Lynas Rare Earths Valuation

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

Valuation Score

0/6

Valuation Score 0/6

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

Below Fair Value: LYSD.Y ($4.37) is trading above our estimate of fair value ($2.28)

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

Key Valuation Metric

Which metric is best to use when looking at relative valuation for LYSD.Y?

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

The above table shows the Price to Earnings ratio for LYSD.Y. This is calculated by dividing LYSD.Y's market cap by their current earnings.
What is LYSD.Y's PE Ratio?
PE Ratio	75.2x
Earnings	AU$84.51m
Market Cap	AU$6.36b

LYSD.Y 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	13x
Enterprise Value/EBITDA	86.2x
PEG Ratio	1.8x

Price to Earnings Ratio vs Peers

How does LYSD.Y's PE Ratio compare to its peers?

The above table shows the PE ratio for LYSD.Y 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	64.8x
MTRN Materion	32.7x	27.4%	US$2.3b
GSM Ferroglobe	21.2x	49.4%	US$849.2m
EUBG Entrepreneur Universe Bright Group	196.3x	n/a	US$362.2m
SIM Grupo Simec. de	9x	n/a	US$4.2b
LYSD.Y Lynas Rare Earths	75.2x	42.7%	US$6.4b

Price-To-Earnings vs Peers: LYSD.Y is expensive based on its Price-To-Earnings Ratio (75.2x) compared to the peer average (64.8x).

Price to Earnings Ratio vs Industry

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

5 Companies	Price / Earnings	Estimated Growth	Market Cap
VITF.F Victoria Gold	2.1x	n/a	US$23.43m
BMXI Brookmount Explorations	0.5x	n/a	US$5.42m
RMRI Rocky Mountain Industrials	0.9x	n/a	US$1.76m
ZCRM.F Zincore Metals	0.5x	n/a	US$852.33k

5 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: LYSD.Y is expensive based on its Price-To-Earnings Ratio (75.2x) compared to the US Metals and Mining industry average (19.9x).

Price to Earnings Ratio vs Fair Ratio

What is LYSD.Y'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.

LYSD.Y PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	75.2x
Fair PE Ratio	32.6x

Price-To-Earnings vs Fair Ratio: LYSD.Y is expensive based on its Price-To-Earnings Ratio (75.2x) compared to the estimated Fair Price-To-Earnings Ratio (32.6x).

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.

Discover undervalued companies

Allied Gold

CA$1.1b

Explores for and produces mineral deposits in Africa.

AAUC.F

CA$2.47

16.0%

-18.0%

Trinseo

US$122.5m

Operates as a specialty material solutions provider in the United States, Europe, the Asia-Pacific, and internationally.

TSE

US$3.55

2.6%

-45.6%

Chemtrade Logistics Income Fund

CA$1.4b

Offers industrial chemicals and services in Canada, the United States, and South America.

CGIF.F

CA$8.20

0.8%

26.3%