Largo Resources Valuation
| LGO Stock | CAD 1.98 0.01 0.51% |
Based on Macroaxis valuation methodology, the firm appears to be fairly valued. Largo Resources secures a last-minute Real Value of C$1.98 per share. The latest price of the firm is C$1.98. Our model forecasts the value of Largo Resources from analyzing the firm fundamentals such as Current Valuation of 298.45 M, profit margin of (0.57) %, and Return On Equity of -0.38 as well as examining its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Largo Resources' valuation include:
Price Book 0.9299 | Enterprise Value | Enterprise Value Ebitda 47.9474 | Price Sales 1.4808 | Forward PE 7.9114 |
Fairly Valued
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 1.98 | Real 1.98 | Hype 2.13 | Naive 2.17 |
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 |
|
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 estimated to have takeover price of 298.45 M with market capitalization of 165.67 M, debt of 17.5 M, and cash on hands of 78.22 M. Please note that takeover price may be misleading and is a subject to mistakes in financial statements. We encourage investors to thoroughly investigate all of the Largo Resources fundamentals before making investing decisions based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
298.45 M | 165.67 M | 17.5 M | 78.22 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 0.93. 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 1.35. 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 March.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 C$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 March. 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 15.6 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. Consequently, these institutions are subject to different rules and regulations than regular investors in Largo Resources. Please watch out for any change in the institutional holdings of Largo Resources as this could mean something significant has changed or is about to change at the company. 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 revenue of 124.92 M. Net Loss for the year was (50.56 M) with profit before overhead, payroll, taxes, 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) |
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 inflation. To learn how to invest in Largo Stock, please use our How to Invest in Largo Resources guide.You can also try the ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.