Merafe Resources Valuation
Is MRF undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score
4/6Valuation 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 MRF when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: MRF (ZAR1.49) is trading below our estimate of fair value (ZAR6.92)
Significantly Below Fair Value: MRF is trading below fair value by more than 20%.
Key Valuation Metric
Which metric is best to use when looking at relative valuation for MRF?
Key metric: As MRF is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.
| What is MRF's PE Ratio? | |
|---|---|
| PE Ratio | 2.6x |
| Earnings | R1.42b |
| Market Cap | R3.72b |
| Key Statistics | |
|---|---|
| Enterprise Value/Revenue | 0.2x |
| Enterprise Value/EBITDA | 1x |
| PEG Ratio | n/a |
Price to Earnings Ratio vs Peers
How does MRF's PE Ratio compare to its peers?
| Company | Forward PE | Estimated Growth | Market Cap |
|---|---|---|---|
| Peer Average | 7.7x | ||
KIO Kumba Iron Ore | 5.3x | -9.1% | R107.8b |
THA Tharisa | 3.6x | -1.6% | R4.5b |
MDI Master Drilling Group | 12.2x | n/a | R2.1b |
MPT Mpact | 9.6x | 21.2% | R4.3b |
MRF Merafe Resources | 2.6x | n/a | R3.7b |
Price-To-Earnings vs Peers: MRF is good value based on its Price-To-Earnings Ratio (2.6x) compared to the peer average (7.7x).
Price to Earnings Ratio vs Industry
How does MRF's PE Ratio compare vs other companies in the African Metals and Mining Industry?
Price-To-Earnings vs Industry: MRF is good value based on its Price-To-Earnings Ratio (2.6x) compared to the African Metals and Mining industry average (12.2x).
Price to Earnings Ratio vs Fair Ratio
What is MRF'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.
| Fair Ratio | |
|---|---|
| Current PE Ratio | 2.6x |
| Fair PE Ratio | n/a |
Price-To-Earnings vs Fair Ratio: Insufficient data to calculate MRF'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?
Analyst Forecast: Insufficient data to show price forecast.
Discover undervalued companies
Sephaku Holdings
R440.4m
Operates as a construction materials company in South Africa.
SEP
R1.90
7D
5.6%
1Y
93.9%
Afrimat
R9.7b
Operates as a mining and materials company primarily in the southern African region.
AFT
R64.15
7D
0.9%
1Y
12.8%
Glencore
UK£46.3b
Engages in the production, refinement, processing, storage, transport, and marketing of metals and minerals, and energy products in the Americas, Europe, Asia, Africa, and Oceania.
GLN
UK£86.52
7D
-1.6%
1Y
-18.4%