Anglo American Valuation

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

Valuation Score

1/6

Valuation Score 1/6

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

Below Fair Value: AAL (£22.34) is trading below our estimate of fair value (£27.03)

Significantly Below Fair Value: AAL is trading below fair value, but not by a significant amount.


Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

AAL key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.7x
Enterprise Value/EBITDA5.7x
PEG Ratio3.8x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for AAL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average19.9x
GLEN Glencore
16.3x11.5%UK£53.9b
RIO Rio Tinto Group
10.3x2.2%UK£83.7b
ANTO Antofagasta
29.5x15.5%UK£19.1b
GFM Griffin Mining
23.5x4.3%UK£276.5m
AAL Anglo American
123.8x32.2%UK£27.1b

Price-To-Earnings vs Peers: AAL is expensive based on its Price-To-Earnings Ratio (123.8x) compared to the peer average (19.9x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a11.9%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a11.9%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: AAL is expensive based on its Price-To-Earnings Ratio (123.8x) compared to the UK Metals and Mining industry average (13.7x).


Price to Earnings Ratio vs Fair Ratio

What is AAL'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.

AAL PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio123.8x
Fair PE Ratio38.5x

Price-To-Earnings vs Fair Ratio: AAL is expensive based on its Price-To-Earnings Ratio (123.8x) compared to the estimated Fair Price-To-Earnings Ratio (38.5x).


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 AAL forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£22.34
UK£26.14
+17.0%
10.5%UK£31.10UK£20.98n/a17
Jul ’25UK£24.33
UK£26.48
+8.9%
11.3%UK£30.99UK£20.00n/a18
Jun ’25UK£25.14
UK£26.82
+6.7%
12.2%UK£31.90UK£20.15n/a17
May ’25UK£26.35
UK£24.57
-6.7%
18.1%UK£31.14UK£15.92n/a14
Apr ’25UK£19.52
UK£21.77
+11.5%
14.3%UK£27.04UK£16.01n/a19
Mar ’25UK£17.61
UK£21.75
+23.5%
14.1%UK£27.03UK£16.02n/a19
Feb ’25UK£18.79
UK£22.76
+21.2%
17.2%UK£33.35UK£15.95n/a19
Jan ’25UK£19.71
UK£23.09
+17.2%
18.8%UK£33.39UK£14.78n/a18
Dec ’24UK£23.11
UK£26.26
+13.6%
11.0%UK£33.68UK£21.99n/a18
Nov ’24UK£20.84
UK£26.93
+29.2%
12.1%UK£34.92UK£20.68n/a18
Oct ’24UK£22.66
UK£27.50
+21.4%
12.9%UK£35.74UK£22.38n/a18
Sep ’24UK£21.36
UK£26.81
+25.5%
12.1%UK£34.41UK£21.83n/a19
Aug ’24UK£23.43
UK£26.95
+15.0%
12.2%UK£34.12UK£21.64n/a19
Jul ’24UK£22.33
UK£28.90
+29.4%
13.7%UK£34.33UK£22.31UK£24.3319
Jun ’24UK£23.00
UK£31.44
+36.7%
16.1%UK£42.57UK£22.29UK£25.1420
May ’24UK£24.45
UK£31.74
+29.8%
16.4%UK£42.70UK£22.25UK£26.3519
Apr ’24UK£26.78
UK£31.76
+18.6%
17.4%UK£41.91UK£22.36UK£19.5219
Mar ’24UK£29.80
UK£33.83
+13.5%
16.2%UK£43.02UK£25.74UK£17.6120
Feb ’24UK£33.87
UK£33.75
-0.3%
16.3%UK£42.77UK£24.99UK£18.7920
Jan ’24UK£32.37
UK£33.25
+2.7%
14.6%UK£41.40UK£25.68UK£19.7121
Dec ’23UK£33.02
UK£32.67
-1.0%
14.7%UK£40.74UK£22.76UK£23.1121
Nov ’23UK£27.67
UK£33.85
+22.4%
15.3%UK£43.43UK£24.27UK£20.8421
Oct ’23UK£27.36
UK£35.85
+31.0%
14.0%UK£47.08UK£28.05UK£22.6622
Sep ’23UK£26.78
UK£36.08
+34.7%
12.4%UK£44.90UK£26.75UK£21.3622
Aug ’23UK£28.33
UK£35.13
+24.0%
13.1%UK£45.16UK£25.35UK£23.4322
Jul ’23UK£28.22
UK£40.06
+42.0%
13.8%UK£51.45UK£32.10UK£22.3322

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


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