ASX:HAV PE PEG Gauge Feb 14th 18
The metals and mining industry is trading at a PE ratio of 13.93x, relatively similar to the rest of the Australian stock market PE of 17.16x. This means the industry, on average, is fairly valued compared to the wider market – minimal expected gains and losses from mispricing here. Furthermore, the industry returned a similar 11.46% on equities compared to the market’s 11.83%. Since Havilah Resources’s earnings doesn’t seem to reflect its true value, its PE ratio isn’t very useful. A loose alternative to gauge Havilah Resources’s value is to assume the stock should be relatively in-line with its industry.
Next Steps:
Havilah Resources has been a metals and mining industry laggard in the past year. If Havilah Resources has been on your watchlist for a while, now may be a good time to dig deeper into the stock. Although it delivered lower growth relative to its materials peers in the near term, the market may be pessimistic on the stock, leading to a potential undervaluation. However, before you make a decision on the stock, I suggest you look at Havilah Resources’s fundamentals in order to build a holistic investment thesis.
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.