African Rainbow Minerals Ltd
JSE:ARI
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African Rainbow Minerals Ltd
JSE:ARI
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Intrinsic Value
The intrinsic value of African Rainbow Minerals Ltd (ARI) under the Base Case is 12 674.97 Zac per share. Compared with the current market price of 15 070 Zac, the stock appears Overvalued by 16% .
The intrinsic value is calculated using the DCF method. The model assumes revenue returns to growth: about 19% a year over the next five years, after falling about 5% a year over the last five years. If revenue grew at its five-year pace of -5%, the estimate would be about Zac 3,828.
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Cheap or expensive for this stock?
This block shows whether today’s valuation is cheap or expensive compared with the stock’s own history, and what happened after similar valuations in the past.
We compare the gap between the stock’s price and our estimated value over time.
- Undervalued can still be historically expensive. The stock may trade below our estimated value, but usually offer an even bigger discount.
- Overvalued can still be historically cheap. The stock may trade above our estimated value, but usually carry an even higher premium.
Market expectations can differ from our model, which may not fully capture everything affecting the price. That is why some stocks regularly trade above our estimated value and others below it.
The scale and chart show how today’s valuation compares with the past. The cards summarize past returns and waiting times until the stock stopped being cheap or expensive. This can happen because the price changed, our estimated value changed, or both.
Only completed periods are included. These are past results, not forecasts. The usual historical range does not necessarily mean fair value.
Fundamental Analysis
What African Rainbow Minerals Does
African Rainbow Minerals Ltd is a South African mining company that owns stakes in mines that produce platinum group metals, iron ore, manganese, coal, and nickel. It does not sell finished consumer products; instead, it helps supply the raw materials used by steelmakers, automakers, power users, and other heavy industries. Its business is centered on extracting minerals from the ground, processing them to marketable form, and selling them into commodity markets.
- Headquarters
- South Africa ZA
- Employees
- 13 024
- IPO date
- Jul 1, 1992
Earnings Waterfall
African Rainbow Minerals Ltd
The intrinsic value for African Rainbow Minerals Ltd (ARI) under the Base Case is 12 674.97 Zac.
Compared with the current market price of 15 070 Zac, the stock appears Overvalued by 16% .