NZSE:NTL PE PEG Gauge Feb 16th 18
Metals and mining companies are typically trading at a PE of 15.13x, relatively similar to the rest of the NZ stock market PE of 13.36x. This means the industry, on average, is fairly valued compared to the wider market – minimal expected gains and losses from mispricing here. However, the industry returned a lower 8.94% compared to the market’s 11.76%, potentially indicative of past headwinds. Since New Talisman Gold Mines’s earnings doesn’t seem to reflect its true value, its PE ratio isn’t very useful. A loose alternative to gauge New Talisman Gold Mines’s value is to assume the stock should be relatively in-line with its industry.
Next Steps:
New Talisman Gold Mines recently delivered an industry-beating growth rate in earnings, which is a positive for shareholders. If the stock has been on your watchlist for a while, now may be the time to buy, if you like its ability to deliver growth and are not highly concentrated in the materials industry. However, before you make a decision on the stock, I suggest you look at New Talisman Gold Mines’s fundamentals in order to build a holistic investment thesis.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.