Fortescue Ltd (FMG) fair value: what the stock is really worth
As of Nov 5, 2026: fair value (intrinsic value) of Fortescue Ltd stock A$30.80, price A$15.49, upside +98.8%, quality 67 out of 100. Rating: strongly undervalued. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
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Price vs Fair Value
White line = price, green steps = our fair value per fiscal year. As of Nov 5, 2026.
How to read this chart
60‑month range A$9.21 – A$24.28 · fair‑value band A$21.56 – A$40.04 · the A$15.49 price screens below the A$30.80 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). As of Nov 5, 2026.
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Fortescue Ltd engages in the exploration, development, production, processing, and sale of iron ore in Australia, China, and internationally. The company explores for copper and lithium deposits; and rare earth elements.
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It owns and operates rail and port facilities; and focuses on producing green energy and green hydrogen, including derivatives comprising green ammonia, as well as green technology development and manufacturing.
The company was formerly known as Fortescue Metals Group Limited and changed its name to Fortescue Ltd in November 2023. Fortescue Ltd was incorporated in 1983 and is headquartered in Perth, Australia.
Stock analysis
Fortescue Ltd (FMG) currently trades at A$15.49, while our model-based Fair Value estimate is A$30.80, implying the stock looks roughly 50% undervalued today.
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Valuation
Bull case: the DCF Models group reads highest at a median of A$39.01 per share, and 22 of the 26 models we run sit above the A$15.49 price.
Bear case: the Asset-Based group reads lowest at A$6.08, and 4 of the 26 models stay below the price. Data coverage for this calculation is high.
Scenario range: A$21.56 (bear) to A$40.04 (bull), the price of A$15.49 sits below it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 67/100 (solid quality), in the Basic Materials sector.
Mixed Growth: Spin-off in 2002: revenue and profit before it include the divested business. Growth is measured afresh from 2002.
Fortescue Ltd reported revenue of $17.3B in FY2026 versus $17.3B in FY2022, a compound +0.0%/yr. Reported net income was $2.9B in FY2026, compounding −17.1%/yr from FY2022.
Key figures
Market cap A$47.7B (≈ $32.9B) Large · P/E ratio 11.3 · P/S ratio 1.91 · EPS (TTM) A$1.37 · Dividend yield 6.0% · Net margin 16.9% · Return on equity 14.2% · Return on assets (EBIT) 23.9%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 60 out of 100 (medium confidence).
What moves the price
The share trades about 31% below its 52-week high and 9% above its 52-week low, currently below its 200-day average.
For context, the median of 10 Basic Materials peers we cover trades at −9% fair-value upside, at 99%, FMG screens cheaper than that median.
Fair Value models
BearA$21.56Fair Value A$30.80BullA$40.04
Price A$15.49 · Upside +98.8%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models. Based on fiscal year 2026 figures (about 4 months old). Earnings retained since then (A$0.1536 per share) are deliberately not added.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. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Coverage ⓘCoverage = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.55/100
Spin-off in 2002: revenue and profit before it include the divested business. Growth is measured afresh from 2002.
Revenue growth 1 year
+12.4%
Revenue growth 3 years ⓘ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. Per-share growth (which does include buybacks) is in the value-creation card.
+1.3%
Revenue growth 5 years ⓘ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. Per-share growth (which does include buybacks) is in the value-creation card.
−5.0%
Start year 2021 (pandemic). Over 10 years: +9.3% a year
Revenue growth 24 years ⓘ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. Per-share growth (which does include buybacks) is in the value-creation card.
+55.8%
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What shareholders gained per year (last 5 years) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate. Basis: EBIT basis.
−3.5%
Earnings growth per share plus dividend.
Earnings per share, growth per year−9.5%
Dividend (yield on the price)6.0%
Per share before 1998divided by the spin-off factor 1.136
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.−13.9% vs 11.7%, slowing
Profit margin 2021 to 2026 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.67% → 32%
Pace: the 5-year rate starts in 2021 (pandemic)
Growth Forecast
Little optimism in the price
The price assumes about as much growth as the company has delivered so far and less than analysts expect.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
−7.8%
The company could shrink this much every year for the next five years and today's price would still be justified.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
−2.8%
Yearly sales growth analysts expect, extended to five years.
After inflation (figures in USD, USA: IMF forecast 2.4% a year to 2030, 3.1% from 2016 to 2025) that is about −10.0% a year for the price and −5.0% for the forecasts.
News mood ⓘNews mood, the average tone of recent news (100 articles), rated against how stocks are usually covered. 🚀 Hype = unusually upbeat · 🙂 Positive = above average · 😐 Neutral = typical · 🙁 Negative = below average · 😨 Very negative = unusually downbeat. It reflects the tone of coverage, not our valuation.Neutral
Recent news coverage is roughly neutral, about typical for how stocks are covered.
