Lynas Rare Earths Ltd
ASX:LYC

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Lynas Rare Earths Ltd
ASX:LYC
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Price: 18.19 AUD -0.16% Market Closed
Market Cap: AU$18.3B

P/OCF

136.1
Current
69%
More Expensive
vs 3-y average of 80.3

Price to Operating Cash Flow (P/OCF) ratio compares a company`s market value to the cash it generates from its core operations.

P/OCF
136.1
=
Market Cap
AU$19.5B
/
Operating Cash Flow
AU$129m

Price to Operating Cash Flow (P/OCF) ratio compares a company`s market value to the cash it generates from its core operations.

P/OCF
136.1
=
Market Cap
AU$19.5B
/
Operating Cash Flow
AU$129m

Valuation Scenarios

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

If P/OCF returns to its 3-Year Average (80.3), the stock would be worth AU$10.74 (41% downside from current price).

Statistics
Positive Scenarios
0/4
Maximum Downside
-92%
Maximum Upside
No Upside Scenarios
Average Downside
57%
Scenario P/OCF Value Implied Price Upside/Downside
Current Multiple 136.1 AU$18.19
0%
3-Year Average 80.3 AU$10.74
-41%
5-Year Average 33.4 AU$4.47
-75%
Industry Average 111.6 AU$14.92
-18%
Country Average 10.8 AU$1.44
-92%

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

Not enough data available to calculate forward P/OCF

Peer Comparison

All Multiples
P/OCF
P/E
All Countries
Close
Market Cap P/OCF P/E
MY
Lynas Rare Earths Ltd
ASX:LYC
18.3B AUD 136.1 213.2
AU
BHP Group Ltd
ASX:BHP
284.9B AUD 10.2 19.6
AU
Rio Tinto Ltd
ASX:RIO
278.6B AUD 11.8 20
UK
Rio Tinto PLC
LSE:RIO
119.4B GBP 9.4 15.8
MX
Grupo Mexico SAB de CV
BMV:GMEXICOB
1.6T MXN 14.9 17.9
CH
Glencore PLC
LSE:GLEN
64.8B GBP 15.2 236.3
SA
Saudi Arabian Mining Company SJSC
SAU:1211
248.9B SAR 22.8 33.9
CN
CMOC Group Ltd
SSE:603993
414.4B CNY 19.9 20.4
UK
Anglo American PLC
LSE:AAL
42.8B GBP 10.3 -15.1
CN
China Molybdenum Co Ltd
OTC:CMCLF
52.2B USD 17.2 17.7
ZA
African Rainbow Minerals Ltd
JSE:ARI
44.5B ZAR 7.8 34.6

Market Distribution

Higher than 95% of companies in Malaysia
Percentile
95th
Based on 372 companies
95th percentile
136.1
Low
0.4 — 6.5
Typical Range
6.5 — 18.1
High
18.1 —
Distribution Statistics
Malaysia
Min 0.4
30th Percentile 6.5
Median 10.8
70th Percentile 18.1
Max 44 044.5

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 48%
Intrinsic Value
Price AU$18.19
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