Orica Limited (ORI.AX)

DCF Valuation · Basic Materials · Specialty Chemicals

Valuation as at 2026-08-14 · see also the ASX 300 Most Undervalued screen

About Orica Limited

Orica Limited manufactures, distributes, and sells commercial blasting systems, explosives, mining and tunnelling support systems, and various chemical products and services in Australia, Canada, the United States, and internationally. It provides 4D bulk explosives systems, packaged explosives, initiating systems, boosters, and seismic explosive ranges; technical services; and supplementary services. The company also offers automation solutions, including Avatel, a machine equipped with underground development charging system; and secondary breakage and hang up blasting, a tele-remote blasting solution.

Source: Yahoo Finance company profile · factual description, not KashVector commentary

Orica Limited ORI.AX

Basic Materials · Specialty Chemicals

Price
$21.95
Market Cap
$10.17B
Free Cash Flow
$0.80B
Beta
0.67
P/E (TTM)
43.0x
52-Week Range
$18.58–$26.47

Orica Limited's price & financial trends

Annual reporting periods — this market does not have reliable quarterly data on Yahoo (either it isn't required, or coverage is incomplete), so annual is the most granular consistent series across free cash flow and dividends.

Data as at 2026-08-14

Share price · last 2 years

$21.95 +24% vs 2024-08
ASX 200 $17.76$17.62$19.49$23.83$21.01$21.95 2024-082025-012025-062025-112026-042026-08

Earnings per share (diluted) Per year

$0.33 +131% vs FY22
$0.14$0.65$1.09$0.33FY22FY23FY24FY25

Free cash flow Per year

$0.53B +4013% vs FY22
$0.01B$0.46B$0.35B$0.53BFY22FY23FY24FY25

Dividend per share Per year

$0.55 +133% vs FY22
$0.23$0.32$0.38$0.55FY22FY23FY24FY25

Value investing scale · Buffett · Dalio · Graham

Partial Fit
8 / 20 combined score

1 criterion had no data

See the full Buffett, Dalio & Graham breakdown for ORI.AX →

Intrinsic value estimate · 5-year forecast

BEAR
$18.79
vs current $21.95
-14.4% ⚠️ Fairly Valued
BASE
$23.82
vs current $21.95
+8.5% ⚠️ Fairly Valued
BULL
$31.30
vs current $21.95
+42.6% ✅ Undervalued

Assumptions used in this valuation

Every input below is either fetched live from Yahoo Finance or a documented default — nothing is hidden.

Starting free cash flow
$0.80B
Reported free cash flow (Yahoo)
Risk-free rate
4.80% ● LIVE
Live 10-yr govt bond
Beta
0.67
Floored for non-US stocks
Equity risk premium
6.00%
Market-specific seed
Cost of debt
6.10%
Synthetic rating A-, ICR 4.6x
Tax rate
25.00%
Estimated default
Capital structure
E 76% / D 24%
Market cap vs total debt
Projection horizon
5 years
+ terminal value beyond
BearBaseBull
5-yr FCF growth-2.5%-1.7%-0.8%
Terminal growth2.5%2.5%2.5%
WACC (discount rate)8.79%7.79%6.79%

Cost of Equity = Risk-free rate + Beta × Equity Risk Premium = 4.80% + 0.67 × 6.00% = 8.81% · WACC = weighted by 76%/24% capital structure

These numbers come from running Orica Limited's cash flows through the mechanical DCF formula and assumptions above — not from any view on the news, management, or ORI.AX's competitive position. What is DCF?

Want to test your own growth or discount-rate assumptions?Open the full interactive calculator, pre-filled with ORI.AX →

More ASX stocks we've valued

Not financial advice. DCF valuations are highly sensitive to assumptions — small changes in growth rate or discount rate produce large swings in output. This is a mechanical calculation, not a recommendation to buy, hold, or sell.

About this valuation

Computed on 2026-08-14 from Yahoo Finance data, using the same engine as the full DCF tool and the ASX 300 Most Undervalued screen. Every figure above is a point-in-time snapshot of that date — change any assumption yourself in the interactive tool for a live one.

Frequently asked questions

Is Orica Limited (ORI.AX) undervalued?

The Base-case DCF estimates intrinsic value at $23.82 vs a price of $21.95 on 2026-08-14 — a +8.5% margin, so the Base case reads fairly valued. This is a mechanical output, not advice.