Largo Resources Valuation
| LGO Stock | USD 1.61 0.11 6.40% |
Based on Macroaxis valuation methodology, the firm appears to be undervalued. Largo Resources secures a last-minute Real Value of $2.02 per share. The latest price of the firm is $1.61. Our model forecasts the value of Largo Resources from analyzing the firm fundamentals such as Profit Margin of (0.57) %, return on equity of -0.38, and Current Valuation of 253.63 M as well as examining its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Largo Resources' valuation include:
Price Book 1.1855 | Enterprise Value | Enterprise Value Ebitda 35.512 | Price Sales 1.2668 | Forward PE 4.5208 |
Undervalued
Today
Please note that Largo Resources' price fluctuation is dangerous at this time. Calculation of the real value of Largo Resources is based on 3 months time horizon. Increasing Largo Resources' time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Since Largo Resources is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Largo Stock. However, Largo Resources' intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 1.61 | Real 2.02 | Target 3.1 | Hype 1.65 | Naive 1.84 |
The intrinsic value of Largo Resources' stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Largo Resources' stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of Largo Resources helps investors to forecast how Largo stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Largo Resources more accurately as focusing exclusively on Largo Resources' fundamentals will not take into account other important factors: Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Largo Resources' intrinsic value based on its ongoing forecasts of Largo Resources' financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Largo Resources' closest peers.
Largo Resources Cash |
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Largo Valuation Drivers Correlation
Many accounts on the financial statements of Largo Resources are highly interrelated and sometimes correlated. Consequently, when conducting Largo's valuation analysis, one should examine all of the accounts reported to obtain a complete picture of its financial situation. We provide a unique feature to present a conventional correlation table purposely composed against different valuation-related drivers of Largo
Click cells to compare fundamentals
Largo Resources Total Value Analysis
Largo Resources is now forecasted to have company total value of 253.63 M with market capitalization of 141.73 M, debt of 17.5 M, and cash on hands of 62.71 M. Please note that company total value may be misleading and is a subject to accounting gimmicks. We encourage investors to carefully check all of the Largo Resources fundamentals before making security assessment based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
253.63 M | 141.73 M | 17.5 M | 62.71 M |
Largo Resources Investor Information
About 53.0% of the company shares are owned by institutional investors. The company has price-to-book ratio of 1.19. Typically companies with comparable Price to Book (P/B) are able to outperform the market in the long run. Largo Resources recorded a loss per share of 0.99. The entity had not issued any dividends in recent years. The firm had 1:10 split on the 8th of March 2021. Based on the key indicators related to Largo Resources' liquidity, profitability, solvency, and operating efficiency, Largo Resources is not in a good financial situation at the present time. It has a very high likelihood of going through financial trouble in April.Largo Resources Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Largo Resources has an asset utilization ratio of 39.2 percent. This suggests that the Company is making $0.39 for each dollar of assets. An increasing asset utilization means that Largo Resources is more efficient with each dollar of assets it utilizes for everyday operations.Largo Resources Profitability Analysis
Based on Largo Resources' profitability indicators, Largo Resources may not be well positioned to generate adequate gross income at the present time. It has a very high likelihood of underperforming in April. Profitability indicators assess Largo Resources' ability to earn profits and add value for shareholders.Net Loss | First Reported 2002-03-31 | Previous Quarter -5.7 M | Current Value -36.6 M | Quarterly Volatility 15.7 M |
For Largo Resources profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Largo Resources to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Largo Resources utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Largo Resources's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Largo Resources over time as well as its relative position and ranking within its peers.
Largo Resources Earnings per Share Projection vs Actual
By analyzing Largo Resources' earnings estimates, investors can diagnose different trends across Largo Resources' analyst sentiment over time as well as compare current EPS estimates against different timeframes. Please be aware that the consensus of earnings estimates for Largo Resources is based on EPS before non-recurring items and includes expenses related to employee stock options.Largo Resources Ownership Allocation
Largo Resources maintains a total of 83.67 Million outstanding shares. Over half of Largo Resources' outstanding shares are owned by institutional investors. These institutional investors are typically referred to as corporate investors that shop for positions in a given instrument to benefit from reduced trade commissions. Please note that no matter how many assets the company has, if the real value of the firm is less than the current market value, you may not be able to make money on it.Largo Resources Profitability Analysis
The company reported the last year's revenue of 124.92 M. Reported Net Loss for the year was (50.56 M) with profit before taxes, overhead, and interest of 779 K.About Largo Resources Valuation
We use absolute and relative valuation methodologies to arrive at the intrinsic value of Largo Resources. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Largo Resources based exclusively on its fundamental and basic technical indicators. By analyzing Largo Resources's financials, quarterly and monthly indicators, and their related drivers, we attempt to find the most accurate representation of Largo Resources's intrinsic value. As compared to an absolute model, our relative valuation model uses a comparative analysis of Largo Resources. We calculate exposure to Largo Resources's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Largo Resources's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | -24 M | -22.8 M | |
| Pretax Profit Margin | (0.51) | (0.54) | |
| Operating Profit Margin | (0.33) | (0.35) | |
| Net Loss | (0.36) | (0.38) | |
| Gross Profit Margin | (0.15) | (0.14) |
Largo Resources Growth Indicators
Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines.
| Common Stock Shares Outstanding | 64.1 M | |
| Quarterly Earnings Growth Y O Y | 1.153 | |
| Forward Price Earnings | 4.5208 |
Largo Resources Current Valuation Indicators
Largo Resources' valuation analysis is a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Largo Resources' valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Largo Resources, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Largo Resources' valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Largo Resources' worth.When determining whether Largo Resources offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Largo Resources' financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Largo Resources Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Largo Resources Stock: Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Largo Resources. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in census. To learn how to invest in Largo Stock, please use our How to Invest in Largo Resources guide.You can also try the Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Will Diversified Metals & Mining sector continue expanding? Could Largo diversify its offerings? Factors like these will boost the valuation of Largo Resources. Expected growth trajectory for Largo significantly influences the price investors are willing to assign. Accurate valuation requires analyzing both current fundamentals and future growth trajectories. Every Largo Resources data point contributes insight, yet successful analysis hinges on identifying the most consequential variables.
Quarterly Earnings Growth 1.153 | Earnings Share (0.99) | Revenue Per Share | Quarterly Revenue Growth 0.112 | Return On Assets |
Investors evaluate Largo Resources using market value (trading price) and book value (balance sheet equity), each telling a different story. Calculating Largo Resources' intrinsic value - the estimated true worth - helps identify when the stock trades at a discount or premium to fair value. Seasoned market participants apply comprehensive analytical frameworks to derive fundamental worth and identify mispriced opportunities. External factors like market trends, sector rotation, and investor psychology can cause Largo Resources' market price to deviate significantly from intrinsic value.
Understanding that Largo Resources' value differs from its trading price is crucial, as each reflects different aspects of the company. Evaluating whether Largo Resources represents a sound investment requires analyzing earnings trends, revenue growth, technical signals, industry dynamics, and expert forecasts. Conversely, Largo Resources' market price signifies the transaction level at which participants voluntarily complete trades.