Westgold Resources Limited

ASX:WGX Stock Report

Market Cap: AU$1.2b

Westgold Resources Valuation

Is WGX undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of WGX when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: WGX (A$2.62) is trading above our estimate of fair value (A$0.47)

Significantly Below Fair Value: WGX is trading above our estimate of fair value.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for WGX?

Other financial metrics that can be useful for relative valuation.

WGX key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.4x
Enterprise Value/EBITDA4.2x
PEG Ratio0.4x

Price to Earnings Ratio vs Peers

How does WGX's PE Ratio compare to its peers?

The above table shows the PE ratio for WGX vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average9.9x
SLR Silver Lake Resources
12.2x10.0%AU$1.1b
WAF West African Resources
8.4x24.2%AU$1.2b
RSG Resolute Mining
4.1x-11.3%AU$830.3m
GOR Gold Road Resources
14.8x3.2%AU$1.7b
WGX Westgold Resources
19.1x46.0%AU$1.2b

Price-To-Earnings vs Peers: WGX is expensive based on its Price-To-Earnings Ratio (19.1x) compared to the peer average (9.9x).


Price to Earnings Ratio vs Industry

How does WGX's PE Ratio compare vs other companies in the AU Metals and Mining Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a13.6%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a13.6%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: WGX is expensive based on its Price-To-Earnings Ratio (19.1x) compared to the Australian Metals and Mining industry average (12.5x).


Price to Earnings Ratio vs Fair Ratio

What is WGX's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

WGX PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio19.1x
Fair PE Ratio28.8x

Price-To-Earnings vs Fair Ratio: WGX is good value based on its Price-To-Earnings Ratio (19.1x) compared to the estimated Fair Price-To-Earnings Ratio (28.8x).


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst WGX forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentAU$2.62
AU$2.81
+7.3%
3.3%AU$2.90AU$2.72n/a2
Mar ’25AU$1.96
AU$2.62
+33.9%
4.7%AU$2.75AU$2.50n/a2
Feb ’25AU$2.24
AU$2.64
+17.8%
4.6%AU$2.76AU$2.52n/a2
Jan ’25AU$2.18
AU$2.43
+11.5%
2.6%AU$2.50AU$2.37n/a2
Dec ’24AU$2.13
AU$2.32
+8.9%
1.4%AU$2.35AU$2.29n/a2
Nov ’24AU$2.09
AU$2.29
+9.6%
4.1%AU$2.38AU$2.20n/a2
Oct ’24AU$1.70
AU$2.15
+26.9%
7.3%AU$2.31AU$1.99n/a2
Aug ’24AU$1.71
AU$2.04
+19.3%
1.4%AU$2.07AU$2.01n/a2
Jul ’24AU$1.44
AU$2.06
+43.4%
3.1%AU$2.13AU$2.00n/a2
Jun ’24AU$1.61
AU$2.04
+26.6%
7.0%AU$2.18AU$1.90n/a2
May ’24AU$1.49
AU$2.02
+35.6%
6.1%AU$2.14AU$1.90n/a2
Apr ’24AU$1.31
AU$1.63
+24.3%
7.9%AU$1.76AU$1.50n/a2
Mar ’24AU$0.97
AU$1.48
+51.4%
18.6%AU$1.75AU$1.20AU$1.962
Feb ’24AU$1.24
AU$1.50
+20.8%
16.9%AU$1.75AU$1.25AU$2.242
Jan ’24AU$0.88
AU$1.20
+37.4%
25.2%AU$1.51AU$0.90AU$2.182
Dec ’23AU$0.76
AU$1.21
+60.0%
25.0%AU$1.51AU$0.91AU$2.132
Nov ’23AU$0.77
AU$1.21
+56.9%
25.0%AU$1.51AU$0.91AU$2.092
Oct ’23AU$0.83
AU$1.35
+62.3%
33.7%AU$1.81AU$0.90AU$1.702
Sep ’23AU$0.88
AU$1.36
+54.3%
26.4%AU$1.72AU$1.00AU$1.632
Jul ’23AU$1.22
AU$2.21
+81.1%
4.6%AU$2.31AU$2.11AU$1.442
Jun ’23AU$1.41
AU$2.56
+81.3%
10.2%AU$2.82AU$2.30AU$1.612
May ’23AU$1.64
AU$2.67
+63.5%
5.2%AU$2.81AU$2.53AU$1.492
Apr ’23AU$1.90
AU$2.56
+35.3%
6.5%AU$2.73AU$2.40AU$1.312
Mar ’23AU$2.22
AU$2.85
+28.3%
1.7%AU$2.90AU$2.80AU$0.972

Analyst Forecast: Target price is less than 20% higher than the current share price.


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