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Deterra RoyaltiesASX:DRR -1.58%77 Intrinsic Value: DCF (FCF Based) is A$5.48 as of Aug. 21, 2026. GuruFocus rates ASX:DRR with a GF Score™ of 77/100 and a GF Value™ of A$3.89 (Modestly Overvalued). The stock has 8 warning signs investors should review. Among 57 Metals & Mining companies, Deterra Royalties ranks worse than 1754384.21% on this metric.
Note: Discounted Cash Flow model is only suitable for predictable companies (Business Predictability Rank higher than 1-Star). If the company's predictability rank is 1-Star or Not Rated, result may not be accurate due to the low predictability of business and the data will not be stored into our database.
Deterra Royalties's Predictability Rank is Not Rated. Thus, this page is only used for demonstration purposes and the DCF related results in the screener and portfolio will appear as zero.
The industry rank for Deterra Royalties's Intrinsic Value: DCF (FCF Based) or its related term are showing as below:
ASX:DRR's Price-to-DCF (FCF Based) is not ranked *
in the Metals & Mining industry.
Industry Median: 1.48 * Ranked among companies with meaningful Price-to-DCF (FCF Based) only.
1. The DCF model evaluates a company based on its future earnings power
2. Growth is taken into account; therefore a faster growth company is worth more if everything else is the same.
3. Since we are projecting future growth, it is assumed that the company will grow at the same rate as it did during the past 10 years. Therefore this model works better for the companies that have relatively consistent performance.
4. The DCF model works poorly for inconsistent performers such as cyclicals.
5. What discount rate should you use? Your expected return from the investment is a good discount rate assumption.
6. A larger margin of safety should be required for companies with less predictable businesses.
Deterra Royalties Intrinsic Value: DCF (FCF Based) Related Terms
Deterra Royalties Intrinsic Value: DCF (FCF Based) Historical Data
* Premium members only.
The historical data trend for Deterra Royalties's Intrinsic Value: DCF (FCF Based) can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Other Industrial Metals & Mining subindustry, Deterra Royalties's Price-to-DCF (FCF Based), along with its competitors' market caps and Price-to-DCF (FCF Based) data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Deterra Royalties Price-to-DCF (FCF Based) vs Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, Deterra Royalties's Price-to-DCF (FCF Based) distribution charts can be found below:
* The bar in red indicates where Deterra Royalties's Price-to-DCF (FCF Based) falls into.
This is the intrinsic value calculated from the Discounted Cash Flow model with default parameters. In a discounted cash flow model, the future cash flow is estimated based on a cash flow growth rate and a discount rate. The cash flow of the future is discounted to its current value at the discount rate. All of the discounted future cash flow is added together to get the current intrinsic value of the company.
Usually a two-stage model is used when calculating a stock's intrinsic value using a discounted cash flow model. The first stage is called the growth stage; the second is called the terminal stage. In the growth stage the company grows at a faster rate. Because it cannot grow at that rate forever, a lower rate is used for the terminal stage.
GuruFocus DCF calculator is a two-stage model. The default values are defined as:
1. Discount Rate: d = 11% A reasonable discount rate assumption should be at least the long term average return of the stock market, which can be estimated from risk free rate plus risk premium of stock market. GuruFocus uses 10-Year Treasury Constant Maturity Rate as the risk-free rate and rounded up to the nearest integer. It is updated daily. The current risk-free rate is 4.83%. Please go to Economic Indicators page for more information. Please note that we use the 10-Year Treasury Constant Maturity Rate of the country/region where the company is headquartered. If the data for that country/region is not available, then we will use the 10-Year Treasury Constant Maturity Rate of the United States as default. Then we added a risk premium of 6% to get the estimated discount rate. Some investors use their expected rate of return, which is also reasonable. A typical discount rate can be anywhere between 6% - 20%.
2. Growth Rate in the growth stage: g1 = 11.00%
The Growth Rate in the growth stage is initially set as the default 10-Year FCF Growth Rate (Per Share). In cases where the 10-year growth rate is unavailable, it defaults to using the 5-Year FCF Growth Rate (Per Share). If both the 10-year and 5-year growth rates are unavailable, the system defaults to the 3-Year FCF Growth Rate (Per Share).
However, it's important to note that there is a growth rate range. If the calculated growth rate exceeds 20%, it will be capped at 20%. Conversely, if the calculated growth rate falls below 5%, it will be adjusted to 5% to maintain a reasonable range.
