Westgold Resources Valuation

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

WGX (CA$2.6) is trading below our estimate of [[fair value]] (CA$5.58)

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 (CA$2.6) is trading below our estimate of fair value (CA$5.58)

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 Ratio	28.5x
Earnings	AU$94.59m
Market Cap	AU$2.70b

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/Revenue	3.4x
Enterprise Value/EBITDA	10x
PEG Ratio	0.8x

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.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	29.8x
TXG Torex Gold Resources	15.3x	38.9%	CA$2.7b
SSL Sandstorm Gold	49x	86.6%	CA$2.4b
KNT K92 Mining	21x	28.7%	CA$2.2b
OGC OceanaGold	33.9x	58.0%	CA$3.1b
WGX Westgold Resources	28.5x	35.2%	CA$2.7b

Price-To-Earnings vs Peers: WGX is good value based on its Price-To-Earnings Ratio (28.5x) compared to the peer average (29.8x).

Price to Earnings Ratio vs Industry

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

33 Companies	Price / Earnings	Estimated Growth	Market Cap
SLI Standard Lithium	2.9x	n/a	US$325.70m
APM Andean Precious Metals	2.4x	-42.9%	US$133.57m
STGO Steppe Gold	2.3x	n/a	US$117.57m
DC.A Dundee	2.3x	n/a	US$106.83m

33 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: WGX is expensive based on its Price-To-Earnings Ratio (28.5x) compared to the Canadian 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 Ratio	28.5x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate WGX's Price-To-Earnings Fair Ratio for valuation analysis.

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.
Date	Share Price	Average 1Y Price Target	Dispersion	High	Low	1Y Actual price	Analysts
Current	CA$2.60	CA$3.51 +35.0%	10.4%	CA$4.09	CA$3.18	n/a	4
Nov ’25	CA$2.81	CA$3.48 +23.9%	9.6%	CA$4.02	CA$3.20	n/a	4
Oct ’25	CA$2.40	CA$3.04 +26.7%	4.9%	CA$3.19	CA$2.88	n/a	4
Sep ’25	CA$2.70	CA$2.96 +9.6%	7.8%	CA$3.25	CA$2.68	n/a	3
Aug ’25	n/a	CA$2.98 0%	7.5%	CA$3.26	CA$2.71	n/a	3
Jul ’25	n/a	CA$2.83 0%	7.3%	CA$2.98	CA$2.54	n/a	3
Jun ’25	n/a	CA$2.65 0%	18.3%	CA$3.00	CA$1.96	n/a	3
May ’25	n/a	CA$2.46 0%	20.5%	CA$2.97	CA$1.96	n/a	2
Apr ’25	n/a	CA$2.50 0%	3.2%	CA$2.58	CA$2.42	n/a	2
Mar ’25	n/a	CA$2.32 0%	4.7%	CA$2.43	CA$2.21	n/a	2
Feb ’25	n/a	CA$2.33 0%	4.8%	CA$2.44	CA$2.22	n/a	2
Jan ’25	n/a	CA$2.18 0%	2.6%	CA$2.24	CA$2.13	n/a	2
Dec ’24	n/a	CA$2.09 0%	1.4%	CA$2.12	CA$2.06	n/a	2
Nov ’24	n/a	CA$2.02 0%	4.1%	CA$2.10	CA$1.94	CA$2.81	2
Oct ’24	n/a	CA$1.88 0%	7.3%	CA$2.02	CA$1.74	CA$2.40	2
Aug ’24	n/a	CA$1.81 0%	1.4%	CA$1.83	CA$1.78	n/a	2
Jul ’24	n/a	CA$1.81 0%	3.1%	CA$1.87	CA$1.76	n/a	2
Jun ’24	n/a	CA$1.81 0%	7.0%	CA$1.93	CA$1.68	n/a	2
May ’24	n/a	CA$1.82 0%	6.1%	CA$1.93	CA$1.71	n/a	2
Apr ’24	n/a	CA$1.48 0%	7.9%	CA$1.60	CA$1.37	n/a	2
Mar ’24	n/a	CA$1.35 0%	18.6%	CA$1.60	CA$1.10	n/a	2
Feb ’24	n/a	CA$1.42 0%	16.9%	CA$1.66	CA$1.18	n/a	2
Jan ’24	n/a	CA$1.10 0%	25.2%	CA$1.37	CA$0.82	n/a	2
Dec ’23	n/a	CA$1.06 0%	25.0%	CA$1.32	CA$0.79	n/a	2
Nov ’23	n/a	CA$1.06 0%	25.0%	CA$1.32	CA$0.79	n/a	2

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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