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Pan African Resources PLC (PAF) Fair Value & Analysis

Basic Materials · GB · Market cap 1.9B GBX · ISIN GB0004300496

What is Pan African Resources PLC really worth?

PA Pan African Resources PLC PAF · LSE
Price£1.37
Fair Value£0.6100
Upside−55.4%
Quality62/100

A solid business, but trading 124% above our fair value of £0.6100.

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Strengths

Highly profitable · 28.8% net margin
Ranks above peers (9/13)
Wide moat 88/100

Risks

!Expensive Growth (revenue 5y +14.5 %/yr)
!Low debt · negative free cash flow

For context

·1.60% dividend yield
Evidence: High Range £0.3900 – £0.9800

Fair value as of: Aug 20, 2026

From 17 valuation models · updated 16 days ago

Fair value updated Aug 20, 2026, revised from £0.8300 to £0.6100 (−26.5%) since Aug 13, 2026. Share price +31.3% over the past month.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

What matters now

  • The price sits above even our optimistic bull case (£0.9800). The favourable scenario is already priced in.
  • Solid but not exceptional quality (62/100) and above fair value, neither a clear bargain nor a standout compounder.
  • A fairly wide model range (£0.3900 to £0.9800) leaves room in how you read the outcome.

Price vs Fair Value (5 years)

£1.83 £0.1099 Fair Value £0.6100 Jun 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 20, 2026.

How to read this chart

60‑month range £0.1099 – £1.83 · fair‑value band £0.3900 – £0.9800 · the £1.37 price screens above the £0.6100 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). 1 fiscal year is left out: there the valuation rested on only a fraction of the usual models. Dashed = 300-day average. As of Aug 20, 2026.

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Analysis

Pan African Resources PLC (PAF) currently trades at £1.37, while our model-based Fair Value estimate is £0.6100, implying the stock looks roughly 124.3% overvalued today. The Quality Score stands at 62/100 (solid quality), in the Basic Materials sector. Bull case: the Growth Earnings group reads highest at a median of £1.19 per share, and 1 of the 17 models we run sit above the £1.37 price. Bear case: the DCF Models group reads lowest at £0.1200, and 16 of the 17 models stay below the price. Evidence for this calculation is high.

Over the trailing twelve months, Pan African Resources PLC generated revenue of £838M at a net margin of 28.8%. Revenue grew 157.3% year over year. It earns a return on equity of 43.6%. Net debt stands at £144M. Fundamentals as of Aug 20, 2026

Our scenario range runs from £0.3900 (bear case) to £0.9800 (bull case); at £1.37, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. For context, the median of 10 Basic Materials peers we cover trades at −12% fair-value upside, at −55%, PAF screens richer than that median.

Fair Value models

This estimate rests on fiscal year 2025 figures, and about 12 months have passed since. In that time the company retained roughly £0.0681 per share, which is 11.2 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small. Every input is real reported data, nothing guessed.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
EPV £0.5300 £0.6000 £0.6700 74
Owner Earnings £0.0600 £0.1200 £0.2200 73
ROIC Compounder £0.5900 £0.7600 £0.9600 72
All 17 models by family
DCF Models
Owner Earnings £0.0600 £0.1200 £0.2200 73
Earnings-Based
Graham-Dodd £0.4700 £2.21 £3.03 64
Lynch FV £0.5800 £0.8300 £1.08 61
PEG = 1.0 £0.5800 £0.8300 £1.08 57
EPV £0.5300 £0.6000 £0.6700 74
Dividend Discount
Gordon GGM £0.0700 £0.1300 £0.1700 68
DDM Multi-Stage £0.0700 £0.1200 £0.1300 67
Multiples
P/E Multiple £0.8900 £1.19 £1.48 63
P/S Multiple £0.3000 £0.4000 £0.5000 58
P/B Multiple £0.6100 £0.8100 £1.02 55
EV/EBIT £0.9900 £1.33 £1.67 66
EV/EBITDA £0.8300 £1.11 £1.40 67
EV/Revenue £0.2500 £0.3700 £0.4900 53
Asset-Based
NCAV (Graham) £0.1400 £0.1800 £0.2700 54
Economic Profit
Residual Income £0.4100 £0.5900 £3.45 64
ROIC Compounder £0.5900 £0.7600 £0.9600 72
Growth Earnings
Growth-Adj P/E £0.8300 £1.19 £1.54 67

Widest divergence: Growth Earnings (£1.19) versus DCF Models (£0.1200). Highest evidence: EPV (74).

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Key figures & financial health

P/E ratio 15.2
P/S ratio 3.99 P/E × margin
EPS (TTM) £0.0900 price ÷ EPS = P/E 15.2
Dividend yield 1.6% payout 24.3%
Net margin 26.2% FY2025
Return on equity 43.6% TTM
More key figures
Profitability
Return on assets (EBIT) 20.7% avg 5y
Operating margin 52.4% TTM
Growth
Revenue (TTM) £838M TTM
Revenue growth (YoY) +157% 3y avg +12.8%
EPS growth (YoY) +192%
Balance sheet & cash flow
Free cash flow −3.8M GBX FY2025
Net debt 144M GBX FY2025

Figures from reported company fundamentals · as of Aug 20, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 62/100

Of which business quality 60 · Market factors (momentum, volatility) 64

Profitability 69
Margins and returns on capital today
Quality Growth 84
Are margins and returns improving?
Cashflow 38
Earnings quality: real cash, not paper profit
Fin. Strength 76
Balance sheet, leverage, solvency risk
Investment 0
Disciplined investing over empire-building
Low Volatility 43
Calm price path (market factor)
Momentum 68
Price trend over the last 3–12 months (market factor)
52W Momentum 81
Distance to the 52-week high (market factor)
Net Issuance 78
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

About the company

Pan African Resources PLC engages in the mining, extraction, production, and sale of gold in South Africa. Its flagship projects include the Barberton Mines that consists of three underground mines, including Fairview, Sheba, and Consort located in the Barberton Greenstone Belt; and Elikhulu tailings retreatment plant in Southern Africa.

