A Discounted Cash Flow, or DCF, model takes estimates of a company\u2019s future cash flows and discounts them back to today\u2019s value using a required rate of return. The idea is simple: you are asking what those future cash flows are worth in today\u2019s money.<\/p>\n
For Glencore, the model used is a 2 Stage Free Cash Flow to Equity approach based on cash flow projections. The latest twelve month free cash flow is about US$986.6 million. Analysts provide explicit free cash flow estimates for the next few years, and Simply Wall St then extrapolates further projections out to 2035. By 2030, projected free cash flow is US$4.6b, with intermediate years in the US$4.7b to US$5.1b range according to the model\u2019s path.<\/p>\n
Bringing all of those discounted cash flows together gives an estimated intrinsic value of \u00a34.17 per share. Compared with the current share price, the model suggests Glencore is around 1.5% overvalued, which is effectively a tight band around fair value.<\/p>\n
Result: ABOUT RIGHT<\/p>\n
Glencore is fairly valued according to our Discounted Cash Flow (DCF)<\/a>, but this can change at a moment’s notice. Track the value in your watchlist<\/a> or portfolio<\/a> and be alerted on when to act.<\/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 Glencore, the preferred metric is the P\/S ratio, which can be helpful when earnings are volatile or less informative on their own, but revenue is substantial and more stable. Investors usually accept a higher or lower P\/S depending on what they expect for future growth and how much risk they see in the business. Higher expected growth and lower perceived risk can justify a higher \u201cnormal\u201d multiple, while lower growth or higher risk can point to a lower one.<\/p>\n Story Continues <\/p>\n Glencore currently trades on a P\/S of 0.29x. That compares with an industry average P\/S for Metals and Mining of 3.42x and a peer average of 4.79x, so the market is valuing each pound of Glencore\u2019s revenue at a lower level than these broad benchmarks.<\/p>\n Simply Wall St\u2019s Fair Ratio is a proprietary estimate of what P\/S might be appropriate given Glencore\u2019s earnings growth profile, industry, profit margins, market cap and risk factors. Because it blends these company specific inputs, it is more tailored than a simple comparison with industry or peer averages. For Glencore, the Fair Ratio is 1.09x, which is higher than the current 0.29x P\/S. On this basis, the shares screen as undervalued on a sales multiple approach.<\/p>\n Result: UNDERVALUED<\/p>\n P\/S ratios tell one story, but what if the real opportunity lies elsewhere? Discover 1450 companies where insiders are betting big on explosive growth<\/a>.<\/p>\n Earlier we mentioned that there is an even better way to understand valuation. On Simply Wall St\u2019s Community page you can use Narratives to write your own story for Glencore by linking what you believe about its business to a set of forecasts for revenue, earnings and margins. These then flow through to a fair value that you can compare with today\u2019s price, update automatically as new news or earnings arrive, and use to see how your view sits between very different takes. For example, one investor might focus on higher copper volumes, cost efficiencies and a fair value closer to \u00a34.61 per share, while another might focus on regulatory, ESG and commodity price risks and settle on a fair value nearer \u00a33.09.<\/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 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":"If you are wondering whether Glencore shares still offer value after a strong run or if most of…\n","protected":false},"author":2,"featured_media":33527,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[123],"tags":[3632,19194,1103,1104,1105,132],"class_list":{"0":"post-35338","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-glencore","8":"tag-cash-flow","9":"tag-cash-flow-projections","10":"tag-dcf","11":"tag-fair-value","12":"tag-free-cash-flow","13":"tag-glencore"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@ch\/116258580916022344","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/posts\/35338","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=35338"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/posts\/35338\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/media\/33527"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/media?parent=35338"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/categories?post=35338"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/tags?post=35338"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}![\"GLEN](\"https:\/\/www.europesays.com\/ch\/wp-content\/uploads\/2026\/03\/0e65e6f2bc7bb7d42ab7ce58705c79f2.png\")
<\/a> GLEN Discounted Cash Flow as at Jan 2026 <\/p>\n<\/a> LSE:GLEN P\/S Ratio as at Jan 2026 <\/p>\n
<\/a> LSE:GLEN 1-Year Stock Price Chart <\/p>\n