WEBULL

Assessing The Metals Company (TMC) Valuation As Regulatory And Processing Milestones Draw Investor Focus

Simply Wall St · 3d ago

Regulatory progress puts TMC the metals (NasdaqGS:TMC) in focus

Recent coverage of TMC the metals (NasdaqGS:TMC) has focused on its efforts to secure approvals for deep sea polymetallic nodule mining, as well as on technical steps toward commercializing its processing technology.

See our latest analysis for TMC the metals.

Those regulatory milestones and processing updates have coincided with sharp swings in sentiment, with a 22.85% 7 day share price return and an 11.80% year to date share price return sitting alongside a very large 1 year total shareholder return. Recent momentum therefore comes on top of already strong long term gains.

If this kind of high risk story interests you, it can be useful to broaden the search and see which other resource heavy businesses are moving through fast growing stocks with high insider ownership.

With TMC now trading at US$7.58 and sitting roughly 16% below an analyst price target of US$8.80 after a very large 1 year return, you have to ask: is there still a buying opportunity here, or is the market already pricing in future growth?

Price-to-Book of -77.2x: Is it justified?

TMC reports negative shareholders' equity, which results in a P/B ratio of -77.2x compared with a peer average of 8.4x and a US Metals and Mining industry average of 2.4x.

P/B usually compares a company’s market value to its net assets, but when equity is negative, that relationship breaks down and the ratio stops being a useful anchor for value.

In this case, the very large negative P/B reflects liabilities that exceed assets rather than a conventional premium or discount, so it does not clearly signal whether the current US$7.58 share price is generous or conservative relative to peers.

Given the negative equity position and lack of meaningful revenue, the market appears to be focusing more on TMC's future project potential and regulatory progress than on traditional book value comparisons used across the sector.

See what the numbers say about this price — find out in our valuation breakdown.

Result: Price-to-book of -77.2x (ABOUT RIGHT to treat with caution, not a reliable value signal)

However, you still have to weigh execution and funding risk, given there is no revenue, a US$295.507 million net loss and heavy reliance on regulatory approvals for deep sea mining.

Find out about the key risks to this TMC the metals narrative.

Build Your Own TMC the metals Narrative

If you see the story differently or would rather test the numbers yourself, you can build your own view in just a few minutes with Do it your way.

A great starting point for your TMC the metals research is our analysis highlighting 1 key reward and 5 important warning signs that could impact your investment decision.

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If TMC is on your radar, do not stop there. Cast the net wider with focused screens that surface very different kinds of opportunities across the market.

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.