AI conclusion: Fortescue draws strength from large-scale iron ore mining yet remains exposed to commodity price swings with no durable moats in pricing or innovation.
Main risk: Higher-grade iron ore from the Simandou project in Guinea could increase seaborne supply and force lower prices or reduced volumes for Fortescue's lower-grade products.
Bull case: Fortescue could leverage its AI-driven operations and green energy projects to produce higher-value or lower-carbon iron products that meet evolving steelmaker needs and maintain volumes.
Bear case: If new high-grade supply and steelmaking shifts materialise, Fortescue might face sustained lower realisations, production adjustments and weaker cash flows as a pure-play iron ore miner.
Fortescue shipped more iron ore than it sold last quarter because pricing talks with China’s state-backed buyer remain unresolved. The company kept its full-year targets but warned operations could face adjustments if no agreement is reached by year-end. Our models see it as undervalued. Will Fortescue secure acceptable terms without cutting output, or will the standoff force production changes that hit cash flow harder than expected?
Price, fair value, quality and upside side by side.
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Peer Groupⓘ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.Other Industrial Metals & Mining · 373 stocks
Beats the industry median on 12/15 measures
Overall it ranks above its industry peers.
Valuation
Quality Score67 · Top 25%
Fair Value upside+98.8% · Top 25%
Profitability
Return on equity (12 months)14.2% · Top 25%
Return on assets9.0% · Top 25%
Net margin (12 months)16.9% · Above median
Operating margin (12 months)29.3% · Top 25%
Growth and dividend
Revenue growth (quarter YoY)7.9% · Below median
Dividend yield (12 months)6.0% · Top 25%
Balance sheet
Debt / equity0.25× · Above median
Valuation Multiplesvs Other Industrial Metals & Mining median · lower = cheaper
For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.
Cite: Fair Value Calculator (2026). "Fortescue Ltd Fair Value". https://www.fairvalue-calculator.com/stock/FMG
Frequently asked questions
Is Fortescue Ltd (FMG) overvalued or undervalued?
As of Nov 5, 2026, our model estimates a fair value of A$30.80 versus a price of A$15.49, about +99% upside (undervalued).
What is the fair value of FMG?
Our model-based fair value for Fortescue Ltd is A$30.80 (as of Nov 5, 2026), built from audited fundamentals. The current price: A$15.49.
What is the quality score of FMG?
Fortescue Ltd has a Quality Score of 67/100. 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 price target for Fortescue Ltd (FMG)?
Our model-based price target is the fair value of A$30.80 (as of Nov 5, 2026) from 26 valuation models. Cautious scenario A$21.56, optimistic scenario A$40.04. It is a calculation from audited fundamentals, not an analyst target.
What is the Fortescue Ltd stock forecast for 2026?
Our models put fair value at A$30.80, about +99% upside versus a price of A$15.49 (undervalued). Cautious scenario A$21.56, optimistic scenario A$40.04. The calculation is refreshed regularly with new filings.
What is the revenue of Fortescue Ltd (FMG)?
Fortescue Ltd reported trailing-twelve-month revenue of about $17.0B (latest available figure, as of Nov 5, 2026).
Does Fortescue Ltd pay a dividend?
Fortescue Ltd currently shows a dividend yield of 6.04% relative to its recent price (as of Nov 5, 2026).
What growth is priced into Fortescue Ltd (FMG)?
For today's price to be fair in a discounted-cash-flow model, Fortescue Ltd would have to grow free cash flow by -7.8 % per year for five years (discount rate 8.3 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew -5.0 % per year. As of Nov 5, 2026.
What discount rate (WACC) does the fair value of FMG use?
Our models discount Fortescue Ltd at 8.3 %: a base by market capitalisation (large), damped by beta 0.69, country premium for Australia. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For Fortescue Ltd that is -7.8 % per year a year over ten years, using the same discount rate (8.3 %) and the same formula as our fair value.
How much growth has Fortescue Ltd (FMG) delivered so far?
Over the past 5 years revenue at Fortescue Ltd grew -5.0 % a year. The price currently implies -7.8 % per year free-cash-flow growth a year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of Fortescue Ltd (FMG) growing?
The median revenue growth in the sector is +9.8 % a year. That is the yardstick for the growth priced into Fortescue Ltd (-7.8 % per year a year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Fortescue Ltd (FMG)?
The free-cash-flow yield on the price is 10.99 %: that much free cash flow Fortescue Ltd produces per unit of market value. When it exceeds the discount rate of our models (8.3 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Fortescue Ltd (FMG)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Fortescue Ltd it is A$30.80 per share (as of Nov 5, 2026), against a price of A$15.49. It is the blended result of 26 valuation models (cash flow, earnings, asset, dividend).
Is Fortescue Ltd stock overvalued or undervalued in 2026?
