Westgold Resources Limited

ASX:WGX Stock Report

Market Cap: AU$2.6b

Westgold Resources Valuation

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

Valuation Score

4/6

Valuation Score 4/6

  • 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$2.81) is trading below our estimate of fair value (A$6.07)

Significantly Below Fair Value: WGX is trading below fair value by more than 20%.

Key Valuation Metric

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

Key metric: As WGX is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for WGX. This is calculated by dividing WGX's market cap by their current earnings.
What is WGX's PE Ratio?
PE Ratio28x
EarningsAU$94.59m
Market CapAU$2.62b

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 Average12.3x
RMS Ramelius Resources
11.1x-2.9%AU$2.4b
GOR Gold Road Resources
19.9x20.9%AU$2.0b
PRU Perseus Mining
7.4x-8.3%AU$3.6b
WAF West African Resources
10.9x28.7%AU$1.7b
WGX Westgold Resources
28x35.2%AU$2.7b

Price-To-Earnings vs Peers: WGX is expensive based on its Price-To-Earnings Ratio (28x) compared to the peer average (12.3x).

Price to Earnings Ratio vs Industry

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

9 CompaniesPrice / EarningsEstimated GrowthMarket Cap
KCN Kingsgate Consolidated
1.7x-13.3%US$224.57m
GRR Grange Resources
2.6xn/aUS$180.60m
RHI Red Hill Minerals
1.8xn/aUS$178.04m
PTN Patronus Resources
2.4xn/aUS$66.01m
WGX 28.0xIndustry Avg. 11.9xNo. of Companies13PE01224364860+
9 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: WGX is expensive based on its Price-To-Earnings Ratio (28x) compared to the Australian Metals and Mining industry average (11.9x).

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 Ratio28x
Fair PE Ratio29.4x

Price-To-Earnings vs Fair Ratio: WGX is good value based on its Price-To-Earnings Ratio (28x) compared to the estimated Fair Price-To-Earnings Ratio (29.5x).

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$2.81
AU$3.85
+36.9%
10.4%AU$4.48AU$3.49n/a4
Nov ’25AU$3.10
AU$3.80
+22.6%
9.6%AU$4.39AU$3.49n/a4
Oct ’25AU$2.58
AU$3.27
+26.9%
4.9%AU$3.44AU$3.10n/a4
Sep ’25AU$3.04
AU$3.23
+6.2%
7.8%AU$3.55AU$2.93n/a3
Aug ’25AU$2.65
AU$3.30
+24.6%
7.5%AU$3.61AU$3.00n/a3
Jul ’25AU$2.43
AU$3.12
+28.2%
7.3%AU$3.28AU$2.80n/a3
Jun ’25AU$2.31
AU$2.92
+26.3%
18.3%AU$3.30AU$2.16n/a3
May ’25AU$2.16
AU$2.76
+28.0%
20.5%AU$3.33AU$2.20n/a2
Apr ’25AU$2.62
AU$2.81
+7.4%
3.2%AU$2.90AU$2.73n/a2
Mar ’25AU$1.96
AU$2.63
+34.0%
4.7%AU$2.75AU$2.50n/a2
Feb ’25AU$2.24
AU$2.64
+18.0%
4.8%AU$2.77AU$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$2.20AU$3.102
Oct ’24AU$1.70
AU$2.15
+26.9%
7.3%AU$2.31AU$1.99AU$2.582
Aug ’24AU$1.71
AU$2.04
+19.3%
1.4%AU$2.07AU$2.01AU$2.652
Jul ’24AU$1.44
AU$2.06
+43.4%
3.1%AU$2.13AU$2.00AU$2.432
Jun ’24AU$1.61
AU$2.04
+26.6%
7.0%AU$2.18AU$1.90AU$2.312
May ’24AU$1.49
AU$2.02
+35.6%
6.1%AU$2.14AU$1.90AU$2.162
Apr ’24AU$1.31
AU$1.63
+24.3%
7.9%AU$1.76AU$1.50AU$2.622
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
+59.8%
25.0%AU$1.51AU$0.91AU$2.132
Nov ’23AU$0.77
AU$1.21
+56.7%
25.0%AU$1.51AU$0.91AU$2.092

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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