AVL.TO
Avalon Advanced Materials Inc
Price:  
0.04 
CAD
Volume:  
186,305
Canada | Metals & Mining

AVL.TO Fair Value

-253.9 %
Upside

What is the fair value of AVL.TO?

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%.

Is AVL.TO a good investment?

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.

0.04 CAD
Stock Price
-0.05 CAD
Fair Price
FAIR VALUE CALCULATION

AVL.TO Fair Value

Peter Lynch's formula is:

AVL.TO Fair Value
= Earnings Growth Rate x TTM EPS
AVL.TO Fair Value
= 5 x -0.01
AVL.TO Fair Value
= -0.05

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
08-201908-202008-202108-202208-20235Y 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%

AVL.TO Fair Value - Peers Benchmarking

Market Cap (mil)EPS Fair Value Upside
a
Euro Sun Mining Inc5600.05-67.6%

AVL.TO Fair Value - Key Data

Market Cap (mil)22
P/E-
Forward P/E-
EPS-0.01
Avg earnings growth rate-4.4%
TTM earnings-7

AVL.TO Fair Value - Formula's Origin

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.