Rainbow Rare Earths Limited

LSE:RBW Stock Report

Market Cap: UK£75.6m

Rainbow Rare Earths Valuation

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

Valuation Score

0/6

Valuation Score 0/6

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

Below Fair Value: Insufficient data to calculate RBW's fair value for valuation analysis.

Significantly Below Fair Value: Insufficient data to calculate RBW's fair value for valuation analysis.


Key Valuation Metric

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

Key metric: As RBW 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 RBW. This is calculated by dividing RBW's market cap by their current book value.
What is RBW's PB Ratio?
PB Ratio5.9x
BookUS$15.85m
Market CapUS$94.03m

Price to Book Ratio vs Peers

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

The above table shows the PB ratio for RBW 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
2x189.1%UK£131.4m
CRTX CRISM Therapeutics
1.3xn/aUK£2.8m
KDNC Cadence Minerals
0.3xn/aUK£9.9m
PRE Pensana
1.5xn/aUK£75.9m
RBW Rainbow Rare Earths
5.9x-55.4%UK£75.6m

Price-To-Book vs Peers: RBW is expensive based on its Price-To-Book Ratio (5.9x) compared to the peer average (1.4x).


Price to Book Ratio vs Industry

How does RBW'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$20.02m
RMM Rambler Metals and Mining
0.05xn/aUS$4.07m
TM1 Technology Minerals
0.1xn/aUS$2.80m
RBW 5.9xIndustry Avg. 0.9xNo. of Companies19PB00.61.21.82.43+
11 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Book vs Industry: RBW is expensive based on its Price-To-Book Ratio (5.9x) compared to the UK Metals and Mining industry average (0.9x).


Price to Book Ratio vs Fair Ratio

What is RBW'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.

RBW PB Ratio vs Fair Ratio.
Fair Ratio
Current PB Ratio5.9x
Fair PB Ration/a

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

The above table shows the analyst RBW forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£0.12
UK£0.31
+162.2%
19.5%UK£0.39UK£0.22n/a4
Jan ’26UK£0.12
UK£0.32
+162.3%
20.8%UK£0.38UK£0.22n/a4
Dec ’25UK£0.12
UK£0.33
+189.4%
20.3%UK£0.38UK£0.22n/a4
Nov ’25UK£0.13
UK£0.33
+163.3%
20.6%UK£0.38UK£0.21n/a4
Oct ’25UK£0.10
UK£0.33
+225.2%
21.9%UK£0.39UK£0.21n/a4
Sep ’25UK£0.10
UK£0.32
+214.1%
25.6%UK£0.38UK£0.21n/a3
Aug ’25UK£0.11
UK£0.33
+192.8%
25.6%UK£0.40UK£0.21n/a3
Jul ’25UK£0.10
UK£0.35
+228.9%
22.3%UK£0.40UK£0.21n/a4
Jun ’25UK£0.11
UK£0.33
+193.3%
24.9%UK£0.39UK£0.21n/a3
May ’25UK£0.12
UK£0.33
+169.0%
24.7%UK£0.39UK£0.21n/a3
Apr ’25UK£0.098
UK£0.33
+234.4%
24.9%UK£0.39UK£0.21n/a3
Mar ’25UK£0.12
UK£0.34
+186.5%
19.8%UK£0.39UK£0.24n/a3
Feb ’25UK£0.13
UK£0.34
+154.0%
19.9%UK£0.39UK£0.24UK£0.123
Jan ’25UK£0.13
UK£0.34
+163.5%
19.9%UK£0.39UK£0.24UK£0.123
Dec ’24UK£0.14
UK£0.34
+132.1%
19.9%UK£0.39UK£0.24UK£0.123
Nov ’24UK£0.13
UK£0.37
+194.8%
20.1%UK£0.43UK£0.26UK£0.133
Oct ’24UK£0.16
UK£0.37
+127.2%
20.2%UK£0.43UK£0.26UK£0.103
Sep ’24UK£0.16
UK£0.36
+119.3%
23.0%UK£0.43UK£0.24UK£0.103
Aug ’24UK£0.13
UK£0.36
+175.0%
23.0%UK£0.43UK£0.24UK£0.113
Jul ’24UK£0.095
UK£0.42
+338.9%
4.0%UK£0.43UK£0.40UK£0.102
Jun ’24UK£0.081
UK£0.34
+315.5%
2.1%UK£0.34UK£0.33UK£0.112
May ’24UK£0.083
UK£0.33
+305.2%
4.0%UK£0.35UK£0.32UK£0.122
Apr ’24UK£0.087
UK£0.33
+282.1%
4.0%UK£0.35UK£0.32UK£0.0982
Mar ’24UK£0.11
UK£0.32
+190.0%
0.1%UK£0.32UK£0.32UK£0.122
Feb ’24UK£0.12
UK£0.32
+177.4%
0.1%UK£0.32UK£0.32UK£0.132
Analyst Price Target
Consensus Narrative from 4 Analysts
UK£0.31
Fair Value
61.9% undervalued intrinsic discount
4
Number of Analysts

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.


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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/02/06 11:03
End of Day Share Price 2025/02/06 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.

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 Github.

Analyst Sources

Rainbow Rare Earths Limited is covered by 7 analysts. 4 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Charles FitzroyArden Partners Plc.
Richard HatchBerenberg
Timothy HuffCanaccord Genuity