NovaGold Resources (TSX:NG) Valuation in Focus as Donlin Gold Program Clears Major Regulatory Hurdles

NovaGold Resources (TSX:NG) just revealed final drill results from the 2025 Donlin Gold program along with key regulatory successes. These include entry into the FAST-41 federal permitting process and positive court rulings on project water rights.

See our latest analysis for NovaGold Resources.

NovaGold’s latest permitting wins and impressive drill results have clearly energized investors, with a dramatic 187.32% year-to-date share price return. Momentum has been gathering pace due to legal and operational progress, and the 1-year total shareholder return of 177.28% highlights renewed confidence in the company’s long-term prospects.

If Donlin’s rapid progress has you looking for other high-potential opportunities, now is a great moment to discover fast growing stocks with high insider ownership

With shares surging and several regulatory wins now in place, the big question for investors is this: does NovaGold remain undervalued given its progress, or has the market already priced in the company’s future growth potential?

Price-to-Book of 23.5x: Is it justified?

At a price-to-book ratio of 23.5x, NovaGold trades at a much higher valuation than its metals and mining peers. This indicates a significant premium in the current share price of CA$14.28.

The price-to-book ratio shows what investors are willing to pay for each dollar of a company’s net assets. In the mining sector, this measure can be useful for comparing companies with substantial physical assets, such as projects and reserves, even when revenues are limited or losses persist.

This multiple suggests the market is pricing in a very optimistic outlook for NovaGold’s asset base. However, this ratio is well above both the peer average of 4.4x and the industry average of 2.7x. This makes NovaGold appear expensive relative to similar companies. The premium might reflect expectations for Donlin or confidence in future production, but the gap to peers is notable.

See what the numbers say about this price — find out in our valuation breakdown.

Result: Price-to-Book of 23.5x (OVERVALUED)

However, a lack of revenue and ongoing net losses remain critical risks that could challenge the sustainability of NovaGold’s premium valuation.

Find out about the key risks to this NovaGold Resources narrative.

Build Your Own NovaGold Resources Narrative

If you want to take a closer look or reach your own conclusions, you can review the available data and build a personal investment narrative in just a few minutes. Do it your way

A great starting point for your NovaGold Resources research is our analysis highlighting 3 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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