Full company description

Pan African Resources PLC engages in the mining, extraction, production, and sale of gold in South Africa. Its flagship projects include the Barberton Mines that consists of three underground mines, including Fairview, Sheba, and Consort located in the Barberton Greenstone Belt; and Elikhulu tailings retreatment plant in Southern Africa. Pan African Resources PLC is headquartered in Johannesburg, South Africa.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Pan African Resources PLC reported revenue of $540M in FY2025 versus $369M in FY2021, a compound +10.0%/yr. Reported net income was $142M in FY2025, compounding +17.3%/yr from FY2021.

Growth Quality 62/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2025)
£540M
Latest YoY
+44.5%
Avg. revenue growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+12.8%
Avg. revenue growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+14.5%
Avg. revenue growth/yr (17Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+7.6%
Value creation/yr (5Y) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year.
+27.8% (26.2 + 1.6)
Revenue +10.0%/yr
FY21 $369M
FY22 $376M
FY23 $322M
FY24 $374M
FY25 $540M
Net income +17.3%/yr
FY21 $74.7M
FY22 $75.1M
FY23 $61.1M
FY24 $79.4M
FY25 $142M
Character of growth · EPS growth decomposed (2014-2025) +6.5 % p.a.
Revenue per share +0.8 %

of which total revenue +1.4 % · buybacks/dilution −0.6 %

EBIT margin +6.3 %
Tax rate −0.8 %
Residual (interest, one-offs) +0.2 %

Annual growth per factor. These are factors, not summands: multiplied they give the EPS growth rate, added they do not quite. Start and end points are 3-year averages (details on hover).

PAF screens 124% overvalued. Compare with Newmont Corporation →

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Cite: Fair Value Calculator (2026). "Pan African Resources PLC Fair Value". https://www.fairvalue-calculator.com/stock/PAF

Peer Group

Gold · 245 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 62 · Above median
Fair Value upside −55% · Below median
Return on equity (TTM) 44% · Top 25%
Return on assets 26% · Top 25%
Net margin (TTM) 29% · Top 25%
Operating margin (TTM) 52% · Top 25%
Revenue growth 157% · Top 25%
Dividend yield (TTM) 1.6% · Above median
Debt / equity 0.19× · Higher than 75% of peers

Valuation Multiples vs Gold median · lower = cheaper

P/E (TTM) 15.2× · Pricier than median
P/B 4.67× · Pricier than 75% of peers
P/S (TTM) 3.06× · Cheaper than median
EV/EBITDA 5.8× · Pricier than median

Strength profile in five axes (Snowflake)

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE0 · sector 0
FUTURE100 · sector 100
PAST100 · sector 2
HEALTH91 · sector 98
DIVIDEND32 · sector 20

VALUE 0: the price sits above our fair-value range.

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

Similar stocks

10 more Gold stocks, each showing price versus our Fair Value estimate (as of Aug 20, 2026).

Stock Price Fair Value vs Fair Value
Newmont Corporation NEMCL $128.00 $112.82 −12%
Zijin Mining Group 601899 ¥32.21 ¥39.42 +22%
Agnico Eagle Mines Limited AEM C$268.76 C$213.40 −21%
Barrick Mining Corporation B $41.23 $50.66 +23%
Franco-Nevada Corporation FNV $271.31 $96.63 −64%
Wheaton Precious Metals Corp WPM C$201.40 C$56.05 −72%
AngloGold Ashanti plc AU $97.92 $88.63 −9%
Kinross Gold Corporation KGC $32.51 $34.62 +6%
Royal Gold, Inc RGLD $262.85 $93.56 −64%
Northern Star Resources Limited NST A$23.19 A$15.98 −31%

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Frequently asked questions

Is Pan African Resources PLC (PAF) overvalued or undervalued?
As of Aug 20, 2026, our model estimates a fair value of £0.6100 versus a price of £1.37, about −55% upside (overvalued).
What is the fair value of PAF?
Our model-based fair value for Pan African Resources PLC is £0.6100 (as of Aug 20, 2026), built from audited fundamentals. The current price: £1.37.
What is the quality score of PAF?
Pan African Resources PLC has a Quality Score of 62/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Pan African Resources PLC (PAF)?
Pan African Resources PLC reported trailing-twelve-month revenue of about £838M (latest available figure, as of Aug 20, 2026).
What is the net profit margin of PAF?
The net profit margin of Pan African Resources PLC is about 28.8%, meaning it keeps roughly 28.8% of revenue as net income. Based on the latest reported figures.
Does Pan African Resources PLC pay a dividend?
Pan African Resources PLC currently shows a dividend yield of about 1.60% relative to its recent price (as of Aug 20, 2026).
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