CXO.AX Fair Value
What is the fair value of CXO.AX?
As of 2025-05-04, the Fair Value of Core Lithium Ltd (CXO.AX) is -0.13 AUD. This value is based on the Peter Lynch's Fair Value formula. With the current market price of 0.07 AUD, the upside of Core Lithium Ltd is -291.1%.
Is CXO.AX a good investment?
With the market price of 0.07 AUD and our fair value calculation, Core Lithium Ltd (CXO.AX) is not a good investment. Investing in CXO.AX stocks now will result in a potential loss of 291.1%.
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 | ||||||
| 06-2020 | 06-2021 | 06-2022 | 06-2023 | 06-2024 | 5Y Avg | |
| Net income | -4.39 | -2.91 | -7.47 | 10.81 | -207.01 | -42 |
| YoY growth | -82.4% | 33.6% | -156.4% | 244.8% | -2015% | -395.1% |
| Market Cap (mil) | EPS | Fair Value | Upside | ||
| a | |||||
Core Lithium Ltd | 148 | -0 | -0.13 | -291.1% | |
| Challenger Exploration Ltd | 135 | 0 | 1.11 | 1281.3% | |
| Market Cap (mil) | 148 |
| P/E | - |
| Forward P/E | - |
| EPS | -0.03 |
| Avg earnings growth rate | -395.1% |
| TTM earnings | -57 |
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.