TECK Valuation

Teck Resources Ltd

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34.190

+0.42(1.244%)1D

Overview
Forecast
Valuation
Earnings

TECK Relative Valuation

TECK's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, TECK is overvalued; if below, it's undervalued.

Historical Valuation

Teck Resources Ltd (TECK) is now in the Fair zone, suggesting that its current forward PE ratio of 22.10 is considered Fairly compared with the five-year average of 13.43. The fair price of Teck Resources Ltd (TECK) is between 34.03 to 57.37 according to relative valuation methord.

Relative Value

Fair Zone

34.03-57.37

Current Price：34.19

Fair

22.10

Trailing

Forward

6.56

EV/EBITDA

Teck Resources Ltd. (TECK) has a current EV/EBITDA of 6.56. The 5-year average EV/EBITDA is 5.70. The thresholds are as follows: Strongly Undervalued below 1.13, Undervalued between 1.13 and 3.42, Fairly Valued between 7.99 and 3.42, Overvalued between 7.99 and 10.28, and Strongly Overvalued above 10.28. The current Forward EV/EBITDA of 6.56 falls within the Historic Trend Line -Fairly Valued range.

11.19

EV/EBIT

Teck Resources Ltd. (TECK) has a current EV/EBIT of 11.19. The 5-year average EV/EBIT is 8.49. The thresholds are as follows: Strongly Undervalued below -0.64, Undervalued between -0.64 and 3.93, Fairly Valued between 13.06 and 3.93, Overvalued between 13.06 and 17.63, and Strongly Overvalued above 17.63. The current Forward EV/EBIT of 11.19 falls within the Historic Trend Line -Fairly Valued range.

2.07

Teck Resources Ltd. (TECK) has a current PS of 2.07. The 5-year average PS is 1.78. The thresholds are as follows: Strongly Undervalued below 0.34, Undervalued between 0.34 and 1.06, Fairly Valued between 2.51 and 1.06, Overvalued between 2.51 and 3.23, and Strongly Overvalued above 3.23. The current Forward PS of 2.07 falls within the Historic Trend Line -Fairly Valued range.

7.09

P/OCF

Teck Resources Ltd. (TECK) has a current P/OCF of 7.09. The 5-year average P/OCF is 5.69. The thresholds are as follows: Strongly Undervalued below 0.23, Undervalued between 0.23 and 2.96, Fairly Valued between 8.42 and 2.96, Overvalued between 8.42 and 11.16, and Strongly Overvalued above 11.16. The current Forward P/OCF of 7.09 falls within the Historic Trend Line -Fairly Valued range.

209.65

P/FCF

Teck Resources Ltd. (TECK) has a current P/FCF of 209.65. The 5-year average P/FCF is 30.57. The thresholds are as follows: Strongly Undervalued below -67.58, Undervalued between -67.58 and -18.50, Fairly Valued between 79.65 and -18.50, Overvalued between 79.65 and 128.72, and Strongly Overvalued above 128.72. The current Forward P/FCF of 209.65 falls within the Strongly Overvalued range.

Teck Resources Ltd (TECK) has a current Price-to-Book (P/B) ratio of 0.94. Compared to its 3-year average P/B ratio of 1.11 , the current P/B ratio is approximately -15.19% higher. Relative to its 5-year average P/B ratio of 0.99, the current P/B ratio is about -4.22% higher. Teck Resources Ltd (TECK) has a Forward Free Cash Flow (FCF) yield of approximately -4.06%. Compared to its 3-year average FCF yield of -0.53%, the current FCF yield is approximately 667.15% lower. Relative to its 5-year average FCF yield of -2.73% , the current FCF yield is about 48.50% lower.

0.94

P/B

Median3y

1.11

Median5y

0.99

-4.06

FCF Yield

Median3y

-0.53

Median5y

-2.73

Competitors Valuation Multiple

The average P/S ratio for TECK's competitors is 6.70, providing a benchmark for relative valuation. Teck Resources Ltd Corp (TECK) exhibits a P/S ratio of 2.07, which is -69.05% above the industry average. Given its robust revenue growth of 12.26%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Carpenter Technology Corp

Performance Decomposition

Market capitalization of TECK decreased by 33.77% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 45.12 to 115.04.

The secondary factor is the Revenue Growth, contributed 12.26%to the performance.

Overall, the performance of TECK in the past 1 year is driven by P/E Change. Which is more unsustainable.

12.26%

1.80B → 2.02B

Revenue Growth

-201.01%

-4.94 → 4.99

Margin Expansion

154.98%

45.12 → 115.04

P/E Change

-33.77%