VALU.CN
Valorem Resources Inc
Price:  
0.49 
CAD
Volume:  
10,000
Canada | Mining

VALU.CN Fair Value

-887.8 %
Upside

What is the fair value of VALU.CN?

As of 2025-07-11, the Fair Value of Valorem Resources Inc (VALU.CN) is -3.86 CAD. This value is based on the Peter Lynch's Fair Value formula. With the current market price of 0.49 CAD, the upside of Valorem Resources Inc is -887.8%.

Is VALU.CN a good investment?

With the market price of 0.49 CAD and our fair value calculation, Valorem Resources Inc (VALU.CN) is not a good investment. Investing in VALU.CN stocks now will result in a potential loss of 887.8%.

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

0.49 CAD
Stock Price
-3.86 CAD
Fair Price
FAIR VALUE CALCULATION

VALU.CN Fair Value

Peter Lynch's formula is:

VALU.CN Fair Value
= Earnings Growth Rate x TTM EPS
VALU.CN Fair Value
= 5 x -0.77
VALU.CN Fair Value
= -3.86

The earnings growth rate we use in the formula is the average growth rate of net income/earnings over the last 2 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
04-202204-20232Y Avg
Net income-3.49-15.43-9
YoY growth51.2%-342.3%-145.6%

VALU.CN Fair Value - Peers Benchmarking

Market Cap (mil)EPS Fair Value Upside
a
American Pacific Mining Corp5400.05-81.5%

VALU.CN Fair Value - Key Data

Market Cap (mil)10
P/E-
Forward P/E-
EPS-0.77
Avg earnings growth rate-145.6%
TTM earnings-15

VALU.CN 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.