=>
Deterra Royalties's average Free Cash Flow Growth Rate in the past
5 years was 11.00%,
which is between 5% and 20%. => GuruFocus defaults => Growth Rate: 11.00%
3. Years of Growth Stage: y1 = 10
4. Terminal Growth Rate: g2 = 4%
5. Years of Terminal Growth: y2 = 10
6. Free Cash Flow per Share: fcf = A$0.320. However, GuruFocus DCF calculator is actually a Discounted Earnings calculator, the EPS without NRI is used as the default. The reason we are doing this is we found that historically stock prices are more correlated with earnings than free cash flow.
All of the default settings can be changed and the results are calculated automatically.
Deterra Royalties's Intrinsic Value: DCF (FCF Based) for today is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
What does a Intrinsic Value: DCF (FCF Based) of A$5.48 mean?
Deterra Royalties (ASX:DRR) has a Intrinsic Value: DCF (FCF Based) of A$5.48 as of Aug. 21, 2026. Intrinsic Value: DCF (FCF Based) is the stock value based on a two-stage discounted free cash flow model. View historical data on Deterra Royalties and its competitors. According to the industry distribution chart, Deterra Royalties ranks #999999 out of 57 companies in the Metals & Mining industry.
Is Deterra Royalties' Intrinsic Value: DCF (FCF Based) too high?
Deterra Royalties' current Intrinsic Value: DCF (FCF Based) is A$5.48. Based on the distribution chart, Deterra Royalties ranks #999999 out of 57 companies in the Metals & Mining industry, which is in the bottom quartile relative to peers. Overall, Deterra Royalties has a GF Score™ of 77/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Deterra Royalties' Intrinsic Value: DCF (FCF Based) compare to competitors?
According to the Metals & Mining industry distribution chart, Deterra Royalties ranks #999999 out of 57 companies for Intrinsic Value: DCF (FCF Based). This places Deterra Royalties in the lower half of its industry. The industry median Intrinsic Value: DCF (FCF Based) is 1.48. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Intrinsic Value: DCF (FCF Based) for a Metals & Mining company?
The median Intrinsic Value: DCF (FCF Based) among Metals & Mining companies is 1.48, based on 57 companies in the industry. Companies in the top quartile (top 25%) have a Intrinsic Value: DCF (FCF Based) significantly above this median, while those in the bottom quartile fall well below. However, Intrinsic Value: DCF (FCF Based) should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Intrinsic Value: DCF (FCF Based) mean?
A high Intrinsic Value: DCF (FCF Based) can signal that a stock is expensive relative to its fundamentals. Intrinsic Value: DCF (FCF Based) is the stock value based on a two-stage discounted free cash flow model. View historical data on Deterra Royalties and its competitors. For the Metals & Mining industry, the median Intrinsic Value: DCF (FCF Based) is 1.48 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Deterra Royalties's current Intrinsic Value: DCF (FCF Based) is A$5.48. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Deterra Royalties stock overvalued right now?
Based on GuruFocus' analysis, Deterra Royalties (ASX:DRR) is currently considered Modestly Overvalued. The stock's GF Value™ is A$3.89, compared to a current price of A$4.37 — trading 12.3% above its estimated fair value. The current Intrinsic Value: DCF (FCF Based) is A$5.48. Deterra Royalties' overall GF Score™ is 77/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Intrinsic Value: DCF (FCF Based) calculated?
Intrinsic Value: DCF (FCF Based) is calculated from a company's financial statements. For Deterra Royalties (ASX:DRR), the current Intrinsic Value: DCF (FCF Based) is A$5.48 as of Aug. 21, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Deterra Royalties (ASX:DRR) Overvalued in 2026?
Based on GuruFocus' analysis, Deterra Royalties stock appears to be overvalued.
The current stock price of A$4.37 is trading 12.3% above its estimated GF Value™ of A$3.89.
GuruFocus considers Deterra Royalties to be Modestly Overvalued.
Key valuation signals for ASX:DRR:
Intrinsic Value: DCF (FCF Based): A$5.48
GF Value™: A$3.89 vs. price of A$4.37 (12.3% above fair value)
No single metric tells the full story. See the ASX:DRR stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Deterra Royalties was spun out from Iluka Resources in October 2020, with Iluka retaining a 20% interest. Its only material income generating asset is a royalty covering iron ore produced by BHP from the Mining Area C royalty area in Western Australia. This includes the North Flank mine, producing around 60 million metric tons of iron ore a year, and the South Flank mine, which produces around 80 million metric tons. It also covers most of the Tandanya and Mudlark deposits, which BHP intends to develop in the longer term as part of its plan to operate the MAC production hub for at least 50 years. Consistent with its strategy to grow into a diversified royalty firm, its Trident Royalties purchase is likely to provide modest diversification from iron ore.
77GF Score
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Intrinsic Value: DCF (FCF Based) is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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