Assessing Lithium Americas (TSX:LAC) Valuation As Thacker Pass Progress And EV Demand Stay In Focus

Why Thacker Pass keeps Lithium Americas in focus

Recent attention on Lithium Americas (TSX:LAC) is tied to ongoing developments at its Thacker Pass lithium project, where regulatory milestones, financing talks, and EV market relevance are all in focus for investors.

See our latest analysis for Lithium Americas.

At a share price of CA$7.77, Lithium Americas has seen short term momentum pick up, with a 7 day share price return of 30.15%. In contrast, the 90 day share price return shows a decline of 31.42% and the 1 year total shareholder return of 64.97% highlights how quickly sentiment has shifted around the stock as Thacker Pass headlines and changing risk perceptions around early stage lithium developers feed into trading.

If you are looking beyond a single lithium name, this could be a good moment to use Simply Wall St to hunt for fast growing stocks with high insider ownership.

With Lithium Americas posting a 1-year total shareholder return of 64.97% but trading below the average analyst price target, investors may ask whether the recent enthusiasm is overdone or the market is still underestimating its future growth potential.

Price to book of 3.6x: Is it justified?

On a P/B of 3.6x, Lithium Americas trades below the peer average of 15.6x but slightly above the broader Canadian metals and mining industry at 3.1x. This gives you a mixed valuation signal at the current CA$7.77 share price.

P/B compares the market value of the company to its net assets on the balance sheet, which can be useful for asset heavy names like miners and developers. For Lithium Americas, this lens matters because the Thacker Pass project sits on the balance sheet long before it produces any meaningful revenue or profit.

Relative to its direct peer group, the 3.6x P/B looks low. This suggests the market is assigning a lower premium to the Lithium Americas balance sheet than it does to similar companies. However, against the broader Canadian metals and mining industry, that same 3.6x multiple is above the 3.1x average, so the stock is priced at a premium to the sector even though it is currently unprofitable and reports no revenue.

That contrast is important because it implies investors are paying up compared to the wider industry for a company whose losses have been widening over the past 5 years, while also accepting a discount compared to a narrower set of peers that carry much higher multiples. See what the numbers say about this price — find out in our valuation breakdown.

Result: Price-to-book of 3.6x (ABOUT RIGHT)

However, you still need to weigh real risks, including regulatory or project delays at Thacker Pass and the current loss of $242.006m with no revenue yet.

Find out about the key risks to this Lithium Americas narrative.

Build Your Own Lithium Americas Narrative

If you look at these numbers and reach a different conclusion, or simply prefer testing your own view, you can build a custom thesis for Lithium Americas in just a few minutes, starting with Do it your way.

A great starting point for your Lithium Americas research is our analysis highlighting 1 key reward and 4 important warning signs that could impact your investment decision.

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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.

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