MDI.AX
Middle Island Resources Ltd
Price:  
0.02 
AUD
Volume:  
564,261
Australia | Metals & Mining

MDI.AX Fair Value

-246.3 %
Upside

What is the fair value of MDI.AX?

As of 2025-07-06, the Fair Value of Middle Island Resources Ltd (MDI.AX) is -0.03 AUD. This value is based on the Peter Lynch's Fair Value formula. With the current market price of 0.02 AUD, the upside of Middle Island Resources Ltd is -246.3%.

Is MDI.AX a good investment?

With the market price of 0.02 AUD and our fair value calculation, Middle Island Resources Ltd (MDI.AX) is not a good investment. Investing in MDI.AX stocks now will result in a potential loss of 246.3%.

Note: valuation result may not be accurate due to the company's negative EPS.

0.02 AUD
Stock Price
-0.03 AUD
Fair Price
FAIR VALUE CALCULATION

MDI.AX Fair Value

Peter Lynch's formula is:

MDI.AX Fair Value
= Earnings Growth Rate x TTM EPS
MDI.AX Fair Value
= 5 x -0.01
MDI.AX Fair Value
= -0.03

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
06-202006-202106-202206-202306-20245Y Avg
Net income-3.17-6.824.07-5.3-1.66-3
YoY growth-19.6%-114.9%159.6%-230.2%68.6%-27.3%

MDI.AX Fair Value - Peers Benchmarking

Market Cap (mil)EPS Fair Value Upside
a

MDI.AX Fair Value - Key Data

Market Cap (mil)6
P/E-
Forward P/E-
EPS-0.01
Avg earnings growth rate-27.3%
TTM earnings-2

MDI.AX 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.