EQ Resources (ASX:EQR) Valuation After A$34 Million Follow On Equity Offering

Simply Wall St.03-29

EQ Resources (ASX:EQR) has completed a A$34 million follow on equity offering at A$0.05 per share, adding 680,000,000 new ordinary shares. This move directly affects valuation and ownership dilution. ...

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This move directly affects valuation and ownership dilution. ...</p>\n\n<a href=\"https://simplywall.st/stocks/au/materials/asx-eqr/eq-resources-shares/news/eq-resources-asxeqr-valuation-after-a34-million-follow-on-eq\">Source Link</a>\n\n</div>\n","source":"simplywall_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>EQ Resources (ASX:EQR) Valuation After A$34 Million Follow On Equity Offering</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nEQ Resources (ASX:EQR) Valuation After A$34 Million Follow On Equity Offering\n</h2>\n\n<h4 class=\"meta\">\n\n\n2026-03-29 16:12 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/au/materials/asx-eqr/eq-resources-shares/news/eq-resources-asxeqr-valuation-after-a34-million-follow-on-eq><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>EQ Resources (ASX:EQR) has completed a A$34 million follow on equity offering at A$0.05 per share, adding 680,000,000 new ordinary shares. This move directly affects valuation and ownership dilution. ...</p>\n\n<a href=\"https://simplywall.st/stocks/au/materials/asx-eqr/eq-resources-shares/news/eq-resources-asxeqr-valuation-after-a34-million-follow-on-eq\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK7095","symbol_name":"多种金属与采矿","start_time":0,"source_url":"https://simplywall.st/stocks/au/materials/asx-eqr/eq-resources-shares/news/eq-resources-asxeqr-valuation-after-a34-million-follow-on-eq","article_id":"2623356697","we_media_id":null,"thumbnails":["https://images.simplywall.st/asset/industry/2052000-choice1-main-header/1585186836557"],"rights":{"source":"simplywall_highlight","url":"https://simplywall.st/stocks/au/materials/asx-eqr/eq-resources-shares/news/eq-resources-asxeqr-valuation-after-a34-million-follow-on-eq","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2623356697","pubTimestamp":1774771932,"columns":[],"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"EQ Resources (ASX:EQR) has completed a A$34 million follow on equity offering at A$0.05 per share, adding 680,000,000 new ordinary shares. This move directly affects valuation and ownership dilution.\nSee our latest analysis for EQ Resources.\nThe follow on equity offering comes after a period of very strong momentum, with a 30 day share price return of 31.25% and a 90 day share price return of 288.89%. The 1 year total shareholder return is also very large, suggesting sentiment has been...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK7095":"多种金属与采矿","BK4215":"住宅房地产投资信托","EQR":"资产住宅公司","BK4568":"美国抗疫概念","EQR.AU":"EQ RESOURCES LTD","BK4588":"碎股","EQ":"Equillium Inc.","DCF":"Dreyfus Alcentra Global Credit Income 2024 Target Term Fund, Inc","BK4585":"ETF&股票定投概念","BK4139":"生物科技"},"translate_title":"EQ Resources(ASX：EQR)股票发行后估值为3400万美元","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"EQ":1.5,"EQR":1.5,"DCF":1,"EQR.AU":1.5},"content_text":"EQ Resources (ASX:EQR) has completed a A$34 million follow on equity offering at A$0.05 per share, adding 680,000,000 new ordinary shares. This move directly affects valuation and ownership dilution. See our latest analysis for EQ Resources. The follow on equity offering comes after a period of very strong momentum, with a 30 day share price return of 31.25% and a 90 day share price return of 288.89%. The 1 year total shareholder return is also very large, suggesting sentiment has been building rather than fading as the company raises fresh capital. If you are looking beyond EQ Resources for ideas in the same broad space, this could be a useful moment to scan the rare earths segment using our 26 best rare earth metal stocks. With the shares recently at A$0.315, an analyst price target at the same level, and an intrinsic value estimate implying a large discount, you need to ask whether EQ Resources is mispriced or whether the market is already factoring in future growth. AdvertisementPreferred Price to Sales Multiple of 21.1x: Is it justified? EQ Resources is currently valued at a P/S of 21.1x, which sits above its estimated fair P/S of 9.9x and well above close peers, even after a strong share price run to A$0.315. The P/S ratio compares the market value of the company to its revenue. It essentially shows how much investors are willing to pay for each dollar of sales. For an unprofitable miner with A$75.45m in revenue and a net loss of A$22.59m, a higher P/S often signals that the market is placing weight on future revenue growth and the potential for a shift to profitability. Compared with the broader Australian Metals and Mining industry, where the average P/S is 83.4x, EQ Resources trades at a lower multiple. However, it is still expensive versus a peer group average of 3.8x and its own estimated fair P/S of 9.9x. The gap between the current 21.1x and the level suggested by the fair ratio is wide and could be an area investors watch closely if sentiment or expectations change. Explore the SWS fair ratio for EQ Resources Result: Price-to-sales of 21.1x (OVERVALUED) However, you still have to weigh the A$22.59m net loss and rich 21.1x P/S against any disappointment in project delivery or rare earths sentiment. Find out about the key risks to this EQ Resources narrative. Another angle from the SWS DCF model The pricing picture changes when you look at the SWS DCF model. At A$0.32, EQ Resources is trading about 67% below an estimated future cash flow value of A$0.95, which frames the shares as undervalued rather than expensive on sales alone. Different tools are telling very different stories here, so the real question is which set of assumptions you trust more for a loss making miner with high forecast growth: the rich 21.1x P/S or the SWS DCF signal of undervaluation. Look into how the SWS DCF model arrives at its fair value. EQR Discounted Cash Flow as at Mar 2026Simply 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 8 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 on valuation and sentiment can be confusing, so this is a good time to look through the numbers yourself, weigh both sides, and move quickly to shape your own stance by reviewing the 2 key rewards and 2 important warning signs Looking for more investment ideas? If you stop with just one stock here, you could miss other opportunities that better suit your goals, risk comfort, and timeline.  Target potential mispricings by scanning for companies that combine quality fundamentals with attractive valuations using the 8 high quality undervalued stocks. Strengthen your income stream by reviewing companies with higher yields and resilient payouts through the 6 dividend fortresses. Reduce portfolio stress by focusing on companies with sturdier finances and lower risk profiles via the 8 resilient stocks with low risk scores.   This article by Simply Wall St is general in nature. We provide commentary based on historical data\n    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\n    financial situation. We aim to bring you long-term focused analysis driven by fundamental data.\n    Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.\n    Simply Wall St has no position in any stocks mentioned.Valuation is complex, but we're here to simplify it.Discover if EQ Resources might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.Access Free AnalysisHave feedback on this article? Concerned about the content? Get in touch with us directly. 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