AKE Relative Valuation - Allkem Ltd - Alpha Spread
A

Allkem Ltd
ASX:AKE

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Allkem Ltd
ASX:AKE
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Price: 9.83 AUD -5.57% Market Closed
Market Cap: 6.3B AUD
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Relative Value

The Relative Value of one AKE stock under the Base Case scenario is 19.03 AUD. Compared to the current market price of 9.83 AUD, Allkem Ltd is Undervalued by 48%.

Relative Value is the estimated value of a stock based on various valuation multiples like P/E and EV/EBIT ratios. It offers a quick snapshot of a stock's valuation in relation to its peers and historical norms.

AKE Relative Value
Base Case
19.03 AUD
Undervaluation 48%
Relative Value
Price
A
Worst Case
Base Case
Best Case

Valuation Multiples

vs History
55
vs Industry
41
Median 3Y
5.3
Median 5Y
4.5
Industry
1.7
Forward
3.6
vs History
26
vs Industry
21
Median 3Y
9.5
Median 5Y
-23.6
Industry
15.6
Forward
11.5
vs History
36
vs Industry
23
Median 3Y
6.7
Median 5Y
5.1
Industry
8.9
vs History
26
vs Industry
12
Median 3Y
18.9
Median 5Y
14.1
Industry
14.6
vs History
57
vs Industry
45
Median 3Y
1.7
Median 5Y
1.6
Industry
1.4
vs History
55
vs Industry
42
Median 3Y
4.9
Median 5Y
4.1
Industry
2.1
Forward
3.1
vs History
46
vs Industry
56
Median 3Y
6.1
Median 5Y
3.6
Industry
7.1
vs History
46
vs Industry
25
Median 3Y
6.9
Median 5Y
4.5
Industry
10
Forward
5.6
vs History
46
vs Industry
25
Median 3Y
6.9
Median 5Y
4.5
Industry
12.9
Forward
6.8
vs History
36
vs Industry
27
Median 3Y
6.1
Median 5Y
4.5
Industry
10.2
vs History
17
vs Industry
13
Median 3Y
13.8
Median 5Y
-10.4
Industry
13
vs History
57
vs Industry
52
Median 3Y
1.2
Median 5Y
1.1
Industry
1.3

Multiples Across Competitors

AKE Competitors Multiples
Allkem Ltd Competitors

All Multiples
P/S
P/E
EV/EBITDA
EV/EBIT
All Countries
Close
Market Cap P/S P/E EV/EBITDA EV/EBIT
AU
Allkem Ltd
ASX:AKE
6.3B AUD 3.5 9.7 4.6 4.6
AU
BHP Group Ltd
NYSE:BHP
136.9B USD 2.5 17.3 5 6.1
AU
Rio Tinto Ltd
ASX:RIO
183.4B AUD 2.3 11.6 6 8.2
UK
Rio Tinto PLC
NYSE:RIO
103.4B USD 1.9 9.6 5 6.8
CH
Glencore PLC
LSE:GLEN
46B GBP 0.3 -117.4 199.5 483.8
MX
Grupo Mexico SAB de CV
BMV:GMEXICOB
799.9B MXN 2.7 11.8 5.6 6.7
SA
Saudi Arabian Mining Company SJSC
SAU:1211
150B SAR 5.2 53.3 17 32.5
UK
Anglo American PLC
LSE:AAL
28.5B GBP 1.3 -22.9 96.7 140.6
ZA
African Rainbow Minerals Ltd
JSE:ARI
34.8B Zac 0 0 0 0
IN
Hindustan Zinc Ltd
NSE:HINDZINC
2.1T INR 7.1 26 14.5 19.2
CA
Teck Resources Ltd
NYSE:TECK
25.4B USD 2.2 23.5 7.9 13.6

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