MP Materials Corp. (MP) Fair Value & PE Analysis
Industrial Materials · NYSE
Current Price
$38.10
PE Ratio (TTM)
n/m
Intrinsic Value
Use the calculator below to estimate
COMPETITIVE MOAT
↑Unique US Rare Earth Mine
MP Materials operates the only active rare earth mine in the U.S. This provides a critical domestic supply source for strategic industries.
↑Strategic Industry Supply Chain
The company is a key supplier for electric vehicles and defense applications. This positions it as essential for national security and green energy transitions.
↑Scale and Operational Expertise
Mountain Pass mine has significant scale and established operational expertise in rare earth extraction and processing. This creates a barrier to entry for new competitors.
INVESTMENT RISKS
↓Geopolitical Supply Chain Dependence
Despite domestic operations, the global rare earth market is heavily influenced by geopolitical factors, particularly China's dominance. This creates inherent supply chain vulnerabilities.
↓Valuation Premium and Peer Lag
MP Materials trades at a premium valuation despite lagging peers. This suggests market expectations may be too high, increasing downside risk if growth falters.
↓Capacity Expansion Execution
The company's growth relies on successful capacity expansion. Any delays or cost overruns in these projects could significantly impact future revenue and profitability.
Customize the MP PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for MP Materials Corp. respond.
Open PE Calculator for MPCompany Overview
MP Materials Corp. manages and operates facilities dedicated to the extraction and refinement of rare earth elements. The company's primary asset is the Mountain Pass Rare Earth mine, a key operation situated within the Western Hemisphere. MP Materials holds comprehensive mineral rights for this significant deposit and its surrounding areas, alongside proprietary intellectual property essential for the ongoing processing and technological development of rare earth minerals. Its product offerings include critical elements such as cerium, lanthanum, neodymium, praseodymium, and samarium. Established in 2017, the company is headquartered in Las Vegas, Nevada.
Financial Metrics — MP PE Stock Valuation Data
PE Ratio (TTM)
n/m
PEG Ratio
n/m
Earnings Yield
-1.05%
ROE (TTM)
-3.5%
Revenue/Share (TTM)
$1.96
Debt/Equity
0.44x
Frequently Asked Questions
What is the PE ratio of MP?
The trailing twelve-month PE ratio of MP reflects how much investors pay per dollar of MP Materials Corp.'s earnings. This metric is most useful when compared to Industrial Materials peers and the company's own historical range.
Is MP overvalued based on PE ratio?
MP's PE of -90.3x combined with a PEG ratio of -2.51 provides a growth-adjusted perspective. MP has negative earnings, so its PE and PEG ratios are not meaningful here and cannot tell you whether the stock is over or undervalued. Keep in mind that PE-based valuation works best for profitable, mature companies — for high-growth or cyclical Industrial Materials, a DCF analysis may be more appropriate.
How do I value MP stock using PE ratio?
To value MP Materials Corp. using PE: (1) Compare the current PE (-90.3x) against the Industrial Materials median to assess relative pricing, (2) check the PEG ratio (-2.51) to adjust for growth expectations, (3) review the 5-year PE range to identify where the stock sits historically, and (4) estimate fair value by multiplying a target PE by forward EPS estimates. This relative approach complements DCF's absolute valuation.
What is the PEG ratio of MP?
MP's PEG ratio is -2.51, calculated by dividing the PE ratio (-90.3x) by the expected earnings growth rate. Because MP has negative earnings, its PEG ratio is not meaningful and should not be read as a sign of under or overvaluation. Note that PEG accuracy depends on the reliability of growth estimates.
Should I use PE ratio or DCF for MP stock valuation?
PE ratio gives a quick relative read — how MP is priced versus Industrial Materials peers. DCF provides an absolute value based on projected free cash flows. For the most reliable valuation, use PE as a quick comparability screen and DCF for a deeper fundamental analysis. Each method has blind spots: PE ignores capital structure and cash flow quality, while DCF is sensitive to growth and discount rate assumptions.
Learn More
- See MP DCF Valuation → — Intrinsic value via Discounted Cash Flow analysis
- PE Methodology — Step-by-step guide to PE ratio stock valuation
- DCF Methodology — Guide to discounted cash flow analysis
- PE Ratio — Understanding the price-to-earnings ratio
- Intrinsic Value — How to evaluate stock fair value
Related PE Valuations
All Basic Materials valuationsP/E and DCF value MP with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2026-07-29. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.