Lynas Rare Earths Ltd
ASX:LYC

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Lynas Rare Earths Ltd
ASX:LYC
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Price: 18.415 AUD -6.57% Market Closed
Market Cap: AU$18.5B

EV/OCF

137.1
Current
75%
More Expensive
vs 3-y average of 78.5

Enterprise Value to Operating Cash Flow (EV/OCF) ratio compares a company`s total enterprise value to its operating cash flow. It shows how much investors are paying for each dollar of the company`s operating cash flow, including both equity and debt.

EV/OCF
137.1
=
Enterprise Value
AU$19.5B
/
Operating Cash Flow
AU$129m

Enterprise Value to Operating Cash Flow (EV/OCF) ratio compares a company`s total enterprise value to its operating cash flow. It shows how much investors are paying for each dollar of the company`s operating cash flow, including both equity and debt.

EV/OCF
137.1
=
Enterprise Value
AU$19.5B
/
Operating Cash Flow
AU$129m

Valuation Scenarios

Lynas Rare Earths Ltd is trading above its 3-year average

If EV/OCF returns to its 3-Year Average (78.5), the stock would be worth AU$10.54 (43% downside from current price).

Statistics
Positive Scenarios
0/4
Maximum Downside
-91%
Maximum Upside
No Upside Scenarios
Average Downside
53%
Scenario EV/OCF Value Implied Price Upside/Downside
Current Multiple 137.1 AU$18.42
0%
3-Year Average 78.5 AU$10.54
-43%
5-Year Average 31 AU$4.17
-77%
Industry Average 135.1 AU$18.14
-1%
Country Average 11.9 AU$1.6
-91%

Forward EV/OCF
Today’s price vs future operating cash flow

Not enough data available to calculate forward EV/OCF

Peer Comparison

All Multiples
EV/OCF
P/E
All Countries
Close
Market Cap EV/OCF P/E
MY
Lynas Rare Earths Ltd
ASX:LYC
19.8B AUD 137.1 215.8
AU
BHP Group Ltd
ASX:BHP
285.2B AUD 10.7 19.6
AU
Rio Tinto Ltd
ASX:RIO
281B AUD 11.9 19.8
UK
Rio Tinto PLC
LSE:RIO
121.2B GBP 10.7 15.8
MX
Grupo Mexico SAB de CV
BMV:GMEXICOB
1.6T MXN 15.2 18.2
CH
Glencore PLC
LSE:GLEN
66.1B GBP 19.9 237.6
SA
Saudi Arabian Mining Company SJSC
SAU:1211
248.9B SAR 24.6 33.9
CN
CMOC Group Ltd
SSE:603993
429.8B CNY 20.3 21.1
UK
Anglo American PLC
LSE:AAL
42.8B GBP 11.7 -15.1
CN
China Molybdenum Co Ltd
OTC:CMCLF
53B USD 17.1 17.9
ZA
African Rainbow Minerals Ltd
JSE:ARI
45.4B ZAR 6.4 35.2

Market Distribution

Higher than 95% of companies in Malaysia
Percentile
95th
Based on 364 companies
95th percentile
137.1
Low
0.3 — 7.4
Typical Range
7.4 — 19.2
High
19.2 —
Distribution Statistics
Malaysia
Min 0.3
30th Percentile 7.4
Median 11.9
70th Percentile 19.2
Max 44 111.4

Lynas Rare Earths Ltd
Glance View

Lynas Rare Earths Ltd. has carved out a unique niche in the global minerals market. It stands prominently due to its status as one of the only few non-Chinese entities capable of processing rare earth materials, which are critical to the production of high-tech goods ranging from smartphones to electric vehicles. The story of Lynas is deeply intertwined with the increasing demand for these minerals, driven by technological advancement and the push towards greener technologies. Mining its primary resources from the Mount Weld mine in Western Australia, Lynas extracts and refines rare earth elements, and its expansive processing facility in Malaysia provides the company a crucial competitive advantage. In a landscape dominated by geopolitical tensions and a push for supply chain diversification, Lynas has emerged as a critical player in ensuring that industries worldwide have access to these vital materials. The company generates revenue primarily by selling processed rare earth oxides to manufacturers in various sectors including renewable energy, automotive, and electronics. Its strategic focus on sustainable and responsible resource management further reinforces its reputation, as it continuously strives to meet regulatory standards and secure the trust of investors and stakeholders alike. Lynas thus stands as a testament to both strategic foresight and operational excellence in a swiftly evolving global market.

LYC Intrinsic Value
9.44 AUD
Overvaluation 49%
Intrinsic Value
Price AU$18.415
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