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South32 Ltd
ASX:S32

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South32 Ltd
ASX:S32
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Price: 4.335 AUD -1.03% Market Closed
Market Cap: AU$19.4B

EV/OCF

9.4
Current
15%
More Expensive
vs 3-y average of 8.2

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
9.4
=
Enterprise Value
AU$19.9B
/
Operating Cash Flow
$1.4B

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
9.4
=
Enterprise Value
AU$19.9B
/
Operating Cash Flow
$1.4B

Valuation Scenarios

South32 Ltd is trading above its 3-year average

If EV/OCF returns to its 3-Year Average (8.2), the stock would be worth AU$3.78 (13% downside from current price).

Statistics
Positive Scenarios
2/4
Maximum Downside
-23%
Maximum Upside
+50%
Average Upside
6%
Scenario EV/OCF Value Implied Price Upside/Downside
Current Multiple 9.4 AU$4.34
0%
3-Year Average 8.2 AU$3.78
-13%
5-Year Average 7.2 AU$3.32
-23%
Industry Average 10.2 AU$4.73
+9%
Country Average 14.1 AU$6.51
+50%

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
AU
South32 Ltd
ASX:S32
19.6B AUD 9.4 43.2
AU
BHP Group Ltd
ASX:BHP
284.5B AUD 10.6 19.4
AU
Rio Tinto Ltd
ASX:RIO
279.2B AUD 11.9 19.7
UK
Rio Tinto PLC
LSE:RIO
119.9B GBP 10.8 15.9
CH
Glencore PLC
LSE:GLEN
65.5B GBP 19.9 238.8
MX
Grupo Mexico SAB de CV
BMV:GMEXICOB
1.5T MXN 15 18
SA
Saudi Arabian Mining Company SJSC
SAU:1211
248.9B SAR 24.6 33.9
CN
CMOC Group Ltd
SSE:603993
414.2B CNY 19.5 20.4
UK
Anglo American PLC
LSE:AAL
43.5B GBP 11.9 -15.4
CN
China Molybdenum Co Ltd
OTC:CMCLF
51.1B USD 16.5 17.3
ZA
African Rainbow Minerals Ltd
JSE:ARI
44.4B ZAR 6.2 34.5

Market Distribution

In line with most companies in Australia
Percentile
30th
Based on 1 376 companies
30th percentile
9.4
Low
0 — 9.3
Typical Range
9.3 — 24.1
High
24.1 —
Distribution Statistics
Australia
Min 0
30th Percentile 9.3
Median 14.1
70th Percentile 24.1
Max 9 251.5

South32 Ltd
Glance View

South32 Ltd, like a page turned in the rich narrative of global mining, stands as a dynamic and independent metals and mining giant. Born out of a corporate demerger from BHP in 2015, South32 has cultivated a robust presence in the industry with operations spanning across continents—Australia, South America, and South Africa. The company produces a diverse suite of commodities, including alumina, aluminum, bauxite, energy and metallurgical coal, manganese, nickel, silver, lead, and zinc. This geographic and product diversity has strategically positioned South32 to navigate the cyclical nature of the mining sector, while also enabling it to tap into emerging demands for raw materials driven by the green energy transition and infrastructure development. Drilling deeper into its business model, South32’s financial lifeblood flows from the extraction and processing of these resources, which it sells to various industries worldwide. The company has honed its expertise in optimizing the profitability of its assets through disciplined operational performance, innovative technology integration, and a strong emphasis on sustainability, aiming to reduce its environmental footprint. By leveraging its well-established supply chains and comprehensive risk management strategies, South32 efficiently meets global demand. This blend of operational acumen and strategic foresight allows the company to generate robust revenue streams, ensuring it remains resilient in a sector marked by volatility and continuous evolution.

S32 Intrinsic Value
5.487 AUD
Undervaluation 21%
Intrinsic Value
Price AU$4.335
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