As of Nov 5, 2026, FMG trades below its calculated fair value: price A$15.49, fair value A$30.80, a gap of about +99% (undervalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of FMG?
No. The price is what the market pays today (A$15.49); the fair value is what the company's own numbers justify (A$30.80). For Fortescue Ltd the two are A$15.31 per share apart. That gap is exactly why we show both numbers side by side.
How much is Fortescue Ltd worth?
The market values Fortescue Ltd at about A$47.7B (market capitalisation, as of Nov 5, 2026). Per share that is A$15.49; our models calculate a fair value of A$30.80 per share.
What do the bullish and bearish scenarios say about FMG?
Our models span a range for Fortescue Ltd: cautious scenario A$21.56, base A$30.80, optimistic A$40.04 per share (as of Nov 5, 2026, price A$15.49). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of FMG?
Fortescue Ltd trades at a price-to-earnings ratio of 11.3 (as of Nov 5, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of A$30.80 is built from several models across several years. Median P/E at fiscal year-end, 10 fiscal years (2017 to 2026), reported earnings: 7.0. Other multiples: PEG 0.1, P/B 1.7, P/S 2.0, EV/EBITDA 4.1.
What is the PEG ratio of FMG?
The PEG ratio of Fortescue Ltd is 0.06 (P/E divided by earnings growth, as of Nov 5, 2026). That is below 1, so growth is priced more cheaply than the earnings multiple alone suggests.
How solid is the balance sheet of Fortescue Ltd (FMG)?
Balance-sheet figures for Fortescue Ltd (as of Nov 5, 2026): return on equity 14.2%, debt of 0.25 per unit of equity. They feed the Quality Score of 67/100, which measures business quality independently of the share price.
How far is FMG from its 52-week high?
Fortescue Ltd trades at A$15.49, about 31% below its 52-week high of A$22.39 and 9% above the low of A$14.19 (as of Nov 5, 2026). Distance from the high says nothing about value: that is what the fair value of A$30.80 is for.
Which stocks are comparable to Fortescue Ltd?
From the same area (Basic Materials) we also value BHP Group, Saudi Arabian Mining Company, CMOC Group, Hindustan Zinc Limited, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Fortescue Ltd stock attractive at the current price?
The data as of Nov 5, 2026: price A$15.49, calculated fair value A$30.80 (+99%), Quality Score 67/100, from 26 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of FMG calculated?
We run Fortescue Ltd through 26 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of A$30.80, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 15.5% above its aggregate fair value. Fortescue Ltd currently trades 50% below its own fair value, and the market average says nothing about that. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Fortescue Ltd (FMG)?
The closing price on Nov 5, 2026 was A$15.49. Our model-based fair value is A$30.80, about +99% upside (undervalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Fortescue Ltd right now?
The price is below even our cautious bear case (A$21.56). The market is more pessimistic than our downside scenario. Solid quality (67/100) at a price below fair value, the discount is the argument here, not the business quality. A fairly wide model range (A$21.56 to A$40.04) leaves room in how you read the outcome.
Where does the earnings growth of Fortescue Ltd (FMG) come from?
Earnings per share at Fortescue Ltd grew +15.2 % a year from 2015 to 2026. Broken into its drivers: revenue per share +8.9 %, EBIT margin +4.6 %, tax rate −0.6 %, residual (interest, one-offs) +1.8 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.
Key figures of Fortescue Ltd
How large is the market capitalisation of Fortescue Ltd (FMG)?
The market capitalisation of Fortescue Ltd is A$47.7B (≈ $32.9B). The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Fortescue Ltd (FMG)?
The price-to-sales ratio of Fortescue Ltd is 1.91 (P/E × margin). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Fortescue Ltd (FMG)?
Earnings per share at Fortescue Ltd are A$1.37 (price ÷ EPS = P/E 11.3). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Fortescue Ltd (FMG)?
The dividend yield of Fortescue Ltd is 6.0% (payout 68.3%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of Fortescue Ltd (FMG)?
The net margin of Fortescue Ltd is 16.9% (fiscal year 2026). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Fortescue Ltd (FMG)?
The return on equity (ROE) of Fortescue Ltd is 14.2% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Fortescue Ltd (FMG)?
On an EBIT basis the return on assets of Fortescue Ltd is 23.9% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Fortescue Ltd (FMG)?
The operating margin of Fortescue Ltd is 29.3% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Fortescue Ltd (FMG)?
Revenue at Fortescue Ltd is growing +7.9% versus a year earlier (3y avg +1.3%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Fortescue Ltd (FMG)?
Earnings per share at Fortescue Ltd are growing −47.5% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net debt does Fortescue Ltd (FMG) carry?
The net debt of Fortescue Ltd is $857M (fiscal year 2026, ≈ 0.2 yrs of FCF). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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Broad data
Nov 5, 2026