AIM:BZT PE PEG Gauge Jan 8th 18
metals and mining companies are typically trading at a PE of 13x, lower than the rest of the UK stock market PE of 18x. This means the industry, on average, is relatively undervalued compared to the wider market – a potential mispricing opportunity here! Though, the industry did returned a lower 9.77% compared to the market’s 12.77%, which may explain the lower relative valuation. On the stock-level, Bezant Resources is trading at a lower PE ratio of 0x, making it cheaper than the average metals and mining stock.
What this means for you:
Are you a shareholder? Metals and mining stocks are currently expected to grow faster than the average stock on the index. This means if you’re overweight in this sector, your portfolio will be tilted towards high-growth. Furthermore, the sector is trading at a discount to the market, providing an opportune time to accumulate more shares in metals and mining.
Are you a potential investor? If you’ve been keeping an eye on the metals and mining sector, now is the right time to dive deeper into the stock-level. Given the high growth prospects, as well as the lower PE relative to the broader market, there is plenty of opportunity to profit from growth in addition to undervaluation.
For a deeper dive into Bezant Resources’s stock, take a look at the company’s latest free analysis report to find out more on its financial health and other fundamentals. Interested in other basic materials stocks instead? Use our free playform to see my list of over 2000 other basic materials companies trading on the market.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.