All of you longs have been posting very serious and accurate info about fmg's metrics being so much better than Rio's or BHP's but its valuation is in the toilet.
What is really happening here in my view is that the others for what ever reason are viewed as more diversified and therefore much less risky than FMG (with BHP thats understandable , but with RIO's 88% of its income from iron ore - its the direct comparator). However what is happening is that the risk premium is way way too high relative to the actual risk.
How we get it rerated to a comparable valuation basis to RIO will be a function of three factors
time;
dividends;
diversification.
Perhaps what might have a greater impact on share prices than a buy back would be a good diversification.
Iron Ore Price, page-15793
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Last
$19.54 |
Change
-0.370(1.86%) |
Mkt cap ! $60.16B | |||
| Open | High | Low | Value | Volume |
| $19.52 | $19.75 | $19.29 | $225.1M | 11.80M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 1 | 2000 | $19.52 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $19.54 | 6420 | 1 |
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| Last trade - 16.10pm 18/10/2024 (20 minute delay) ? |
| FMG (ASX) Chart |