South32 Valuation

Is S32 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • 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 S32 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: S32 (£1.85) is trading above our estimate of fair value (£1.3)

Significantly Below Fair Value: S32 is trading above our estimate of fair value.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for S32?

Other financial metrics that can be useful for relative valuation.

S32 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/Revenue1.6x
Enterprise Value/EBITDA9.3x
PEG Ration/a

Price to Sales Ratio vs Peers

How does S32's PS Ratio compare to its peers?

The above table shows the PS ratio for S32 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average1.6x
AAL Anglo American
1.4x0.4%UK£33.4b
GLEN Glencore
0.3x-0.6%UK£57.5b
RIO Rio Tinto Group
2.1x-0.2%UK£93.7b
GFM Griffin Mining
2.8x-0.1%UK£284.2m
S32 South32
1.5x6.9%UK£15.8b

Price-To-Sales vs Peers: S32 is good value based on its Price-To-Sales Ratio (1.5x) compared to the peer average (1.6x).


Price to Earnings Ratio vs Industry

How does S32's PE Ratio compare vs other companies in the GB Metals and Mining Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a10.7%
n/an/an/a
No. of CompaniesPS048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a10.7%
n/an/an/a
No more companies

Price-To-Sales vs Industry: S32 is good value based on its Price-To-Sales Ratio (1.5x) compared to the UK Metals and Mining industry average (1.7x).


Price to Sales Ratio vs Fair Ratio

What is S32'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.

S32 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio1.5x
Fair PS Ratio3x

Price-To-Sales vs Fair Ratio: S32 is good value based on its Price-To-Sales Ratio (1.5x) compared to the estimated Fair Price-To-Sales Ratio (3x).


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 S32 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£1.85
UK£1.97
+6.6%
9.3%UK£2.45UK£1.73n/a14
Apr ’25UK£1.55
UK£1.94
+25.5%
9.4%UK£2.42UK£1.71n/a14
Mar ’25UK£1.55
UK£1.95
+25.2%
8.9%UK£2.42UK£1.75n/a13
Feb ’25UK£1.70
UK£2.00
+17.6%
9.8%UK£2.46UK£1.61n/a13
Jan ’25UK£1.78
UK£2.04
+15.0%
10.9%UK£2.53UK£1.61n/a13
Dec ’24UK£1.64
UK£2.07
+26.0%
11.7%UK£2.51UK£1.59n/a13
Nov ’24UK£1.72
UK£2.16
+25.5%
12.4%UK£2.72UK£1.67n/a13
Oct ’24UK£1.80
UK£2.19
+21.4%
11.8%UK£2.73UK£1.78n/a12
Sep ’24UK£1.76
UK£2.11
+19.6%
11.1%UK£2.62UK£1.77n/a12
Aug ’24UK£2.02
UK£2.26
+12.1%
9.6%UK£2.73UK£1.95n/a12
Jul ’24UK£1.99
UK£2.49
+25.0%
9.3%UK£2.97UK£2.23n/a12
Jun ’24UK£2.02
UK£2.62
+29.5%
8.9%UK£3.10UK£2.37n/a12
May ’24UK£2.23
UK£2.61
+17.3%
8.8%UK£3.07UK£2.30n/a14
Apr ’24UK£2.37
UK£2.79
+17.5%
8.4%UK£3.22UK£2.46UK£1.5515
Mar ’24UK£2.53
UK£2.85
+12.8%
8.0%UK£3.28UK£2.52UK£1.5516
Feb ’24UK£2.63
UK£2.83
+7.5%
8.4%UK£3.23UK£2.45UK£1.7017
Jan ’24UK£2.27
UK£2.61
+15.1%
13.3%UK£3.29UK£1.91UK£1.7817
Dec ’23UK£2.37
UK£2.52
+6.3%
13.6%UK£3.26UK£1.90UK£1.6417
Nov ’23UK£2.09
UK£2.62
+25.3%
14.5%UK£3.31UK£1.95UK£1.7217
Oct ’23UK£2.15
UK£3.02
+40.7%
9.7%UK£3.71UK£2.54UK£1.8017
Sep ’23UK£2.35
UK£3.06
+30.7%
12.2%UK£4.13UK£2.57UK£1.7616
Aug ’23UK£2.20
UK£2.97
+35.2%
13.1%UK£3.89UK£2.44UK£2.0215
Jul ’23UK£2.20
UK£3.37
+53.0%
7.7%UK£3.91UK£2.91UK£1.9915
Jun ’23UK£2.79
UK£3.35
+20.2%
8.5%UK£3.98UK£2.87UK£2.0215
May ’23UK£2.70
UK£3.36
+24.8%
8.2%UK£4.02UK£2.87UK£2.2315
Apr ’23UK£3.01
UK£3.13
+3.9%
11.8%UK£3.95UK£2.46UK£2.3715

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


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