Reach Resources Ltd (RR1) fair value: what the stock is really worth
As of Oct 5, 2026: fair value of Reach Resources Ltd A$0.01, price A$0.01, upside +9.2%, quality 44 out of 100. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
69 individual criteria per stock, every one traceableSee the method →
Price vs Fair Value
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Oct 4, 2026.
How to read this chart
60‑month range A$0.0060 – A$0.0871 · fair‑value band A$0.0130 – A$0.0178 · the A$0.0130 price screens below the A$0.0142 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Oct 4, 2026.
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Reach Resources Limited engages in the exploration and evaluation of mineral resource projects in Australia. It primarily explores for gold, rare earth elements, lithium, niobium, and manganese. The company was formerly known as Cervantes Corporation Limited. Reach Resources Limited was incorporated in 2001 and is based in Perth, Australia.
Stock analysis
Reach Resources Ltd (RR1) currently trades at A$0.0130, while our model-based Fair Value estimate is A$0.0142, so the stock looks roughly fairly valued today (gap 8.5%).
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Valuation
Bull case: the Growth DCF group reads highest at a median of A$0.0300 per share, and 3 of the 5 models we run sit above the A$0.0130 price.
Bear case: the Asset-Based group reads lowest at A$0.0100, and 2 of the 5 models stay below the price. Evidence for this calculation is low.
Scenario range: A$0.0130 (bear) to A$0.0178 (bull), the price of A$0.0130 sits inside 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 44/100 (below-average quality), in the Basic Materials sector.
Mixed Growth: Revenue is growing, but margins or cash flow do not fully confirm the trend.
Reach Resources Ltd reported revenue of A$230K in FY2025 versus A$40 in FY2021, a compound +770.8%/yr. Reported net income was −A$4.4M in FY2026.
Key figures
Market cap A$15.9M (≈ $11.0M) · P/S ratio 4.97 · Return on equity −32.6% · Return on assets (EBIT) −4.9% · Revenue growth (YoY) −93.4% · Free cash flow A$1.4M · Net cash A$4.5M.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 38 out of 100 (low confidence).
What moves the price
The share trades about 24% below its 52-week high and 63% above its 52-week low, currently above its 200-day average.
For context, the median of 10 Basic Materials peers we cover trades at 10% fair-value upside, at 9%, RR1 screens richer than that median.
Fair Value models
Bear A$0.0130Fair Value A$0.0142Bull A$0.0178
Price A$0.0130 · Upside +9.2%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above is their evidence-weighted blend, not the output of a single 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. 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.Evidence ⓘEvidence = 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.53/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Revenue growth 1 year
−92.8%
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.
+32.0%
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.
+440.2%
Start year 2020 (pandemic). Over 10 years: +40.6% a year
Revenue growth 22 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.
−15.6%
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Profit margin (trend) ⓘ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.
200,088.0% (2020) → −498.2% (2025)
What shareholders gained per year ⓘWe only publish this rate when it is defensible. Reason: fiscal 2026 is a loss year, no rate is defined from a loss
not computed
Growth Forecast
Little optimism in the price
The price assumes less growth than the company has delivered so far.
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).
−20.6%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect
n/a
No analyst forecast available.
After inflation (Australia: IMF forecast 3.0% a year to 2030, 2.9% from 2016 to 2025) that is about −22.9% a year for the price.
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.Gold · 217 stocks
Beats the industry median on 5/9 measures
A mixed picture versus its industry peers.
Valuation
Quality Score44 · Below median
Fair Value upside+18.3% · Top 25%
Profitability
Return on assets−3.9% · Below median
Operating margin (TTM)0.0% · Below median
Growth and dividend
Revenue growth−93.4% · Bottom 25%
Valuation Multiplesvs Gold median · lower = cheaper
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Is Reach Resources Ltd (RR1) overvalued or undervalued?
As of Oct 4, 2026, our model estimates a fair value of A$0.0142 versus a price of A$0.0130, about +9% upside (fairly valued).
What is the fair value of RR1?
Our model-based fair value for Reach Resources Ltd is A$0.0142 (as of Oct 4, 2026), built from audited fundamentals. The current price: A$0.0130.
What is the quality score of RR1?
Reach Resources Ltd has a Quality Score of 44/100. 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 Reach Resources Ltd (RR1)?
Our model-based price target is the fair value of A$0.0142 (as of Oct 4, 2026) from 5 valuation models. Cautious scenario A$0.0130, optimistic scenario A$0.0178. It is a calculation from audited fundamentals, not an analyst target.
What is the Reach Resources Ltd stock forecast for 2026?
Our models put fair value at A$0.0142, about +9% upside versus a price of A$0.0130 (fairly valued). Cautious scenario A$0.0130, optimistic scenario A$0.0178. The calculation is refreshed regularly with new filings.
What growth is priced into Reach Resources Ltd (RR1)?
