Turquoise Hill Resources Ltd.

NYSE:TRQ Stock Report

Market Cap: US$6.3b

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This company may still be operating, however this listing is no longer active. Find out why through their latest events.

Turquoise Hill Resources Valuation

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

Valuation Score

4/6

Valuation Score 4/6

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

Below Fair Value: TRQ ($31.41) is trading below our estimate of fair value ($299.92)

Significantly Below Fair Value: TRQ is trading below fair value by more than 20%.

Key Valuation Metric

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

Key metric: As TRQ is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for TRQ. This is calculated by dividing TRQ's market cap by their current earnings.
What is TRQ's PE Ratio?
PE Ratio11.8x
EarningsUS$534.05m
Market CapUS$6.32b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for TRQ vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average165.2x
MTRN Materion
294.1x75.7%US$1.7b
MP MP Materials
n/a79.1%US$4.3b
GSM Ferroglobe
133.3x61.0%US$704.6m
CMC Commercial Metals
68.2x67.3%US$5.0b
TRQ Turquoise Hill Resources
11.8x40.0%US$8.7b

Price-To-Earnings vs Peers: TRQ is good value based on its Price-To-Earnings Ratio (11.8x) compared to the peer average (12.4x).

Price to Earnings Ratio vs Industry

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

7 CompaniesPrice / EarningsEstimated GrowthMarket Cap
MSB Mesabi Trust
3.9xn/aUS$359.75m
VITF.F Victoria Gold
2.1xn/aUS$23.43m
BMXI Brookmount Explorations
0.6xn/aUS$5.96m
RMRI Rocky Mountain Industrials
0.9xn/aUS$1.76m
TRQ 11.8xIndustry Avg. 21.2xNo. of Companies8PE01632486480+
7 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: TRQ is expensive based on its Price-To-Earnings Ratio (11.8x) compared to the US Metals and Mining industry average (6.8x)

Price to Earnings Ratio vs Fair Ratio

What is TRQ'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.

TRQ PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio11.8x
Fair PE Ratio25.5x

Price-To-Earnings vs Fair Ratio: TRQ is good value based on its Price-To-Earnings Ratio (11.8x) compared to the estimated Fair Price-To-Earnings Ratio (25.5x).

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 TRQ forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Currentn/a
US$33.41
0%
5.5%US$35.27US$31.56n/a2
Apr ’26n/a
US$33.41
0%
5.5%US$35.27US$31.56n/a2
Mar ’26n/a
US$33.41
0%
5.5%US$35.27US$31.56n/a2
Feb ’26n/a
US$33.41
0%
5.5%US$35.27US$31.56n/a2
Jan ’26n/a
US$33.41
0%
5.5%US$35.27US$31.56n/a2
Dec ’25n/a
US$33.41
0%
5.5%US$35.27US$31.56n/a2
Nov ’25n/a
US$33.41
0%
5.5%US$35.27US$31.56n/a2
Oct ’25n/a
US$33.41
0%
5.5%US$35.27US$31.56n/a2
Sep ’25n/a
US$33.41
0%
5.5%US$35.27US$31.56n/a2
Aug ’25n/a
US$33.41
0%
5.5%US$35.27US$31.56n/a2
Jul ’25n/a
US$33.41
0%
5.5%US$35.27US$31.56n/a2
Jun ’25n/a
US$33.41
0%
5.5%US$35.27US$31.56n/a2
May ’25n/a
US$33.41
0%
5.5%US$35.27US$31.56n/a2
Apr ’25n/a
US$33.41
0%
5.5%US$35.27US$31.56n/a2
Mar ’25n/a
US$33.41
0%
5.5%US$35.27US$31.56n/a2
Feb ’25n/a
US$33.41
0%
5.5%US$35.27US$31.56n/a2
Jan ’25n/a
US$33.41
0%
5.5%US$35.27US$31.56n/a2
Dec ’24n/a
US$33.41
0%
5.5%US$35.27US$31.56n/a2
Nov ’24n/a
US$33.41
0%
5.5%US$35.27US$31.56n/a2
Oct ’24n/a
US$33.41
0%
5.5%US$35.27US$31.56n/a2
Sep ’24n/a
US$33.41
0%
5.5%US$35.27US$31.56n/a2
Aug ’24n/a
US$33.41
0%
5.5%US$35.27US$31.56n/a2
Jul ’24n/a
US$33.41
0%
5.5%US$35.27US$31.56n/a2
Jun ’24n/a
US$33.41
0%
5.5%US$35.27US$31.56n/a2
May ’24n/a
US$33.41
0%
5.5%US$35.27US$31.56n/a2
Apr ’24n/a
US$33.41
0%
5.5%US$35.27US$31.56n/a2

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

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2022/12/17 12:15
End of Day Share Price 2022/12/15 00:00
Earnings2022/09/30
Annual Earnings2021/12/31

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

Turquoise Hill Resources Ltd. is covered by 18 analysts. 2 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
John HayesBMO Capital Markets Equity Research
Tony RobsonBMO Capital Markets Equity Research
Oscar CabreraBofA Global Research