African Rainbow Minerals Limited

OTCPK:AFBO.F Stock Report

Market Cap: US$1.7b

African Rainbow Minerals Valuation

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

Below Fair Value: AFBO.F ($9.78) is trading below our estimate of fair value ($11.89)

Significantly Below Fair Value: AFBO.F is trading below fair value, but not by a significant amount.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for AFBO.F?

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

The above table shows the Price to Earnings ratio for AFBO.F. This is calculated by dividing AFBO.F's market cap by their current earnings.
What is AFBO.F's PE Ratio?
PE Ratio10x
EarningsR3.15b
Market CapR31.21b

Price to Earnings Ratio vs Peers

How does AFBO.F's PE Ratio compare to its peers?

The above table shows the PE ratio for AFBO.F vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average67.6x
MTRN Materion
32x27.4%US$2.4b
GSM Ferroglobe
19.6x49.4%US$757.2m
EUBG Entrepreneur Universe Bright Group
196.3xn/aUS$362.2m
IDR Idaho Strategic Resources
22.4x30.3%US$158.2m
AFBO.F African Rainbow Minerals
10x10.5%US$31.2b

Price-To-Earnings vs Peers: AFBO.F is good value based on its Price-To-Earnings Ratio (10x) compared to the peer average (66.9x).

Price to Earnings Ratio vs Industry

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

5 CompaniesPrice / EarningsEstimated GrowthMarket Cap
VITF.F Victoria Gold
2.1xn/aUS$23.43m
BMXI Brookmount Explorations
0.6xn/aUS$5.91m
RMRI Rocky Mountain Industrials
0.9xn/aUS$1.76m
ZCRM.F Zincore Metals
0.5xn/aUS$852.33k
AFBO.F 10.0xIndustry Avg. 19.0xNo. of Companies7PE01224364860+
5 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: AFBO.F is good value based on its Price-To-Earnings Ratio (10x) compared to the US Metals and Mining industry average (19x).

Price to Earnings Ratio vs Fair Ratio

What is AFBO.F'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.

AFBO.F PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio10x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate AFBO.F's Price-To-Earnings 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 AFBO.F forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Currentn/a
US$11.12
0%
14.7%US$12.43US$8.70n/a5
Nov ’25US$9.78
US$11.12
+13.7%
14.7%US$12.43US$8.70n/a5
Oct ’25n/a
US$12.14
0%
18.9%US$14.47US$8.91n/a5
Sep ’25n/a
US$13.20
0%
17.4%US$15.49US$9.12n/a5
Aug ’25n/a
US$12.34
0%
17.9%US$14.95US$8.80n/a6
Jul ’25US$12.45
US$11.90
-4.4%
16.5%US$14.69US$8.82n/a6
Jun ’25n/a
US$11.77
0%
15.0%US$13.68US$8.81n/a6
May ’25n/a
US$10.28
0%
14.7%US$13.17US$8.48n/a6
Apr ’25US$8.44
US$10.50
+24.5%
9.4%US$12.44US$9.58n/a6
Mar ’25n/a
US$10.78
0%
9.6%US$12.82US$9.67n/a6
Feb ’25US$9.90
US$10.78
+8.9%
9.6%US$12.82US$9.67n/a6
Jan ’25US$11.32
US$10.44
-7.8%
12.5%US$12.65US$8.44n/a6
Dec ’24US$9.80
US$10.85
+10.7%
16.8%US$14.43US$8.55n/a6
Nov ’24n/a
US$11.12
0%
17.7%US$14.24US$8.44US$9.786
Oct ’24US$8.92
US$11.88
+33.2%
13.3%US$13.72US$9.50n/a5
Sep ’24US$9.95
US$13.02
+30.9%
11.2%US$14.66US$11.27n/a5
Aug ’24n/a
US$13.02
0%
11.2%US$14.66US$11.27n/a5
Jul ’24US$10.75
US$14.06
+30.8%
7.2%US$15.01US$12.28US$12.455
Jun ’24n/a
US$14.97
0%
5.3%US$16.25US$13.82n/a5
May ’24US$12.60
US$14.97
+18.8%
5.3%US$16.25US$13.82n/a5
Apr ’24US$13.35
US$16.00
+19.9%
7.6%US$18.22US$14.91US$8.445
Mar ’24US$13.88
US$16.46
+18.6%
10.8%US$18.85US$14.41n/a5
Feb ’24US$17.75
US$16.71
-5.9%
16.0%US$19.88US$11.69US$9.906
Jan ’24US$16.35
US$16.41
+0.3%
15.3%US$18.83US$11.41US$11.326
Dec ’23US$17.57
US$16.54
-5.9%
15.8%US$19.21US$11.64US$9.806
Nov ’23US$14.80
US$15.07
+1.8%
13.3%US$17.21US$10.93n/a6

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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