For today's price to be fair in a discounted-cash-flow model, Reach Resources Ltd would have to grow free cash flow by -20.6 % per year for five years (discount rate 9.5 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +440.2 % per year. As of Oct 4, 2026.
What discount rate (WACC) does the fair value of RR1 use?
Our models discount Reach Resources Ltd at 9.5 %: a base by market capitalisation (nano), 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 Reach Resources Ltd that is -20.6 % per year a year over ten years, using the same discount rate (9.5 %) and the same formula as our fair value.
How much growth has Reach Resources Ltd (RR1) delivered so far?
Over the past 5 years revenue at Reach Resources Ltd grew +440.2 % a year. The price currently implies -20.6 % 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 Reach Resources Ltd (RR1) growing?
The median revenue growth in the sector is +9.1 % a year. That is the yardstick for the growth priced into Reach Resources Ltd (-20.6 % 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 Reach Resources Ltd (RR1)?
The free-cash-flow yield on the price is 11.98 %: that much free cash flow Reach Resources Ltd produces per unit of market value. When it exceeds the discount rate of our models (9.5 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Reach Resources Ltd (RR1)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Reach Resources Ltd it is A$0.0142 per share (as of Oct 4, 2026), against a price of A$0.0130. It is the blended result of 5 valuation models (cash flow, earnings, asset, dividend).
Is Reach Resources Ltd stock overvalued or undervalued in 2026?
As of Oct 4, 2026, RR1 trades below its calculated fair value: price A$0.0130, fair value A$0.0142, a gap of about +9% (fairly valued). 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 RR1?
No. The price is what the market pays today (A$0.0130); the fair value is what the company's own numbers justify (A$0.0142). For Reach Resources Ltd the two are A$0.0012 per share apart. That gap is exactly why we show both numbers side by side.
How much is Reach Resources Ltd worth?
The market values Reach Resources Ltd at about A$15.9M (market capitalisation, as of Oct 4, 2026). Per share that is A$0.0130; our models calculate a fair value of A$0.0142 per share.
What do the bullish and bearish scenarios say about RR1?
Our models span a range for Reach Resources Ltd: cautious scenario A$0.0130, base A$0.0142, optimistic A$0.0178 per share (as of Oct 4, 2026, price A$0.0130). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the PEG ratio of RR1?
The PEG ratio of Reach Resources Ltd is 0.61 (P/E divided by earnings growth, as of Oct 4, 2026). That is below 1, so growth is priced more cheaply than the earnings multiple alone suggests.
How solid is the balance sheet of Reach Resources Ltd (RR1)?
Balance-sheet figures for Reach Resources Ltd (as of Oct 4, 2026): return on equity −32.6%. They feed the Quality Score of 44/100, which measures business quality independently of the share price.
How far is RR1 from its 52-week high?
Reach Resources Ltd trades at A$0.0130, about 24% below its 52-week high of A$0.0170 and 63% above the low of A$0.0080 (as of Oct 5, 2026). Distance from the high says nothing about value: that is what the fair value of A$0.0142 is for.
Which stocks are comparable to Reach Resources Ltd?
From the same area (Basic Materials) we also value Newmont Corporation, Zijin Mining Group, Agnico Eagle Mines Limited, Wheaton Precious Metals Corp, 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 Reach Resources Ltd stock attractive at the current price?
The data as of Oct 4, 2026: price A$0.0130, calculated fair value A$0.0142 (+9%), Quality Score 44/100, from 5 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 RR1 calculated?
We run Reach Resources Ltd through 5 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$0.0142, 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 15.0 % above its aggregate fair value. Reach Resources Ltd currently trades 8 % 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 Reach Resources Ltd (RR1)?
The closing price on Oct 5, 2026 was A$0.0130. Our model-based fair value is A$0.0142, about +9% upside (fairly valued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Reach Resources Ltd right now?
The price sits close to our fair value, market and models broadly agree here, little valuation tension. Evidence is limited here (fewer models, shorter history), so the fair value is a rougher estimate than usual.
Key figures of Reach Resources Ltd
How large is the market capitalisation of Reach Resources Ltd (RR1)?
The market capitalisation of Reach Resources Ltd is A$15.9M (≈ $11.0M). 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 Reach Resources Ltd (RR1)?
The price-to-sales ratio of Reach Resources Ltd is 4.97 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What is the return on equity of Reach Resources Ltd (RR1)?
The return on equity (ROE) of Reach Resources Ltd is −32.6% (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 Reach Resources Ltd (RR1)?
On an EBIT basis the return on assets of Reach Resources Ltd is −4.9% (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.
How fast is revenue growing at Reach Resources Ltd (RR1)?
Revenue at Reach Resources Ltd is growing −93.4% versus a year earlier (3y avg +32.0%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How much net cash does Reach Resources Ltd (RR1) hold?
Reach Resources Ltd holds more cash than debt, A$4.5M net (fiscal year 2026). The company holds more cash than debt, a safety cushion.
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