As of 2025-07-06, the Fair Value of Avalon Advanced Materials Inc (AVL.TO) is -0.05 CAD. This value is based on the Peter Lynch's Fair Value formula. With the current market price of 0.04 CAD, the upside of Avalon Advanced Materials Inc is -253.9%.
With the market price of 0.04 CAD and our fair value calculation, Avalon Advanced Materials Inc (AVL.TO) is not a good investment. Investing in AVL.TO stocks now will result in a potential loss of 253.9%.
Note: valuation result may not be accurate due to the company's negative EPS.
Peter Lynch's formula is:
The earnings growth rate we use in the formula is the average growth rate of net income/earnings over the last 5 years. If the average growth rate is smaller than 5%, we set it to 5%. If it is larger than 25%, we set it to 25%. If the TTM EPS is negative, Peter Lynch Fair Value's result can be unreliable.
Historical Earnings | ||||||
08-2019 | 08-2020 | 08-2021 | 08-2022 | 08-2023 | 5Y Avg | |
Net income | -3.39 | -5.37 | -3.76 | -3.95 | -3.32 | -4 |
YoY growth | -4.6% | -58.4% | 30% | -5.1% | 15.9% | -4.4% |
Market Cap (mil) | EPS | Fair Value | Upside | ||
a | |||||
Avalon Advanced Materials Inc | 22 | -0 | -0.05 | -253.9% | |
Euro Sun Mining Inc | 56 | 0 | 0.05 | -67.6% |
Market Cap (mil) | 22 |
P/E | - |
Forward P/E | - |
EPS | -0.01 |
Avg earnings growth rate | -4.4% |
TTM earnings | -7 |
Peter Lynch is one of the most legendary investors/fund managers of all time. His philosophy for stock investing is very simple and straightforward: he invests in stocks that are undervalued, meaning its P/E is less than or equal to its earnings growth rate. He believes that if a stock is trading at its fair value, the PEG ratio, which was also invented by him, should be 1.
Therefore, his formula to determine a company's fair value is:
Peter Lynch Fair Value = Earnings Growth Rate * EPS * PEG
PEG is set to 1 so we can ignore it in the calculation. Based on the formula, if the earnings growth rate of a company is 15%, Peter Lynch is willing to buy its share up to P/E = 15.