Pan African Resources PLC

JSE:PAN Stock Report

Market Cap: R14.8b

Pan African Resources Valuation

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

Valuation Score

5/6

Valuation Score 5/6

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

Below Fair Value: PAN (ZAR7.58) is trading below our estimate of fair value (ZAR13.17)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for PAN. This is calculated by dividing PAN's market cap by their current earnings.
What is PAN's PE Ratio?
PE Ratio10.2x
EarningsUS$79.38m
Market CapUS$810.59m

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for PAN vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average12.7x
HAR Harmony Gold Mining
12.1x28.9%R103.9b
GFI Gold Fields
19.1x40.6%R233.1b
ARI African Rainbow Minerals
10x10.5%R31.5b
OMN Omnia Holdings
9.7xn/aR11.0b
PAN Pan African Resources
10.2xn/aR643.0m

Price-To-Earnings vs Peers: PAN is good value based on its Price-To-Earnings Ratio (10.2x) compared to the peer average (12.7x).

Price to Earnings Ratio vs Industry

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

3 CompaniesPrice / EarningsEstimated GrowthMarket Cap
PAN 10.2xIndustry Avg. 11.7xNo. of Companies4PE01224364860+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: PAN is good value based on its Price-To-Earnings Ratio (10.2x) compared to the African Metals and Mining industry average (11.7x).

Price to Earnings Ratio vs Fair Ratio

What is PAN'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.

PAN PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio10.2x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate PAN'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 PAN forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentR8.21
R8.54
+4.1%
7.4%R9.17R7.80n/a4
Oct ’25R7.67
R8.24
+7.4%
7.6%R9.28R7.66n/a4
Sep ’25R7.24
R7.96
+9.9%
8.6%R8.90R7.02n/a4
Aug ’25R6.79
R7.92
+16.6%
8.6%R8.85R6.98n/a4
Jul ’25R6.14
R7.53
+22.6%
10.4%R8.87R7.00n/a4
Jun ’25R6.01
R6.88
+14.5%
10.0%R7.66R5.98n/a4
May ’25R5.71
R6.54
+14.6%
8.3%R7.38R5.95n/a4
Apr ’25R5.39
R6.05
+12.3%
8.1%R6.69R5.49n/a3
Mar ’25R4.82
R5.91
+22.5%
3.9%R6.07R5.58n/a3
Feb ’25R4.32
R5.11
+18.3%
17.6%R5.94R3.80n/a4
Jan ’25R4.09
R5.11
+24.9%
17.6%R5.94R3.80n/a4
Dec ’24R4.13
R5.30
+28.3%
16.8%R5.89R3.77n/a4
Nov ’24R3.62
R5.30
+46.4%
16.8%R5.89R3.77R8.214
Oct ’24R3.35
R5.30
+58.2%
16.8%R5.89R3.77R7.674
Sep ’24R3.22
R5.30
+64.6%
16.8%R5.89R3.77R7.244
Aug ’24R3.34
R5.30
+58.7%
16.8%R5.89R3.77R6.794
Jul ’24R3.03
R5.83
+92.4%
5.1%R6.07R5.34R6.144
Jun ’24R3.49
R5.95
+70.5%
7.4%R6.56R5.34R6.014
May ’24R4.11
R5.82
+41.6%
16.1%R7.39R4.92R5.714
Apr ’24R3.68
R5.63
+53.0%
18.5%R7.29R4.42R5.394
Mar ’24R3.13
R5.45
+74.0%
17.1%R6.90R4.31R4.824
Feb ’24R3.57
R5.43
+52.1%
16.8%R6.82R4.26R4.324
Jan ’24R3.35
R5.01
+49.6%
10.7%R5.58R4.13R4.094
Dec ’23R3.75
R5.07
+35.2%
13.2%R5.82R4.02R4.134
Nov ’23R3.53
R5.07
+43.7%
13.2%R5.82R4.02R3.624

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

Discover undervalued companies

Merafe Resources

R3.7b

Engages in the mining and beneficiation of chrome ore into ferrochrome.

MRF

R1.49

7D

4.9%

1Y

22.1%

Glencore

UK£46.1b

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£86.93

7D

-3.2%

1Y

-18.5%

Harmony Gold Mining

R103.9b

Engages in the exploration, extraction, and processing of mineral properties in South Africa, Papua New Guinea, and Australasia.

HAR

R167.52

7D

-3.8%

1Y

64.3%