Sprott Stock Surges 119% YTD but Valuation Signals Overvaluation
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2h ago
0mins
Source: Yahoo Finance
- Stock Performance: Sprott's stock has surged by 130.1% over the past year and 119% year-to-date, reflecting strong investor interest in precious metals and resource strategies, yet the current price suggests high expectations may be priced in.
- Valuation Analysis: The Excess Returns model estimates Sprott's intrinsic value at approximately CA$38.62 per share, indicating it is overvalued by 255.2% compared to the current market price, which could undermine future investor confidence.
- PE Ratio Comparison: Sprott's PE ratio stands at 51.4x, significantly above the capital markets industry average of 8.6x, indicating strong market expectations for future growth but also suggesting a potentially stretched valuation.
- Investor Sentiment: Despite Sprott's strong stock performance, it scores 0/6 on valuation checks, indicating it is not viewed as undervalued by traditional metrics, which may lead investors to reassess its attractiveness as an investment.
SII
$100.25+Infinity%1D
Analyst Views on SII
Wall Street analysts forecast SII stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for SII is 87.65 USD with a low forecast of 87.65 USD and a high forecast of 87.65 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
1 Analyst Rating
1 Buy
0 Hold
0 Sell
Moderate Buy
Current: 101.200
Low
87.65
Averages
87.65
High
87.65
Current: 101.200
Low
87.65
Averages
87.65
High
87.65
About SII
Sprott Inc. is a Canada-based global asset manager focused on precious metals and critical materials investments. Its investment strategies include exchange-listed products, managed equities and private strategies. Its segments include Exchange listed products, Managed equities, Private strategies and Corporate. The Exchange listed products segment provides management services to its closed-end physical trusts and exchange-traded funds (ETFs). The Managed equities segment provides management services to its alternative investment strategies managed in-house and on a sub-advisory basis. The Private strategies segment provides lending and streaming activities through limited partnership vehicles. Its Corporate segment provides capital, balance sheet management and enterprise shared services to its subsidiaries. Its subsidiaries include Sprott Asset Management LP, Sprott U.S. Holdings Inc., Sprott Resource Streaming and Royalty Corporation, Sprott Resource Lending Corp. and others.
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.
