VALU.CN Fair Value
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.
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 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 | |||
| 04-2022 | 04-2023 | 2Y Avg | |
| Net income | -3.49 | -15.43 | -9 |
| YoY growth | 51.2% | -342.3% | -145.6% |
| Market Cap (mil) | EPS | Fair Value | Upside | ||
| a | |||||
Valorem Resources Inc | 10 | -0.8 | -3.86 | -887.8% | |
| American Pacific Mining Corp | 54 | 0 | 0.05 | -81.5% | |
| Market Cap (mil) | 10 |
| P/E | - |
| Forward P/E | - |
| EPS | -0.77 |
| Avg earnings growth rate | -145.6% |
| TTM earnings | -15 |
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.