MODEL VERDICT
Largo Inc. (LGO)
Relative Valuation•Peer multiples, Monte Carlo simulation & quality-adjusted fair value
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Composite score derived from valuation, quality, and risk factors
Quantitative model thresholds · For educational and research purposes only
| Methodology | Fair Value | vs Current | Weight | Quality | Status |
|---|---|---|---|---|---|
| EV To Revenue 14 industry peers | $6.64 | +297.6% | 4% | B | Data |
| Price / Sales 14 industry peers | $6.24 | +273.7% | 3% | B | Model Driven |
| Weighted Output Blended model output | $6.52 | +290.5% | 100% | 49 | SIGNIFICANTLY UNDERVALUED |
Cross-sectional regression predicting expected multiples based on growth, margins, ROIC, and beta.
| Multiple | Avg | Median | Min | Max | Std |
|---|---|---|---|---|---|
| P/E Ratio | 41.55 | 27.24 | 5.73 | 91.67 | 44.72 |
| EV/EBIT | 37.16 | 37.55 | 4.75 | 68.79 | 31.38 |
| EV/EBITDA | 11.44 | 9.19 | 4.35 | 23.39 | 6.60 |
| P/FCF | 20.09 | 6.18 | 5.44 | 48.66 | 24.74 |
| P/FFO | 29.20 | 15.88 | 5.22 | 83.71 | 31.53 |
| P/TBV | 1.96 | 1.51 | 0.60 | 4.61 | 1.42 |
| P/AFFO | 56.41 | 34.06 | 5.52 | 129.66 | 65.02 |
| P/B Ratio | 1.94 | 1.51 | 0.58 | 4.61 | 1.42 |
| P/S Ratio | 2.61 | 3.02 | 0.74 | 5.63 | 1.73 |
Based on our peer multiples analysis with 5 valuation metrics, the model estimates LGO's fair value at $6.52 vs the current price of $1.67, implying +290.5% upside potential. Model verdict: Significantly Undervalued. Confidence: 49/100. This is a quantitative estimate, not a recommendation.
The blended fair value of $6.52 is calculated using four lenses: industry median multiples (40%), historical multiples (30%), forward estimates (20%), and quality-adjusted multiples (10%). Monte Carlo simulation (10,000 iterations) gives a range of $1.59 (P10) to $14.26 (P90), with a median of $6.56.
LGO's current P/E of -2.1x compares to the industry median of 20.1x (7 peers in the group). This represents a -110.6% discount to the industry. The historical average P/E is 41.5x over 3 years. Signal: Deep Discount.
1 analysts cover LGO with a consensus rating of Buy. The consensus price target is $3.10 (range: $3.10 — $3.10), implying +85.6% upside from the current price. Grade breakdown: Strong Buy (0), Buy (1), Hold (0), Sell (0), Strong Sell (0).
The model confidence score is 49/100, based on: data completeness (6), peer quality (25), historical depth (20), earnings stability (4), and model agreement (4). Cyclicality penalty: --10 points. The model shows moderate agreement across inputs.
The model flags several key risks: (1) Macro/regulatory risks are not captured in this model but remain material.
Peak earnings risk data is not available for LGO.
No. This dashboard is a quantitative research tool for educational and informational purposes only. It is not investment advice, a solicitation, or a recommendation to buy, sell, or hold any security. The operator of this platform is not a registered investment advisor (RIA), broker-dealer, or financial planner. All model outputs, fair value estimates, signals, and scenarios are the result of automated quantitative computations and should not be construed as professional financial guidance. You should consult a qualified, licensed financial advisor before making any investment decisions. Past model performance is not indicative of future results.