South32 Ltd
ASX:S32
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EV/EBITDA
Enterprise Value to EBITDA (EV/EBITDA) ratio compares a company`s total enterprise value to its earnings before interest, taxes, depreciation, and amortization. It shows how much investors are paying for each dollar of the company`s earnings, including both equity and debt.
Enterprise Value to EBITDA (EV/EBITDA) ratio compares a company`s total enterprise value to its earnings before interest, taxes, depreciation, and amortization. It shows how much investors are paying for each dollar of the company`s earnings, including both equity and debt.
Valuation Scenarios
If EV/EBITDA returns to its 3-Year Average (8.5), the stock would be worth AU$3.4 (23% downside from current price).
| Scenario | EV/EBITDA Value | Implied Price | Upside/Downside |
|---|---|---|---|
| Current Multiple | 11.1 | AU$4.43 |
0%
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| 3-Year Average | 8.5 | AU$3.4 |
-23%
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| 5-Year Average | 7.2 | AU$2.86 |
-35%
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| Industry Average | 12.1 | AU$4.82 |
+9%
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| Country Average | 16.5 | AU$6.57 |
+49%
|
Forward EV/EBITDA
Today’s price vs future ebitda
| Today's Enterprise Value | EBITDA | Forward EV/EBITDA | ||
|---|---|---|---|---|
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AU$19.9B
|
/ |
Jan 2026
$1.2B
|
= |
|
|
AU$19.9B
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/ |
Jun 2026
$1.9B
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= |
|
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AU$19.9B
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/ |
Jun 2027
$2.2B
|
= |
|
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AU$19.9B
|
/ |
Jun 2028
$2.2B
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= |
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Forward EV/EBITDA shows whether today’s EV/EBITDA still looks high or low once future ebitda are taken into account.
Peer Comparison
| Market Cap | EV/EBITDA | P/E | ||||
|---|---|---|---|---|---|---|
| AU |
|
South32 Ltd
ASX:S32
|
19.7B AUD | 11.1 | 44.1 | |
| AU |
|
BHP Group Ltd
ASX:BHP
|
282.8B AUD | 7.5 | 19.4 | |
| AU |
|
Rio Tinto Ltd
ASX:RIO
|
280.1B AUD | 8.4 | 20.1 | |
| UK |
|
Rio Tinto PLC
LSE:RIO
|
120.2B GBP | 7.5 | 15.9 | |
| MX |
|
Grupo Mexico SAB de CV
BMV:GMEXICOB
|
1.6T MXN | 9.6 | 18.9 | |
| CH |
|
Glencore PLC
LSE:GLEN
|
64.6B GBP | 11.3 | 235.5 | |
| SA |
|
Saudi Arabian Mining Company SJSC
SAU:1211
|
248.9B SAR | 18.1 | 33.9 | |
| CN |
|
CMOC Group Ltd
SSE:603993
|
432.8B CNY | 10 | 21.3 | |
| UK |
|
Anglo American PLC
LSE:AAL
|
42.9B GBP | 10.3 | -15.2 | |
| CN |
C
|
China Molybdenum Co Ltd
OTC:CMCLF
|
52.8B USD | 8.4 | 17.9 | |
| ZA |
A
|
African Rainbow Minerals Ltd
JSE:ARI
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46.7B ZAR | -77.3 | 36.2 |
Market Distribution
| Min | 0 |
| 30th Percentile | 10 |
| Median | 16.5 |
| 70th Percentile | 24.5 |
| Max | 6 797.5 |
Other Multiples
South32 Ltd
Glance View
South32 Ltd, like a page turned in the rich narrative of global mining, stands as a dynamic and independent metals and mining giant. Born out of a corporate demerger from BHP in 2015, South32 has cultivated a robust presence in the industry with operations spanning across continents—Australia, South America, and South Africa. The company produces a diverse suite of commodities, including alumina, aluminum, bauxite, energy and metallurgical coal, manganese, nickel, silver, lead, and zinc. This geographic and product diversity has strategically positioned South32 to navigate the cyclical nature of the mining sector, while also enabling it to tap into emerging demands for raw materials driven by the green energy transition and infrastructure development. Drilling deeper into its business model, South32’s financial lifeblood flows from the extraction and processing of these resources, which it sells to various industries worldwide. The company has honed its expertise in optimizing the profitability of its assets through disciplined operational performance, innovative technology integration, and a strong emphasis on sustainability, aiming to reduce its environmental footprint. By leveraging its well-established supply chains and comprehensive risk management strategies, South32 efficiently meets global demand. This blend of operational acumen and strategic foresight allows the company to generate robust revenue streams, ensuring it remains resilient in a sector marked by volatility and continuous evolution.
