TMC the metals (TMC): Rethinking Valuation After a Volatile, Triple-Digit One-Year Share Price Surge

Why TMC the metals (TMC) Is Back on Traders’ Screens

TMC the metals (TMC) has quietly staged a comeback, with the share price up over the past month and past 3 months, even as near term returns remain choppy.

See our latest analysis for TMC the metals.

That jumpy recent trading sits on top of a huge move, with the share price up sharply on a year to date basis and a 1 year total shareholder return above 700 percent, suggesting momentum is still very much in play even if volatility has picked up.

If TMC’s run has you thinking about what else could surprise to the upside, this is a good moment to scout other fast growing stocks with high insider ownership.

With no revenue yet, fast widening losses and a price still below analyst targets, investors face a pivotal question: is TMC undervalued frontier growth, or is the market already pricing in its deep sea potential?

Price to Book of -67.6x, is it justified?

TMC the metals last closed at $6.64, but its valuation story cannot lean on a traditional price to book comparison because reported equity is negative.

Price to book usually compares a company’s market value to the net assets on its balance sheet, which is a common yardstick for asset heavy, capital intensive businesses like metals and mining companies.

In TMC’s case, liabilities exceed assets, so the resulting price to book of -67.6x against a US Metals and Mining industry average of 2.1x is a red flag rather than a useful benchmark. It highlights how hard it is to anchor valuation when the company is unprofitable, has negative equity and is forecast to generate no revenue next year.

With no robust fair ratio or discounted cash flow estimate available, investors are left weighing a speculative future profit profile, where earnings are forecast to grow rapidly and return on equity is expected to become very high in three years, against today’s fragile balance sheet and higher risk funding mix.

See what the numbers say about this price — find out in our valuation breakdown.

Result: Price to Book of -67.6x (ABOUT RIGHT as a risk signal, not a traditional valuation anchor)

However, investors still need to factor in continued losses and regulatory uncertainty around deep sea mining, either of which could undermine the bullish narrative.

Find out about the key risks to this TMC the metals narrative.

Build Your Own TMC the metals Narrative

If this perspective does not fully align with your own, dive into the numbers yourself and build a custom view in just a few minutes: Do it your way.

A great starting point for your TMC the metals research is our analysis highlighting 1 key reward and 5 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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