• EN

    • -+ 0.00%
    -+ 0.00%
    -+ 0.00%

    ERAMET (ENXTPA:ERA) Restarts Weda Bay Mining On A Valuation Story Still Trading Cheap

    Simply Wall St·09/11/2026 13:21:18
    Listen to the news

    Eramet (ENXTPA:ERA) has restarted mining at PT Weda Bay Nickel in Indonesia after a four month halt, a move that directly affects nickel ore volumes and future external sales guidance.

    For context, ERAMET’s share price has retreated over the year despite today’s €45.68 level. The 90-day share price return is down 17.17% and the year-to-date share move is down 25.84%, while the 1-year total shareholder return has fallen a milder 1.30%.

    Scan how ERAMET compares to other producers exposed to metals and mining cycles by running the hand picked 29 best rare earth metal stocks alongside this latest Weda Bay update.

    Eramet now trades at a clear discount to both analyst targets and estimated fair value, raising a simple issue: Is the recent Weda Bay restart enough to justify that gap staying this wide?

    Preferred Price-to-Sales of 0.4x: Is it justified?

    The market currently values ERAMET at a P/S of 0.4x, which screens as cheap relative to peers even after the share price slide to €45.68.

    The price to sales ratio compares the equity value of a business to the revenue it generates. For a metals and mining group like ERAMET, where earnings can swing sharply with commodity cycles, investors often lean on P/S to cut through short term profit volatility.

    On that yardstick, ERAMET screens as good value. It trades at 0.4x sales versus a European metals and mining industry average of 1.2x and a peer average of 1.4x. Against an estimated fair P/S of 2.3x, the current multiple sits at a steep discount that the market could eventually move towards if sentiment and fundamentals line up.

    To understand how that fair multiple is derived quantitatively, and what it implies for ERAMET, check the Explore the SWS fair ratio for ERAMET.

    Result: Price-to-Sales of 0.4x (UNDERVALUED)

    Still, ERAMET carries clear risks, including the current net loss of €520 million and heavy exposure to cyclical manganese and nickel demand, which could keep the discount in place.

    Find out about the key risks to this ERAMET narrative.

    Another View on ERAMET’s Value

    The simple revenue multiple presents ERAMET as inexpensive. A different lens tells a similar story. Our DCF model estimates future cash flows at about €75.08 per share, compared with the current €45.68 price, which still indicates a potentially undervalued stock. The key question is whether those cash flow assumptions remain realistic if Weda Bay or other assets encounter additional challenges.

    For a closer look at how those projected cash flows are modeled in practice, check the Look into how the SWS DCF model arrives at its fair value..

    ERA Discounted Cash Flow as at Sep 2026
    ERA Discounted Cash Flow as at Sep 2026

    Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out ERAMET 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 183 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

    Mixed signals around ERAMET’s value story create urgency. Before the market settles on a narrative, pull up the data, check the 1 key reward and 1 important warning sign, and weigh both sides through the 3 key rewards and 1 important warning sign.

    Looking for more ERAMET investment ideas?

    If ERAMET has you rethinking where opportunities might be hiding, do not stop with a single ticker. Cast the net wider now so you are not reacting after the next move.

    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.