{"id":1081,"date":"2026-02-11T18:07:28","date_gmt":"2026-02-11T18:07:28","guid":{"rendered":"https:\/\/www.europesays.com\/ch\/1081\/"},"modified":"2026-02-11T18:07:28","modified_gmt":"2026-02-11T18:07:28","slug":"is-glencore-lseglen-still-attractively-priced-after-a-37-9-one-year-rally","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/ch\/1081\/","title":{"rendered":"Is Glencore (LSE:GLEN) Still Attractively Priced After A 37.9% One Year Rally"},"content":{"rendered":"\n

Never miss an important update on your stock portfolio<\/a> and cut through the noise. Over 7 million investors trust Simply Wall St to stay informed where it matters for FREE.<\/p>\n

If you are wondering whether Glencore\u2019s share price still offers value, the recent performance gives you several reasons to take a closer look at what you are paying for each pound of earnings and assets.<\/p>\n

The stock closed at \u00a34.75, with a 7 day return of a 6.4% decline, a 30 day return of 11.1% and a 1 year return of 37.9%. This has put the question of value and risk firmly on the table for many investors.<\/p>\n

Over recent months, Glencore has attracted attention as investors have weighed commodity market conditions and the company\u2019s position as a major global materials player. This backdrop helps explain why shorter term returns such as the 16.3% year to date move and the 4.4% 3 year figure sit alongside a 125.7% 5 year return.<\/p>\n

On Simply Wall St\u2019s valuation checks, Glencore scores 3 out of 6 for being undervalued, giving it an overall valuation score of 3. Next, we look at how different valuation methods assess the shares, before finishing with a way to put all these numbers into context.<\/p>\n

Find out why Glencore’s 37.9% return over the last year is lagging behind its peers.<\/a><\/p>\n

A Discounted Cash Flow, or DCF, model looks at the cash Glencore is expected to generate in the future, then discounts those projections back to today to estimate what the business might be worth right now.<\/p>\n

For Glencore, the model used is a 2 Stage Free Cash Flow to Equity approach, based on cash flow projections in US$. The latest twelve month free cash flow is about US$986.6m. Analyst inputs extend out to 2029, with free cash flow for that year projected at US$4.1b, and Simply Wall St extrapolates further using its own assumptions for 2030 to 2035.<\/p>\n

When these projected cash flows are discounted back, the DCF model arrives at an estimated intrinsic value of US$3.82 per share. Compared with the current share price of \u00a34.75, this implies Glencore screens as around 24.4% overvalued on this particular approach.<\/p>\n

Result: OVERVALUED<\/p>\n

Our Discounted Cash Flow (DCF) analysis suggests Glencore may be overvalued by 24.4%. Discover 11 high quality undervalued stocks<\/a> or create your own screener<\/a> to find better value opportunities.<\/p>\n

\"GLEN<\/a> GLEN Discounted Cash Flow as at Feb 2026 <\/p>\n

Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Glencore.<\/a><\/p>\n

For companies that generate meaningful revenue across cycles, the P\/S ratio can be a useful way to look at value because it focuses on what you are paying for each unit of sales, regardless of short term earnings swings.<\/p>\n

Story Continues <\/p>\n

What counts as a \u201cnormal\u201d P\/S often reflects how investors see the balance between growth potential and risk. Higher expected growth and lower perceived risk can justify a higher multiple, while lower growth or higher risk usually point to a lower, more conservative range.<\/p>\n

Glencore currently trades on a P\/S of 0.33x. That is well below the Metals and Mining industry average P\/S of 3.97x and the peer group average of 5.01x. Simply Wall St\u2019s Fair Ratio for Glencore, which estimates a company specific P\/S based on factors such as earnings growth, industry, profit margins, market cap and risk profile, is 1.15x.<\/p>\n

This Fair Ratio is designed to be more tailored than a straight comparison with peers or industry averages because it adjusts for Glencore\u2019s own fundamentals rather than assuming all companies in the sector deserve the same multiple.<\/p>\n

Set against this Fair Ratio of 1.15x, Glencore\u2019s actual 0.33x P\/S indicates the shares are trading below that company specific estimate of fair value.<\/p>\n

Result: UNDERVALUED<\/p>\n

\"LSE:GLEN<\/a> LSE:GLEN P\/S Ratio as at Feb 2026 <\/p>\n

P\/S ratios tell one story, but what if the real opportunity lies elsewhere? Start investing in legacies, not executives. Discover our 3 top founder-led companies<\/a>.<\/p>\n

Earlier we mentioned that there is an even better way to understand valuation, so let us introduce you to Narratives, a simple way to connect your view of Glencore\u2019s future to clear numbers.<\/p>\n

A Narrative is your story for the company, where you spell out what you think is reasonable for Glencore\u2019s future revenue, earnings and margins, then link that to a fair value you are comfortable with.<\/p>\n

On Simply Wall St\u2019s Community page, used by millions of investors, Narratives turn that story into a financial forecast and a fair value estimate, then help you compare that fair value to today\u2019s share price so you can judge for yourself whether Glencore looks expensive or cheap on your assumptions.<\/p>\n

Because Narratives are refreshed when new information such as news or earnings is added to the platform, your view can stay current without you needing to rebuild everything from scratch. For example, one Glencore Narrative might assume a conservative fair value and slower growth, while another assumes higher long term demand and a higher fair value, giving you a clear sense of the range of opinions in the market.<\/p>\n

Do you think there’s more to the story for Glencore? Head over to our Community to see what others are saying!<\/a><\/p>\n

\"LSE:GLEN<\/a> LSE:GLEN 1-Year Stock Price Chart <\/p>\n

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.<\/p>\n

Companies discussed in this article include GLEN.L<\/a>.<\/p>\n

Have feedback on this article? Concerned about the content? Get in touch<\/a> with us directly. Alternatively, email editorial-team@simplywallst.com<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Never miss an important update on your stock portfolio and cut through the noise. Over 7 million investors…\n","protected":false},"author":2,"featured_media":996,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[123],"tags":[1103,1105,132],"class_list":{"0":"post-1081","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-glencore","8":"tag-dcf","9":"tag-free-cash-flow","10":"tag-glencore"},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/posts\/1081","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/comments?post=1081"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/posts\/1081\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/media\/996"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/media?parent=1081"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/categories?post=1081"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/tags?post=1081"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}