Is Lynas Rare Earths a Good Deal Following This Week's 19% Decline in Share Price?

Written by Emily J. Thompson, Senior Investment Analyst

Source: Yahoo Finance

Updated: Nov 02 2025

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Source: Yahoo Finance

Stock Performance: Lynas Rare Earths has seen a significant pullback in its stock price, down 19.0% in the last week and 12.9% over the past month, despite a strong 133.5% rally year-to-date and a 96.0% gain over the last year.
Valuation Insights: The Discounted Cash Flow (DCF) model suggests Lynas shares are undervalued by 26.4%, with a projected intrinsic value of A$20.72, while the Price-to-Sales (P/S) ratio indicates the stock is overvalued at 27.58x compared to its fair ratio of 4.38x.
Future Projections: Analysts project that Lynas's Free Cash Flow could rise from a negative A$404 million to approximately A$617 million by June 2028, potentially exceeding A$1.2 billion by 2035, as the sector matures.
Investment Narratives: Investors are encouraged to create personal narratives that combine their perspectives on Lynas's future with financial forecasts, helping them make informed decisions based on the company's evolving story and market conditions.

About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.