TRX Gold Valuation

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

Valuation Score

2/6

Valuation Score 2/6

Below Fair Value
Significantly Below Fair Value
Price-To-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales vs Fair Ratio
Analyst Forecast

Share Price vs Fair Value

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

Below Fair Value: Insufficient data to calculate TRX's fair value for valuation analysis.

Significantly Below Fair Value: Insufficient data to calculate TRX's fair value for valuation analysis.

Key Valuation Metric

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

Key metric: As TRX is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for TRX. This is calculated by dividing TRX's market cap by their current revenue.
What is TRX's PS Ratio?
PS Ratio	2.7x
Sales	US$36.72m
Market Cap	US$100.01m

TRX 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/Revenue	2.8x
Enterprise Value/EBITDA	9.7x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does TRX's PS Ratio compare to its peers?

The above table shows the PS ratio for TRX vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PS	Estimated Growth	Market Cap
Peer Average	2x
THX Thor Explorations	1x	-6.8%	CA$196.8m
ORE Orezone Gold	0.8x	15.0%	CA$284.0m
IAU i-80 Gold	5x	61.7%	CA$368.4m
MMY Monument Mining	1.3x	10.4%	CA$95.2m
TRX TRX Gold	2.7x	47.8%	CA$139.8m

Price-To-Sales vs Peers: TRX is expensive based on its Price-To-Sales Ratio (2.7x) compared to the peer average (2x).

Price to Sales Ratio vs Industry

How does TRX's PS Ratio compare vs other companies in the CA Metals and Mining Industry?

84 Companies	Price / Sales	Estimated Growth	Market Cap
LUN Lundin Mining	1.9x	4.4%	US$7.85b
BTO B2Gold	2x	16.3%	US$3.81b
HBM Hudbay Minerals	1.8x	4.9%	US$3.59b
STLC Stelco Holdings	1.3x	-0.1%	US$2.66b

84 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Sales vs Industry: TRX is good value based on its Price-To-Sales Ratio (2.7x) compared to the Canadian Metals and Mining industry average (3x).

Price to Sales Ratio vs Fair Ratio

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

TRX PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	2.7x
Fair PS Ratio	6.2x

Price-To-Sales vs Fair Ratio: TRX is good value based on its Price-To-Sales Ratio (2.7x) compared to the estimated Fair Price-To-Sales Ratio (6.2x).

Analyst Price Targets

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

Analyst Forecast: Insufficient data to show price forecast.

Discover undervalued companies

Foraco International

CA$215.7m

Provides drilling services in North America, Europe, the Middle East, Africa, South America, and the Asia Pacific.

FAR

CA$2.18

0.5%

21.1%

Chemtrade Logistics Income Fund

CA$1.4b

Offers industrial chemicals and services in Canada, the United States, and South America.

CHE.UN

CA$11.50

-0.3%

30.7%

Interfor

CA$986.4m

Produces and sells wood products in Canada, the United States, Japan, China, Taiwan, and internationally.

IFP

CA$19.17

1.2%

-16.8%