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Assessing Ramelius Resources (ASX:RMS) Valuation After Announcing a A$250 Million Share Buyback Program

Simply Wall St · 1d ago

Ramelius Resources (ASX:RMS) has kicked off a sizeable buyback, committing up to A$250 million to repurchase roughly 4% of its shares by mid 2027. This move is a clear signal of confidence at the board level.

See our latest analysis for Ramelius Resources.

The buyback comes after a powerful run in the shares, with a year to date share price return of about 69% and a three year total shareholder return above 300%. This suggests momentum is still firmly with the bulls, even if short term moves remain choppy.

If this kind of capital return story has your attention, it could be a good moment to see what else is out there and explore fast growing stocks with high insider ownership.

Yet with Ramelius trading below analyst targets and our estimate of intrinsic value, investors now face a key question: is this a genuine buying opportunity, or is the market already pricing in its future growth?

Most Popular Narrative Narrative: 17.5% Undervalued

Against a last close of A$3.57, the most popular narrative points to a higher fair value, framing the current rally as still potentially incomplete.

The analysts have a consensus price target of A$3.223 for Ramelius Resources based on their expectations of its future earnings growth, profit margins and other risk factors. However, there is a degree of disagreement amongst analysts, with the most bullish reporting a price target of A$3.85, and the most bearish reporting a price target of just A$2.6.

Read the complete narrative.

Curious how steady growth, shifting margins, and a richer future earnings multiple can still justify upside from here? The full narrative unpacks the detailed revenue path, profit forecasts, and valuation bridge that connect today’s price to that higher fair value.

Result: Fair Value of A$4.33 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, this upside view could unravel if gold prices soften or if recent acquisitions fail to deliver the expected production and cost synergies.

Find out about the key risks to this Ramelius Resources narrative.

Build Your Own Ramelius Resources Narrative

If you see the story differently or want to test your own assumptions against the numbers, you can build a custom view in minutes, Do it your way.

A great starting point for your Ramelius Resources research is our analysis highlighting 5 key rewards and 2 important warning signs that could impact your investment decision.

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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.