Arcadium Lithium Valuation

Q: What is the Fair Price of ARLT.F when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

ARLT.F ($5.2) is trading below our estimate of [[fair value]] ($38.22)

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

Below Fair Value: ARLT.F ($5.2) is trading below our estimate of fair value ($38.22)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for ARLT.F. This is calculated by dividing ARLT.F's market cap by their current earnings.
What is ARLT.F's PE Ratio?
PE Ratio	36.7x
Earnings	US$155.10m
Market Cap	US$5.69b

ARLT.F 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/Revenue	8x
Enterprise Value/EBITDA	29.8x
PEG Ratio	1.2x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for ARLT.F vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	23.7x
BCPC Balchem	48.8x	14.9%	US$5.9b
NEU NewMarket	12.1x	n/a	US$5.2b
CE Celanese	7.4x	14.2%	US$8.2b
ESI Element Solutions	26.5x	0.5%	US$7.0b
ARLT.F Arcadium Lithium	36.7x	29.8%	US$5.7b

Price-To-Earnings vs Peers: ARLT.F is expensive based on its Price-To-Earnings Ratio (36.7x) compared to the peer average (23.7x).

Price to Earnings Ratio vs Industry

How does ARLT.F's PE Ratio compare vs other companies in the US Chemicals Industry?

7 Companies	Price / Earnings	Estimated Growth	Market Cap
FFHL Fuwei Films (Holdings)	2.8x	n/a	US$27.11m
BSLK Bolt Projects Holdings	0.08x	n/a	US$11.50m
BON Bon Natural Life	2.5x	n/a	US$6.23m
TANH Tantech Holdings	0.2x	n/a	US$1.26m

7 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: ARLT.F is expensive based on its Price-To-Earnings Ratio (36.7x) compared to the US Chemicals industry average (22.8x).

Price to Earnings Ratio vs Fair Ratio

What is ARLT.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.

ARLT.F PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	36.7x
Fair PE Ratio	43.5x

Price-To-Earnings vs Fair Ratio: ARLT.F is good value based on its Price-To-Earnings Ratio (36.7x) compared to the estimated Fair Price-To-Earnings Ratio (43.5x).

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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