Altona Rare Earths Plc

LSE:REE Stock Report

Market Cap: UK£2.8m

Altona Rare Earths Valuation

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

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

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

Key Valuation Metric

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

Key metric: As REE 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 REE. This is calculated by dividing REE's market cap by their current book value.
What is REE's PB Ratio?
PB Ratio2.5x
BookUK£1.12m
Market CapUK£2.77m

Price to Book Ratio vs Peers

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

The above table shows the PB ratio for REE vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PBEstimated GrowthMarket Cap
Peer Average1.3x
GEMR Gem Resources
1.7xn/aUK£2.8m
MILA Mila Resources
0.4xn/aUK£2.8m
TYM Tertiary Minerals
2.6xn/aUK£2.6m
GROC GreenRoc Strategic Materials
0.3xn/aUK£3.0m
REE Altona Rare Earths
2.5xn/aUK£2.8m

Price-To-Book vs Peers: REE is expensive based on its Price-To-Book Ratio (2.5x) compared to the peer average (1.3x).

Price to Book Ratio vs Industry

How does REE'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$18.85m
RMM Rambler Metals and Mining
0.05xn/aUS$4.07m
CGNR Conroy Gold and Natural Resources
0.1xn/aUS$2.65m
REE 2.5xIndustry Avg. 1.0xNo. of Companies15PB00.61.21.82.43+
11 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Book vs Industry: REE is expensive based on its Price-To-Book Ratio (2.5x) compared to the UK Metals and Mining industry average (1x).

Price to Book Ratio vs Fair Ratio

What is REE'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.

REE PB Ratio vs Fair Ratio.
Fair Ratio
Current PB Ratio2.5x
Fair PB Ration/a

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