P/E is very important I agree. It includes Total profits, Number of shares, and Share price. Nothing else can be looked at quickly and totally understand share value. That said where did you find that Lynas's P/E was 800? Currently it is 167 the highest it has ever been. That number uses Second half 2024 and first half 2025. Even if you want to make the P/E very high by using 2 X first half 2025 market cap divided by 2 X 6M, $8.3B/ $12M =666. Even the dot coms years ago, banks, Tesla at its high, and AI, Never had Pe's over 400. Using trailing 12 month earnings. Your using 800 Shows a total lack of what PEs are and no financial understanding at all.
If SP stays between $8.00 and $9.00 the 12 month trailing PE will most like go just over 200 With the 2025 AR. Simple reason is Profits will be much lower in 2025 than 2024 making for the third year in a row of declining profits.
Why do I think this? In 2024 profits were $74M first half 2025 were $5.9M for simplicity I use $6 M. So to equal 2024 they will have to make $68 Minimum second half. That would be 11X higher than First half. higher than either First or second half 2024. for accuracy First half 2024 $39m. 68M / 39M is a jump of 1.7X and 2nd half was $33M a jump of 2.1X. It is not going to happen!!!
REE prices have gone up but only a little from 2024. Production dropped from Q1to Q2. Q1 and Q2 Lynas made 3KT of NdPr. Lets go crazy and assume production is higher than even AL has forecast 1.8 KT for Q3 and 2.0KT For Q4. That is a total of 6.8KT for year, less than NEXT. Even with that I doubt they would make $25M in Second half so $31M for year VS 2024 $74M. PE will go to about 200 with a $8.00 share price. 25% of your 800 number. Please try to think and do a little research before posting. In past when I have pointed out gross errors like this you have said you have a deep understanding of Lynas Dynamics (I do not really know what that means) but no finance understanding. If that is true Don't post about things you admit you have poor understanding on.
LYC Price at posting:
$8.84 Sentiment: Sell Disclosure: Not Held
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