EQ Resources (ASX:EQR) Adds Two Directors, Is The Valuation Already Too Rich?
EQ Resources (ASX:EQR) has drawn fresh attention after appointing two new Non-Executive Directors: mining engineer Nicole Brook and resources and finance executive Taki Dermedgoglou, in late August 2026.
These board appointments come after a very strong period for EQ Resources, with the share price at A$0.365 and a year to date share price return of 339.76%. The 1 year total shareholder return is very large at around 10x, and shorter term momentum has eased after recent gains.
Scan other mining and materials stocks that share EQ Resources' momentum and boardroom focus by checking our hand picked 30 best rare earth metal stocks in the sector.
Bulls see EQ Resources as a high growth tungsten producer with fresh board firepower, while bears point to the current loss and rapid share price rise. Which side does the valuation support next?
Most Popular Narrative: 46% Overvalued
EQ Resources is trading at A$0.365 against a fair value of A$0.25 in the most followed narrative, which frames the current price as ahead of that estimate and heavily tied to tungsten market tightness.
I think that with Tungsten prices having surged dramatically, and reports indicating a ~600% increase over the past 12 months, driven by increased restrictions. And on top of that the global tungsten market being valued at approximately US$16 billion, which is roughly 5% of the copper market, then you add in the demand required for defense & Technology, aerospace & electronics and Semiconductors & chips, coupled with the lack of new mines over the past 40 years, the valuation is very promising for the next 3, 5 or 10 years time.
Want to understand why this narrative still flags EQ Resources as rich at today’s price? The core assumptions sit in revenue expansion, profit margins and tungsten pricing power. The way those three inputs are combined may surprise you. The full narrative lays out the exact path that supports the A$0.25 fair value call.
Result: Fair Value of A$0.25 (OVERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, EQ Resources investors still face key risks if tungsten prices ease or new non Chinese supply ramps up faster than expected, which could challenge this upbeat thesis.
Find out about the key risks to this EQ Resources narrative.
Another View Using Our DCF Model
The user narrative suggests EQ Resources is priced at A$0.365 compared with a fair value estimate of A$0.25. Our DCF model indicates a different outcome. It points to a future cash flow value of A$2.67 per share, which appears significantly below this estimate at today’s price.
This gap between the narrative fair value and the DCF output raises a key question for investors. Which set of assumptions about tungsten pricing, project delivery and future cash generation seems more appropriate for EQ Resources over the next few years, and which may be too optimistic or too cautious.
Look into how the SWS DCF model arrives at its fair value.
Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out EQ Resources for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 10 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.
Next Steps
With such a mixed picture around EQ Resources and its valuation, it may be useful to move quickly and weigh the evidence from both sides yourself. To see both the potential upsides and the areas investors are considering in one place, review the 2 key rewards and 2 important warning signs
Looking for more EQ Resources style investment ideas?
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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