
17.7%AU$9.50AU$5.00n/a15
Dec ’25AU$6.94
AU$7.55
+8.9%
18.0%AU$9.50AU$5.00n/a15
Nov ’25AU$7.65
AU$7.72
+0.9%
21.9%AU$12.00AU$5.00n/a15
Oct ’25AU$7.89
AU$7.54
-4.4%
23.0%AU$12.00AU$5.00n/a15
Sep ’25AU$7.08
AU$7.46
+5.3%
22.1%AU$12.00AU$4.95n/a16
Aug ’25AU$6.30
AU$7.09
+12.5%
23.9%AU$12.00AU$4.75n/a16
Jul ’25AU$5.94
AU$7.24
+21.9%
22.6%AU$12.00AU$4.85n/a16
Jun ’25AU$6.61
AU$7.27
+10.0%
21.7%AU$12.00AU$5.00n/a16
May ’25AU$6.50
AU$7.21
+11.0%
22.6%AU$12.00AU$5.00n/a15
Apr ’25n/a
AU$7.17
0%
14.0%AU$10.00AU$5.00n/a14
Mar ’25AU$6.11
AU$7.64
+25.1%
13.4%AU$10.00AU$6.50n/a13
Feb ’25AU$5.75
AU$8.25
+43.6%
19.2%AU$12.00AU$6.50n/a12
Jan ’25AU$7.15
AU$8.98
+25.7%
14.9%AU$12.00AU$7.20n/a12
Dec ’24AU$6.38
AU$9.17
+43.7%
15.1%AU$12.00AU$7.20AU$6.9413
Nov ’24AU$7.08
AU$9.22
+30.2%
15.3%AU$12.00AU$7.20AU$7.6513
Oct ’24AU$6.84
AU$9.05
+32.4%
16.5%AU$12.00AU$6.50AU$7.8913
Sep ’24AU$7.21
AU$9.07
+25.8%
16.2%AU$12.00AU$6.50AU$7.0813
Aug ’24AU$7.00
AU$9.11
+30.1%
18.2%AU$12.00AU$6.60AU$6.3012
Jul ’24AU$6.82
AU$9.06
+32.8%
17.5%AU$12.00AU$6.70AU$5.9413
Jun ’24AU$7.46
AU$9.14
+22.7%
17.0%AU$12.00AU$6.70AU$6.6113
May ’24AU$6.67
AU$8.54
+28.0%
20.7%AU$12.00AU$6.40AU$6.5012
Apr ’24AU$6.35
AU$8.96
+41.2%
20.1%AU$12.00AU$6.60n/a12
Mar ’24AU$8.11
AU$9.59
+18.3%
19.1%AU$12.78AU$6.70AU$6.1112
Feb ’24n/a
AU$10.08
0%
20.6%AU$12.78AU$4.95AU$5.7511
Jan ’24n/a
AU$9.57
0%
22.9%AU$12.78AU$4.95AU$7.1510
Dec ’23AU$8.45
AU$9.54
+12.9%
23.1%AU$12.78AU$4.95AU$6.3810

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 06:00
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

Lynas Rare Earths Limited is covered by 34 analysts. 15 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Michael HarrowellAPP Securities Pty Ltd.
Russell WrightBarclay Pearce Capital Pty Limited
Daniel MorganBarrenjoey Markets Pty Limited